Open data: Blockchain’s unfulfilled promise

Original title: Open Data: The Unfulfilled Promise of Blockchain

Original author: Jim Myers

Original source: CoinDesk

Compiled by: Mars Finance, MK

Jim Myers, co-founder of Flipside Crypto, pointed out that on-chain analytics platforms should strive to make core data more open to everyone and should not set unnecessary restrictions.

Since blockchain technology first emerged more than a decade ago, its promise of decentralization, disintermediation, and radical transparency has been spectacular. However, the reality behind these visions is alarming: a large amount of data generated on public blockchains remains closed to ordinary users.

As the application of blockchain technology in finance, supply chain, governance and other fields is accelerating, we, as members of the industry, must reflect on whether we are truly fulfilling the core values ​​of this technology.

Jim Myers is not only the CTO of Flipside Crypto, but also its co-founder.

between promise and reality

Public blockchain aims to build an open ecosystem in which participants can interact freely without centralization barriers. These transparent ledgers reveal economic activity, user behavior, adoption trends, and other critical dynamics.

Although the concept of blockchain advocates openness and easy access, there is still a clear asymmetry in access to information. On-chain data analysis, the key to informed decision-making, has been largely restricted by private platforms and paywalls, making it both incomprehensible and inaccessible to the average user.

There are numerous examples of how existing analytics platforms can leverage on-chain data to provide powerful and important insights. For example, in February 2021, the U.S. Department of Justice announced that it had recovered more than $1 billion in Bitcoin related to Silk Road, a darknet market that closed in 2013, using Chainalysis’ on-chain data.

Furthermore, indicators such as those tracked by platforms like Skopenow could have foreseen the event before FTX collapsed and affected hundreds of thousands of cryptocurrency holders. While these achievements are impressive, they have not yet achieved the data openness promised by blockchain. These are advanced services that are inaccessible to ordinary people.

The true face of open data

This doesn’t mean existing analytics platforms shouldn’t offer paid services and premium subscription plans. Even mission-driven companies need to make a profit, and there will always be a subset of users who require more complex, resource-intensive services.

Therefore, these platforms should allow free users to manually query the data and build public dashboards for other members of the Web3 community to view and benefit from. For business users, these platforms can offer paid subscription tiers with more powerful tool suites such as programmatic data access, prioritized API queries, and connections to third-party tools like Tableau and Power BI.

At the same time, analytics platforms should reward community members who use their free data to benefit their broad user base and encourage high-quality contributions through projects. These platforms can harness the collective wisdom of thousands of analysts, serve as a bridge between the complex world of on-chain data and the wider public, and incentivize outstanding contributions through collective ownership and exploration.

While this ideal mutually beneficial arrangement is appealing, there are simpler ways to keep providing data to users for free. Platforms can exchange access to advanced data or analytics tools by incentivizing users to complete microtasks such as data validation, anomaly detection, and content curation, or simply offer time-banked or ad-supported access.

The issue of transparency is not only about how value flows on the blockchain, but also about who has access to information about those flows.

Therefore, we must strive to better integrate commercial interests with the public interest of open on-chain data. The lack of a comprehensive perspective prevents researchers from accurately mapping patterns, entrepreneurs from identifying urgent needs, and legislators from enacting informed policies.

The perspective of a single analyst cannot match the collective wisdom of the world, which limits the development of innovation. Whenever flawed assumptions and analysis go unchallenged, the credibility of the entire crypto industry suffers. Without easily understandable, critical, and verifiable data, the public perception that cryptocurrencies are only used for money laundering will persist, even as evidence shows that cash remains the preferred choice for criminals.

Open data, open minds

Correcting misinformation and opacity is simple – the community must come together and treat on-chain data as the public resource it deserves. This means that on-chain analytics platforms should aim to make core data more open to everyone, rather than setting arbitrary restrictions.

The value of transparency lies not only in how value flows on the blockchain, but also in who has access to information about that flow.

Partnering with blockchain networks can provide new revenue streams for analytics platforms. For demand-intensive commercial uses, value-added service fees can still be reasonably charged. However, the underlying on-chain data, i.e. the basic transaction activity across the blockchain network, should be open and accessible by default.

Unrestricted access to on-chain data brings collective benefits that far outweigh pure fairness. This will allow global talent to test hypotheses, clarify misconceptions and deepen system understanding. This kind of transparency and critical analysis can attract institutional investors who are skeptical about the future of crypto.

Data democracy only makes sense if it can be sustained

We have many real-world examples of the benefits of open data, especially when it comes to blockchain. When the COVID-19 pandemic disrupted global supply chains, the value of blockchain solutions became apparent. Companies implementing blockchain technology are demonstrating resilience by increasing supply chain transparency and traceability while also reducing administrative costs.

Essentially, those within the industry don’t need outsiders to emphasize the inherent transparency of blockchain. The problem is, not everyone fully understands this value proposition. But to truly realize its benefits, we need open access to data so that everyone can directly evaluate the utility of blockchain in real-world applications and not just believe the rhetoric of some NFT PFP on Twitter.

If cryptocurrencies are to become the gateway to the web3 world we envision, then on-chain data must be open and freely visible to everyone through this portal. The choice is clear, as is the huge opportunity at hand. The question that remains is whether the industry can act on its long-held commitments.

热点： DATA OPEN PROMISE