Cryptocurrency

What is Dune Analytics and How Does it Work

On crypto platforms, changes occur in an eye blink. Therefore, there must be a mechanism to keep ourselves up to date about the crypto marketing trends. There is multiple analytics that is working fairly in the market like SUN ZU Lab, CryptoQuant, and Dune Analytics.

Here we are going to discuss Dune Analytics, a blockchain tool that helps investors, traders, and crypto analysts to analyze, and extract data from the different blockchains. It is an online website where the crypto community comes and seeks their queries. Here most queries are publicly published, and you can get your solution on the latest crypto market trends with just a single click.

What is Dune Analytics

Dune Analytics extracts on-chain data (transactions fee, block metadata) from the blockchain and then transforms it into a human-readable form so that investors and traders can easily read the information about any blockchain.

How Does It Work

Dune Analytics collects data from all the blockchains and stores all the information in its databases. Data could be meaningful as well as raw, Users can get the data by clicking on the given dashboards on their website Dune Dashboard or the user can retrieve the data by adding a new SQL query.

Here is the step-by-step guide on how it works:

Data Collection

Dune Analytics works with the node provider to collect data about the blockchain. There are multiple node providers in the market and their basic goal is to extract on-chain or off-chain information from the blockchain, it could be meaningful as well as raw. Furthermore, Dune Analytics connected with node providers so that they can retrieve information from them and update their own clients.

Data Decoding

When data is collected from the blockchain, it could be in the form of code or another format. When Dune gets data, the very first task done by dune is data decoding and then storing it in its entire database. Decoding of data means conversion of data from a machine to a human-readable form.

Dune Dashboard

Dune Dashboard is the main feature that provides the graphical representation of transactions and circulation of crypto information continuously and regularly.

New Query

If you have customized queries that are not given in the dashboard, you can query the Dune servers to get a quick response. To query the server, you must have knowledge of the SQL so that you can interact with the server and would be able to receive the response. If in case, you don’t have much idea about SQL then in that case you have to recruit a professional developer to interact with the server using SQL.

Freeware

Anyone can access this platform as it is publicly available, most of the queries are publicly available except confidential queries by the authors or analyzer.

Conclusion

Dune Analytics extracts on-chain data from the blockchain and then transforms it into human-readable. Anyone can access the data about a particular blockchain, moreover, it provides a graphical representation of transactions and circulation of crypto information continuously and regularly. Users can access the databases through the dashboard as well as by generating new SQL queries.

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Talha