The blockchain system is a complex data structure divided into blocks. Projects deployed in blockchain networks are no less complex systems that require analysis and audit to maintain quality and smooth operation. Who is this hero who is closely examining information in the blockchain? Data Analyst.
Data analytics is extracting insights from data to make better business decisions. The data analysis process follows five iterative phases: sorting, collecting, cleaning, analyzing, and interpreting the results.
Blockchain Application
The collaboration of data science and the world of blockchain has the potential to revolutionize many areas of life: finance, business, healthcare, and industry. Blockchain transforms traditionally centralized database systems into decentralized systems with better transparency, improved security, and low cost of ownership.
The activity of a data analyst and the structure of the blockchain are made for each other; now we will tell you why:
- High Data Quality: All new entries undergo a rigorous block validation process. Blockchain data is well structured, simplifying a specialist’s work process.
- Traceability: Blockchain records contain all the information needed to trace their origin, such as the address that initiated the transaction, recording time; the amount of sent cryptocurrency; address of the recipient.
- Built-in anonymity: Blockchains do not require users to provide personal information. From a data analyst’s point of view, this aspect helps overcome the complexities of some regulations (like the GDPR in Europe) that require anonymity.
- Large amounts of data: Many machine learning algorithms require data to train models. This is not a problem in large blockchain projects – gigabytes of data are available for study.
- In addition to working directly with the blockchain structure, the virtual reality world in the metaverses is also a vast material for the analyst because hundreds of thousands of active users from all over the world with a bunch of connected devices create a relatively large array of data. All this information must be analyzed to prevent problems and failures in the operation of services.
What is to be done?
Data Analyst is a job ideal for the blockchain industry – structuring and interpreting data to improve network performance and eliminate future errors.
Let’s break it down into points:
Data collection
Depending on the goal, the analyst can work with both ready-made data sets in the network and unique programming interfaces (APIs) developed for analyzing databases in the blockchain.
Data cleaning
The raw data may contain duplicates, errors, or deviations. Data cleaning involves assessing the quality of data in an electronic database or through writing programs.
Simulation
Creation and design of blockchain structures. You can select the types of data to store and collect and define the relationships of data categories to each other, with further insights into how data images are now displayed.
Data interpretation
Search for patterns or trends in data that will help answer questions of interest.
Update
Reporting findings is a vital part of the job. To do this, you must put together visual components (charts and graphs), write reports, and present information visually.
How to get into the blockchain?
If you are a beginner and want to dive into data analysis, then before you start learning blockchain, in addition to PC skills and English, you will need the following:
- Understanding the basics of working with SQL tools
- Proficiency in a programming language such as Python
- Working with data display programs like Microsoft Excel
- The mathematical basis for understanding the basics of structuring and sorting information
If you are already an existing data-science specialist, then to work in the blockchain, you should prepare to study the following points:
- blockchain theory for knowing the subject you will work with
- blockchain programming languages (like Solidity and Rust) for working with smart contracts and tokens
- Working with database tools in the blockchain space, such as Dune Analytics or BlockCypher
Prospects for the profession
Describing professions, the NFT Politan team implies the promise of each of them. The profession of a data analyst is also in demand outside blockchain infrastructures. The mathematical aspects of the work imply special requirements for a specialist and a clear understanding of the work processes of the analyzed project. Affecting the salary of a data analyst in the field of blockchain, you can see the following picture: working remotely with foreign companies, you can earn from 65 to 100 thousand dollars a year in this specialty. The rapid development of blockchain technologies (be it DeFi or Metaverses) and the growing demand for the profession guarantee an annual wage increase.
