On-chain data refers to all the information that is recorded directly on a blockchain network. This includes details about wallet balances, transaction history, smart contract interactions, validator activities, token transfers, and much more. But where exactly does this data originate, and how is it accessed?
Every public blockchain—like Bitcoin, Ethereum, Cardano, and others—maintains a decentralized ledger. This ledger is composed of blocks that contain grouped transactions. As blockchain nodes validate these transactions and add them to the blockchain, the data becomes immutable and publicly viewable.
This data is generated in real time by users interacting with the blockchain through wallets or dApps, and by block producers (miners or validators) who bundle and confirm transactions.
There are several ways to access this data:
Node APIs: Running a full node on a blockchain gives you direct access to the ledger's data. For example, Ethereum nodes expose an RPC interface that allows developers to query everything from block headers to transaction receipts.
Blockchain Explorers: Websites like Etherscan or Blockchain.com provide a human-readable way to browse on-chain data. They pull data directly from nodes and present it via intuitive UI.
Third-Party APIs and Analytics Platforms: Services like Glassnode, Nansen, Dune Analytics, and CoinMetrics offer enriched on-chain data analytics. These platforms aggregate raw blockchain data, structuring it for easier analysis and integrating off-chain signals.
Indexing Services: Some solutions, like The Graph, allow developers to build and query subgraphs, essentially custom databases of blockchain data, using a GraphQL interface.
Understanding and analyzing on-chain data is crucial for evaluating market sentiment, network health, and smart contract performance. It's especially valuable for investors, developers, and analysts who want to track metrics like active address count, total value locked (TVL), or transaction volume.
If you're particularly interested in Ethereum, one relevant trend is the growing institutional interest highlighted by ETF flows and staking data. These indicators can be derived and verified via on-chain sources as well.
For more insights on Ethereum's on-chain activity and its implications, check out this related article: Staked Ethereum Hits Record High as ETH Price Tops $2700.