Understanding Web3 Analytics: Gathering Relevant and Actionable Data in a Decentralized World

In order for a business to succeed, having access to relevant and up-to-date data is crucial. This is especially important for startups that are seeking to establish their position in the market and gain an early advantage over competitors.

By Medb Kiely-Cuddy · Author at Blockmate.io

Through effective user analytics, businesses can gain insight into how customers interact with their products, apps, website, and other marketing channels. Armed with this information, they can make more informed and data-driven decisions.

That’s why tools such as Google Analytics have become a staple in the arsenal of every marketer. With the ability to select the most relevant metrics for their marketing strategy, marketers can quickly access actionable data in a user-friendly format.

So far, so Web2.

However, with more and more developers and businesses making the transition to decentralized Web3 protocols, our approach to analytics needs to adapt alongside it.

Is there a Web3 equivalent to Google Analytics? Not quite. But solutions are on the way.

Challenges of collecting Web3 Data

Web3 is founded on three core values, one of which is data ownership. Unlike the present norm where centralized entities gather, harvest, and sell sensitive user data, Web3 ensures that user identities remain largely anonymous.

Users interact through various disconnected wallet addresses and pseudo-anonymous social media profiles, and their profiles are fragmented across multiple blockchains and protocols, making them challenging to trace.

Web3 companies have a deep commitment to decentralization and data ownership. As such, personal identity-based metrics such as age, gender, marital status, and so on, are now irrelevant and unnecessary. Instead, new metrics such as community engagement, NFT ownership, wallet balance, human/bot behavior, and more are used to gather user data.

Key Web3 metrics

When it comes to Web3 metrics, each project will have specific needs depending on their use case. However, there are several key metrics that all projects should keep an eye on, regardless of whether they are focused on gaming, NFTs, DeFi, or any other Web3 protocol.

Here are some of the essential metrics:

• • Total number of users: See how many wallets have signed up for your app. This will help you track user growth and measure the effectiveness of your marketing campaigns.

• • Active users: Identify those who are actively using your app and track interactions by hourly, daily, weekly, and monthly interactions. Encourage user engagement by reaching out to new wallets with airdrops/free NFTs, and more.

• • New users: Keep track of new wallet connections and the time it takes for them to start making transactions/purchases related to your app.

• • Bots: Detect and separate bot activity from human interaction. This will help you have a clear picture of the true user numbers and avoid skewed analytics that could misdirect valuable resources.

• • Location distribution: Discover where your users are signing up to target your marketing to your most active locations and tailor your messages to the languages that your users are using.

• • User profiles: Identify users that have connected their social media accounts to their wallets. Target them on Twitter, Discord, or other popular platforms with tailored ads or deals.

• • Account balances: Target high-value users and boost retention with special deals and rewards for activity. Having a group of high-value users or “whales” in your community is essential for attracting new users and providing liquidity for new projects.

• • Risk scoring: Identify problem users with a history of fraud or bad behavior. Use tools like Blockmate to give each wallet a risk score based on their connections and previous transaction behavior.

• • Transactions: Track in-app transactions and segment users by their preferences to learn which marketing strategies are most effective.

By keeping a close eye on these metrics, Web3 projects can gain insight into user behavior, optimize their marketing strategies, and improve user engagement.

The importance of community in Web3

Community is another core principle of Web3. Unlike in centralized environments, the relationship between businesses and their customers is more than just transactional. Many Web3 projects are governed by Decentralized Autonomous Organizations (DAOs).

DAO membership is gained by ownership of a particular NFT or amount of tokens. Senior members are elected by the community, providing an opportunity to participate directly in decision-making processes. The health of your community is crucial to business success in Web3 and includes factors such as level of activity, quality of investors, and education about your product.

User analytics will be a crucial element in the DAOs of the future. Web3 companies need to identify their most active, influential, and valuable users to build communities that best reflect their values and goals. They can also incentivize good behavior with rewards for productive members, and through analytics, they can determine if any members act in bad faith.

Innovative fintechs that provide Web3 analytics apps that specialize in community building and DAO governance will be in high demand. As you expand your services and user base into Web3 protocols, consider the importance of community and the role that user analytics will play in DAOs of the future.

How to gather Web3 data

Transparency is the third core value of Web3, and it’s achieved through the use of an open blockchain ledger where all on-chain activities are publicly available. By typing in a wallet address on a blockchain explorer, anyone can access its full transaction history.

While this might seem invasive, it’s important to note that wallet addresses remain anonymous unless the user links them to personal identifiers like social media profiles. This means that businesses can freely collect and access Web3 data without compromising user identity.

However, manually searching every user’s wallet and transactions would be incredibly time-consuming and inefficient.

That’s where Web3 API providers like Blockmate come in. We’ve recently launched a comprehensive analytics suite that consolidates and presents useful Web3 data in an easy-to-read format. Is this the closest thing to Google Analytics for Web3 so far? We’d like to think so!

With Blockmate Analytics, Web3 businesses can gain valuable insights into their user base. Our comprehensive analytics suite covers the entire customer journey, from acquisition to engagement, retention, and monetization. You can easily track and analyze user behavior with our customizable dashboard or build your own using the API endpoints.

For those looking to dive even deeper into their data and apply it to specific use cases, we also recommend checking out DeepSonar.io. This custom analytics tool is perfect for developers, NFT creators, and Web3 gaming platforms alike. It provides specialized metrics tailored to your project’s needs.

With these powerful analytics tools at your fingertips, Web3 data has never been more accessible or easier to interpret!

Web3 analytics: same same, but different

In Web3, user analytics remains a critical aspect, much like in Web2. However, factors such as decentralization and data ownership have altered the landscape. Business models that prioritize community introduce a new set of metrics to analyze and interpret.

While a comprehensive tool like Google Analytics doesn’t yet exist for Web3, products such as Blockmate Analytics are swiftly narrowing the gap. With a few clicks, you can grasp the dynamics of your user base quickly and effortlessly. This will enable you to establish more effective, productive relationships with your community and boost revenue with personalized and targeted marketing strategies.

Curious? Sign up to Blockmate today and book a free demo of our brand-new analytics tools!