A look at the importance of on-chain anlysis - blockchain blockchaintechnology
On-chain analysis is a process where someone looks at the on-chain data to help them make decisions. On-chain data often comprises information on every transaction on a particular public blockchain network.
The information obtained from an on-chain study enables anyone to determine who owns what and their transaction activity. For example, users can follow multiple transactions to trace their movements and determine where the payment originally came from. All of this information is recorded on the public ledger for anyone to see.
Trade data and investment activity may be retrieved from the blockchain network and evaluated to help investors create a viable trading strategy. For example, users can create models to help them make trading choices based on historical data. While history does not always repeat itself, it does rhyme, so being able to see how assets have behaved in the past is a good indicator for future strategies.