Author｜Jason Jiang
Data is the most valuable resource in the world today, and it is also the battleground for digital nuggets. Although Web3 still has many controversies so far, with the diversified development of on-chain ecology such as Inscription, Gamefi, and DeFi, we are in the midst of an explosion of Web3 applications, and the blockchain data track has also attracted much attention.
In the context of the overall relatively deserted Web3 investment and financing market in 2023, the blockchain data track has "bumped the trend" and gained the favor of many capitals: as of December 15, 2023, there are nearly 40 blockchain data companies and projects around the world that have received financing, attracting a total of more than 176.9 million US dollars into the Web3 market.
This article was first published on the official Medium of OKG Research. Click the link below or "Read the original text" to get more exciting content:https://medium.com/@OKGResearch/okg-research-4-major-trends-of-the-blockchain-data-track-in-2024-2340e5dfdf30
Why does capital pay attention to the blockchain data track?
Capital is the bellwether of the market. The reason why the blockchain data track can win the favor of capital in 2023 is first of all its certainty. The main task of Web3 today is to increase the adoption rate, and this needs to be based on more actual needs. Compared with other gimmicky encryption narratives, the blockchain data track seems to have no room for imagination, but its market demand is more practical and real.
Beyond certainty, we cannot underestimate the long-term potential of the blockchain data track. The global big data and business analysis market will be worth nearly US$280 billion in 2022, and the annual revenue of the financial data analysis business will exceed US$38 billion. Compared with the traditional data analysis market, the on-chain data market is conservatively estimated to reach tens of billions.
Judging from the capital inflow situation, on-chain data analysis and Web3 security are the segments that attract the most attention and are easiest to obtain financing in the current blockchain data track. According to incomplete statistics from the Ouke Cloud Chain Research Institute, 80% of the invested projects and more than 90% of the investment amount in the blockchain data track in 2023 belong to these two fields . As the Web3 compliance process accelerates, transaction monitoring and anti-fraud and anti-money laundering solutions based on on-chain data will also receive more attention in 2023.
Source: OKG Research
Although the disclosure and availability of data on the chain make the blockchain data track seem to have lost its moat, the high costs and continuous R&D investment required to build various products have formed an insurmountable "invisible barrier": smart contracts Generating event logs requires high gas fees; real-time tracking and analysis of data requires huge computing resources; parsing and utilizing unstructured data requires continuous R&D investment...
Compared with other popular narratives that can yield dozens or even hundreds of times returns, the blockchain data track is definitely not a good short-term investment choice. But the reason why capital is willing to invest real money, and Web3 technology companies such as Ouke Cloud Chain are also willing to continue to delve into it, is because on-chain data is the foundation of the Web3 industry. No matter from which perspective you interpret Web3, data is the core and lowest element. Whether it is capturing on-chain Alpha, formulating on-chain development strategies, or building new security and compliance solutions around Web3, almost all Web3 activities are inseparable from blockchain data.
Source: OKG Research
A previous report said, “If you don’t have an All-in heart, don’t touch Web3.” Now it seems that this sentence may be more appropriate in the field of blockchain data.
2024, 4 major trends in the blockchain data track
Although the blockchain data track has the potential to become the most important part of the Web3 ecosystem, it is still in the early exploration stage. This is not difficult to see from the financing situation in 2023: the financing amount of the blockchain data track is generally less than 10 million US dollars, and the financing rounds are mainly seed rounds .
Source: OKG Research
With the advent of large-scale adoption of Web3, the blockchain data track will usher in more deterministic opportunities, so it is destined to have an influx of more funds and institutions. In this process, Ouke Cloud Chain Research Institute believes that the blockchain data track will show the following four trends in 2024:
1. In-depth integration with AI will make it more worth looking forward to
AI technology is fully empowering the blockchain data track, not only to further improve data analysis and application capabilities through AI, but also to realize self-learning of data on the chain to make it more intelligent and efficient, thereby providing a wider range of applications and users. Provide reliable data support. Of course, authentic and trustworthy blockchain data is also continuing to improve the explainability of AI. The combination of blockchain data tracks and AI technology is becoming common. In 2023, no less than 5 blockchain data + AI companies have received financing. In 2024, the in-depth integration of blockchain data track and AI will be even more worth looking forward to.
2. Large and comprehensive platforms and small and beautiful platforms will complement each other.
The blockchain data track requires long-term investment. From 2C browsers, to 2B Onchain AML, and then to 2G Chaintelligence, the reason why Ouke Cloud Chain has launched diversified on-chain data products covering the entire group is that it has been in the blockchain data track for more than ten years. Years of intensive cultivation and investment are the accumulated results from quantitative changes to qualitative changes . This model is not suitable for other similar projects, let alone new entrants. Judging from the financing situation in 2023, small but beautiful blockchain data platforms that focus on niche areas are also developing rapidly and are more likely to compete for user attention. Such as Mnemonic, NFTGo, which focuses on the NFT track, and Octav, which focuses on the DeFi track.
Compared with the large and comprehensive, the small and beautiful blockchain data platform has a light business model and has more room for adjustment. It is a better choice to meet specific business scenarios and users. A large and comprehensive blockchain data platform can support richer application scenarios and business needs, and is a key infrastructure to promote the large-scale adoption of Web3. There is no contradiction between big and comprehensive and small and beautiful. On the contrary, the two types of institutions can complement each other and jointly build a more complete blockchain data service system.
3. Integrating off-chain data and scenarios is an inevitable choice for development
Web3 is undergoing an evolution from pure on-chain to "on-chain + off-chain". Circle-breaking applications such as RWA and NFT are inseparable from the support of off-chain assets. Therefore, the blockchain data track also needs to break barriers. In 2024 Only by embracing off-chain data more proactively and achieving an organic combination with virtuality and reality can we adapt to encryption innovation and Web3 market development. On the other hand, blockchain data projects must continue to go deep into scenarios and integrate more closely with the needs of social, sports, culture and other scenarios to give full play to the value of data.
4. Centralization and decentralization are not either/or
There are currently two development paths in the blockchain data track. The most common is a centralized model similar to Web2 data companies, which relies on the company's own strong data analysis capabilities to provide professional services to customers, such as Nansen and Glassnode; the other is It is a decentralized model that is more in the spirit of Web3 technology, which relies on developers and community construction to achieve positive feedback loops such as data products and insights, such as Dune and Footprint.
However, judging from the overall trend of Web3, the two paths will eventually converge. That is, while enterprises continue to increase investment in blockchain data research and development, they will also pay more attention to developers and community building, and make data products and services richer and more comprehensive through community feedback. More effective and more down to earth. This is one of the most obvious differences between blockchain data platforms and Web2 data companies. Ouke Cloud Chain is currently exploring in this direction, allowing more users to participate in the construction of on-chain data through UGC and Open API, and jointly explore the value on the chain. We believe that in 2024, more blockchain data platforms will continue to increase investment in data research and development while strengthening community building.
Every address and every interaction together build a sea of stars belonging to the Web3 ecosystem, and blockchain data is one of the most important anchors in this digital world. From DeFi Summer to NFT Summer, from Layer2 Summer to today’s Inscription Summer, all Web3 innovations are inseparable from blockchain data support. In the data-native Web3 era, it is difficult not to look forward to more Alpha magic of blockchain data.