Author: little bear

Dune is a company focused on analyzing Web3 data, providing comprehensive data analysis tools and data analysis dashboards for users of the crypto asset market and blockchain technology.

In a highly digital age, Dune's data analysis tools provide users with real-time market dynamics and price trends, helping users develop better investment strategies. Whether users are novice or professional investors, Dune can provide relatively comprehensive and accurate data analysis and market intelligence. Dune has received a total of $80 million in financing from giants such as @dragonfly_xyz, @multicoincap, and @coinbase in three rounds of financing.

Why is it important to analyze on-chain data? On Ethereum and other blockchain platforms, data is on-chain, that is, all transactions, contract status, and events are recorded on the blockchain, and this data is immutable and undeletable. Therefore, tracking on-chain data is very important for developing and using blockchain-based applications. Ensure the accuracy and integrity of data: Since the data on the blockchain is immutable, tracking on-chain data can ensure the accuracy and integrity of the data. This is especially important for applications in the fields of finance, insurance, supply chain, etc. Real-time monitoring of contract status and transactions: Tracking on-chain data can help developers monitor contract status and transactions in real time, detect errors or abnormalities in a timely manner, and take necessary measures. For developers, they can also better understand user needs and market trends through this data, providing strong support for the development and optimization of Dapps. Analyze and predict market trends: Tracking on-chain data can help analyze data such as currency prices, market trading volume, and positions, so as to predict market trends and make better investment decisions. Automatic execution of smart contracts: Tracking on-chain data can help smart contracts execute automatically, such as triggering specific events or conditions of the contract.

In short, tracking on-chain data is very important for developing and using blockchain applications, which can ensure the accuracy and integrity of data, monitor contract status and transactions in real time, analyze and predict market trends, and automatically execute smart contracts.

How does Dune get its data?

Compared with traditional industries, it is easier to obtain and analyze data on blockchain.

Although the technical details of each chain are not exactly the same, each blockchain follows the logic of "propose a transaction - reach consensus - add it to the chain". There are various consensus mechanisms in the blockchain, but

Once consensus is reached, information about the latest block is broadcast across the blockchain network so that all nodes know about the new block and record it.

In theory, anyone can run their own node, so there is a high degree of transparency in the blockchain world, allowing data analysts to access complete information on anything "that is happening". Dune accesses blockchain data captured by node creators through APIs, so that Dune can focus on creating the best data access experience, while node creators focus on running nodes as efficiently as possible.

The data obtained from the node creator is generally in the form of hash bytecode. After receiving these bytecodes, Dune extracts them into a set of tables called "raw data" through its data engine, and then parses them through smart contracts.

Once the data is parsed, it is created into easy-to-read visualizations and dashboards using SQL, a high-level language used for storage, manipulation, and retrieval in databases.

For example, let me show you how to play Dune

After opening the Dune website, you can see many trend data dashboards, including on-chain statistics of many Dapps, such as Ethereum, Arbitrum, Optimism, etc.

Let’s take @LayerZero_Labs’ digital signage as an example:

Some key information can be extracted:

More than one million wallets are using LayerZero. Users who have made more than ten transactions (generally considered to be active real users) account for 15%. Users who have used LayerZero for less than one month account for 66%.

At the same time, we can retrieve the number of transactions and transaction amounts of any wallet using LayerZero through the wallet address.

We can also create custom digital signage:

If you are proficient in SQL, you can write query code directly in the Dune panel:

In addition, we can also use ChatGPT to generate SQL query code:

To run a query simply paste the code in the editor and click Run:

Then click Save and add some description for this dashboard:

In short, Dune is a very powerful tool. The data dashboard on Dune is intuitively designed and can be easily understood without data analysis skills.

If ChatGPT+Dune can be used properly, I believe it can greatly help Web3 players, developers, etc. to better understand the digital asset market and blockchain network, formulate better investment and trading strategies, optimize DApps and smart contracts, and improve the security and reliability of blockchain networks.