How it works
Because the ledger is public on many networks, analysts can study activity without relying solely on company reports. Interpretation still requires care because addresses do not map neatly to real-world users.
What to check
Use network-native explorers or reliable indexed datasets and define the metric precisely. Exchange wallets, internal transfers and automated contracts can distort simple counts.
- Define each metric precisely
- Avoid equating addresses with users
- Account for exchanges and bots
Limits and risks
Transparent data is not automatically meaningful data. One entity can control many addresses, and high transaction counts can be generated by bots or low-value activity.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.