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The Power of On-Chain Analysis: Unlocking Insights in the Crypto Industry

In the dynamic world of cryptocurrencies, on-chain analysis plays a crucial role in understanding economic and technical risks, identifying scams, and making informed price predictions. With the crypto industry evolving at a rapid pace, the need for skilled on-chain analysts has never been greater. This blog post explores the intricacies of becoming an on-chain analyst, the tools they utilize, and how their expertise benefits the crypto ecosystem.

Understanding Blockchain Technology:

To embark on a career as an on-chain analyst, individuals must possess a strong understanding of blockchain technology. This foundational knowledge allows analysts to decipher the intricate workings of cryptocurrency transactions and trace them through blockchains. Familiarity with concepts such as cryptography, decentralization, and consensus algorithms is essential.

Leveraging Tools and Intelligence Platforms:

On-chain analysts rely on various tools to extract data and gain insights from blockchain networks. Block explorers, such as Etherscan and blockchain.info, provide an interface to observe and analyze transactions. These tools allow analysts to identify patterns, track wallet addresses, and uncover hidden connections. Additionally, intelligence platforms like Chainalysis and CipherTrace provide comprehensive data analysis, helping analysts assess transactional risks and detect suspicious activity.

Technical Skills and Financial Mathematics:

Analysts must possess technical skills to analyze on-chain data effectively. Proficiency in programming languages, such as Python and Solidity, facilitates data extraction and manipulation. Furthermore, a solid grounding in financial mathematics enables analysts to confidently evaluate market trends, liquidity dynamics, and other vital metrics. These skills empower them to make informed projections and assess potential market risks.

The Importance of Soft Skills:

Attention to detail and perseverance are indispensable soft skills for on-chain analysts. Tracking transactions across a vast sea of data can prove challenging, and the ability to meticulously investigate each interaction is crucial. Additionally, as the crypto landscape constantly evolves, analysts must exhibit perseverance to stay on top of new developments, update their knowledge, and adapt their strategies accordingly.

Building a Portfolio and Establishing a Career:

Aspiring on-chain analysts can build their portfolio by sharing their findings and analysis on social platforms. Engaging with the crypto community and demonstrating a strong understanding of blockchain technology can attract attention from industry professionals. This can open doors to freelance opportunities or full-time positions at blockchain analytics firms, exchanges, or regulatory bodies.

Sam Bankman-Fried’s Temporary Release Request:

In recent news, Sam Bankman-Fried, the founder of FTX exchange, has requested temporary release from jail during his trial. Bankman-Fried’s lawyers argue that it is challenging to adequately prepare for the trial while he remains in jail, given the substantial amount of case materials and potential witnesses provided by the government. The proposed conditions for release, including being accompanied by attorneys or a security guard outside the courtroom and adhering to a gag order, reflect the legal team’s commitment to ensuring a fair trial.

Iliad’s Investments in Artificial Intelligence:

Shifting focus, French telecommunications group Iliad is investing millions in the local artificial intelligence (AI) industry. With €100 million already invested in an AI research lab in Paris, led by Iliad chairman Xavier Niel, the company is actively driving AI innovation in France. The acquisition of a powerful AI supercomputer further strengthens Iliad’s commitment to fostering AI capabilities. Through subsidiary Scaleway, Iliad aims to offer clients access to cutting-edge cloud-native AI tools, aligning with the European Union’s efforts to support AI startups with access to supercomputers.

On-chain analysis holds significant importance in the crypto industry, enabling analysts to navigate risks, identify scams, and make informed projections. Armed with a strong understanding of blockchain technology, proficiency in utilizing tools and intelligence platforms, and a blend of technical and soft skills, aspiring on-chain analysts can shape a thriving career in this burgeoning sector. With continued advancements in the field, the role of on-chain analysts will be pivotal in ensuring the healthy growth and stability of the crypto ecosystem.

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