RootData: Redefining the data readability of encrypted assets, creating a powerful tool for ordinary traders

Author: RootData

Original Title: “RootData: Enhancing Data Readability of Crypto Assets and Developing a Premium Product for the Average Trader”

Compiled by: Matt Cheng, ChainCatcher

From Layer 1, DeFi to NFT, from BRC20, RWA to social, the hotspots in the crypto market are constantly shifting, making it hard to keep up. The consistent result of all these changes is that the scale of on-chain and off-chain data in the entire industry is rapidly expanding, and the wealth effect embedded in this is stimulating market participants' systematic exploration of potential hotspots.

RootData was born in such a grand context. The core team of RootData has over five years of experience in data and content production in the Web3 industry, dedicated to bridging on-chain and off-chain data, presenting a rich project/asset detail page, and a three-dimensional flow of Web3 trading data changes to help users improve the quality of their investment decisions.

Since the internal testing began in December 2022, RootData has completed the first phase of exploration, which is the comprehensive integration of early trading data off-chain for professional institutions. Centered on the off-chain information of projects, RootData has thoroughly broken down the fundamental information of projects, including basic introduction, financing, team, tokens, news, tags, ecosystem, region, and 22 other pieces of information. This data is not as standardized as on-chain data (which can be exported and analyzed with just an API); it is considered "dirty and heavy" "grunt work." Therefore, no off-chain data platform has been widely recognized in the market for many years, and many users have been using traditional data platforms like Crunchbase to view crypto project information. However, due to the uniqueness of the Web3 industry, traditional data service providers have largely constrained the efficiency and accuracy of user information processing.

However, we have persevered. Off-chain data is complex and fragmented, but its importance is undeniable. After processing millions of data points, RootData has established a mature process for data scraping, cleaning, summarizing, and inputting, and is integrating AI contributions. Ultimately, every piece of data entry will undergo manual review to ensure the authenticity and accuracy of the data, presenting the most important and high-credibility data information to readers. In addition, community users are also assisting in the construction of the database, having contributed over a thousand pieces of content feedback, further enhancing the reliability of the content.

As of early October, RootData has recorded over 200 tags, 9,000 crypto projects, 5,000 investors, 6,000 individuals, and nearly 6,000 financing/merger information, nearly covering all projects and investors in the Web3 industry, and updating transaction and project changes in real-time. This data is presented to users in a highly combinable UI, such as "Unreleased projects invested by Binance Labs," "RWA projects that have received financing," "Polygon ecosystem projects with financing amounts exceeding $1 million," and so on.

Additionally, RootData has specially created a "collection" feature to establish information lists for projects with certain common attributes, such as "List of crypto projects that died in 2022," "Crypto projects founded by Tsinghua University alumni," "Ethereum Foundation grant projects," and "Crypto projects holding Singapore digital payment licenses." Each user can also create their own exclusive Portfolio collection to track the projects they are interested in.

Through these practical features and a powerful data engine, RootData has received praise from various sectors of the industry over the past period and has become the preferred asset inquiry platform for many crypto asset investors and enthusiasts both inside and outside the circle, with cumulative visits exceeding 1 million and data cited by mainstream media such as The Wall Street Journal and Decrypt. Just as checking prices is done on CoinMarketCap or CoinGecko, checking comprehensive information such as project financing on RootData has become a daily habit for many users.

However, we are well aware that the current product form of RootData is still some distance from the ideal state, and there is still room for further improvement in meeting user needs for trading and research, so the second phase of exploration is imperative.

Indeed, on-chain data is a more competitive track, with competition being fiercer. As various on-chain application ecosystems explode, user behavior data on-chain is becoming increasingly rich, coupled with a significant increase in open building blocks. This year, various on-chain data platforms have emerged, such as NFT data platforms, portfolio tracking platforms, whale address monitoring and tracking platforms… These platforms are all vying for users' attention.

According to RootData's data, in the context of the overall financing amount in the industry continuing to shrink, the financing amount in the tools and information services track has rapidly increased by 90% for two consecutive quarters since the first quarter of this year, leading all other main tracks. Among them, most of the projects that received significant financing amounts are on-chain data platforms, including Cymbal, CoinScan, Web3Go, etc. This phenomenon indicates that the commercial value of on-chain data has been recognized and favored by various parties in the industry, entering a period of prosperity and development.

An obvious sign is the sharp increase in the dissemination of address labels. In addition to common exchange addresses, many market makers, project treasuries, and well-known individuals' on-chain addresses have also been uncovered, and their every move is closely monitored by the market, even becoming the subject of real-time tracking reports by various media. Fundamentally, the crypto secondary market is still mainly driven by the dynamics of large holders and market sentiment, with token distribution being relatively concentrated. The dynamics of these representative addresses are highly correlated with token price trends, thus becoming the focus of the market.

As the transparency of address information increases, the complexity of the game among market participants is also rapidly rising. In the past, this information was mostly hidden under the market's unpredictable waves; now these addresses have become semi-public information, and the channels and efficiency of information processing have become the key to the game. However, many current on-chain address intelligence platforms still have a high reading threshold and low readability, and many users can only learn about relevant information from media or KOL dissemination.

RootData believes that the combination of on-chain and off-chain data will elevate the user experience of reading on-chain data to a new level. Truly effective data tracking is based on understanding the fundamentals of assets, rather than merely the changes in inflows and outflows.

Furthermore, RootData believes that as the entire Web3 market continues to improve in compliance and robustness, more users will return to focusing on structured fundamental asset data and the key trading data behind it, forming trading judgments.

The core goal of RootData in the new phase is to create a one-stop product for users to track their asset portfolio data and large holder data, presenting the dynamics of institutional, project, and Smart Money funding games behind the assets in a three-dimensional manner. This means that users on RootData can not only see the fundamental information of projects but also understand the dynamics of whale addresses for their tokens, changes in the number of holders, and more, and track any on-chain and off-chain data dynamics of any token of interest in real-time on the dashboard, as well as the asset portfolio changes of any address (individuals, investment institutions, project parties, Smart Money, etc.).

By combining on-chain address information with the existing project database, users will be able to obtain information such as asset introductions, news dynamics, and whale changes related to that address while viewing any address, significantly enhancing the reading experience and efficiency of on-chain data, making it easier for users to capture more trading signals and make investment decisions. This will be a revolutionary improvement in user experience and interaction processes, especially for trading-oriented users.

The vast on-chain and off-chain data holds considerable treasure, but the crypto market currently lacks a sufficiently good "shovel" to dig it up, which is the solution RootData provides.

In the future, RootData will mainly focus on the design and development of this product, providing efficient, accurate, and comprehensive asset information to more users inside and outside the Web3 circle with institutional-level product standards, and offering corresponding tools for users to discover market dynamic signals within, becoming a new entry point into the Web3 world.