Benzinga - Blockchain experts recently delved into the complexities and opportunities of harnessing blockchain data in today's market and discussed the challenges of handling fragmented blockchain data across numerous global exchanges last week at the Benzinga Future of Digital Assets.
In the panel discussion, "Harnessing Blockchain Data and Market Insights for Informed Decision-Making in Digital Assets," were Shawn Douglass, CEO of Amberdata, and Matt Kunke, research analyst at GSR, who also addressed the challenges of aggregating granular order book level data from various markets and the intricate process of analyzing on-chain data.
"We connect into every major spot market, derivatives market, options venue, and collect real-time, super granular order book level trade level data," Douglass said, highlighting the depth and breadth of Amberdata's capabilities.
Kunke from GSR, a crypto liquidity provider and market maker, shared insights into the fragmented nature of blockchain data and the significance of maintaining API connections across numerous exchanges.
"You have this fragmentation problem that really doesn't exist elsewhere... There's a lot of data to digest and aggregate," Kunke noted, emphasizing the challenges faced by market makers in the crypto space.
Douglass further elaborated on the technical complexities of accessing and processing blockchain data, contrasting it with traditional finance data aggregation.
He described blockchain as "a decentralized database, an application server, a tokenized incentivized currency that has data as an input and output that drives outcomes."
This complexity, according to Douglass, necessitated deep subject matter expertise and significant technical resources.
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The discussion also touched upon the critical role of integrity and credibility in the blockchain data space.
Kunke pointed out the importance of finding reliable data providers, especially given the lack of trust in certain trading entities.
"It's pretty important to find a provider that is actually looking at it with a credible eye," Kunke stressed, underlining the need for diligent data verification in the crypto industry.
As for the future of blockchain data, both panelists agreed on the potential for significant growth and innovation.
Douglass expressed optimism about the increasing demand for blockchain data services, especially with the involvement of traditional financial institutions.
"We've got a really healthy pipeline right now...next year, it's off to the races again," Douglass predicted, foreseeing a bullish market trend.
The panelists also highlighted the evolving landscape of blockchain data, underscoring the challenges and opportunities that lie ahead.
From regulatory progress to the burgeoning interest of traditional financial players, the field is poised for significant transformation, driven by the increasing sophistication and scale of data analysis in the blockchain domain.
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Photo: Moderator Michael Graham, Matt Kunke, Shawn Douglass, photo, Pratya Jankong for Benzinga
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