On-chain and off-chain user and marketing analytics for blockchain

Expert in data science and advanced analytics. Research areas are predictive analytics, deep learning, and recommendation systems.

Background

The NEAR Foundation is a Swiss-based non-profit, non-profit foundation that supports community-driven innovation with a specific focus on open source Web3 projects and tools in the NEAR Protocol.

In 2021, the NEAR Foundation shared a brief with Datrics to develop a set of analytical tools that could identify the most promising projects based on the protocol, support them, and award grants to facilitate the growth of the NEAR ecosystem. It was the beginning of a partnership that, in six months, would become the foundation for data-driven development and decision-making for the entire project ecosystem.

“We were looking for an experienced data development and analytics partner who could control the development and strategy process and deliver the exact result our business needed,” says David Weinstein, chief of staff and director of analytics at the NEAR Foundation.

The challenges

The task Datrics was given by the NEAR Foundation was to create end-to-end analytics that could measure ecosystem health and key success metrics. The analytical system was conceived with the ambitious objective of obtaining information on the entire portfolio of projects developed in the protocol. These included community activities, general contributions to the product, and user retention.

Here is a brief introduction to the features that Datrics had to offer:

  • Identification of the most promising projects at the start-up stage for additional development grants
  • Analysis for referral programs
  • Track user feedback and overall ecosystem satisfaction
  • Creating analytics funnels within on-chain and off-chain data

The ambitious task was further complicated by three serious challenges:

  • The entire technological landscape around the blockchain is not trivial. There are no pre-built analytics tools, as is the case with well-established web analytics. At this time, the development of blockchain is ongoing and there are many complexities associated with access to data. You can’t just extract the data and create a dashboard like you would in Google’s Data Studio. You need to find a way to connect and understand what data to access and analyze. It requires people with a high level of experience that are rare and expensive.
  • The data is in multiple different places on and off the chain. To create a smooth analysis funnel, you need to combine data from the web, the blockchain, and other systems, such as GitHub repositories. It can be tricky to link web behavior analytics and blockchain activity.

“In blockchain projects, you can’t just find an analogue of Google Analytics and set it up with a couple of clicks. Such systems simply don’t exist. Combining blockchain data with traditional web analytics is a major challenge that it is critical to thoughtful business development. Add to this the mandatory requirement for anonymity and data aggregation that protects the privacy of our users, and you begin to understand the complexity of the task,” says David Weinstein describing the challenge.

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The solution

It all started with a pilot period of 1.5 months. The NEAR Foundation and Datrics worked together to better understand if the partnership was right for both companies.

“It was a real surprise when, at the end of this period, Datrics managed to deliver more than other companies have committed to doing over the course of six months or more,” says David Weinstein.

During this brief period, Datrics managed to develop a comprehensive suite of analytics covering the key components of ecosystem success, including:

  • Number of smart contracts in active development (general metric of developer activity on the platform).
  • Number of developers (Mainnet/Testnet/GitHub; full time/part time).
  • The average number of daily confirmations.
  • Community activity on social networks and community channels such as Telegram or Discord.

The results

On average, the development of analytics within blockchain projects still leaves a lot to be desired. This means that systematic work with key marketing and growth metrics remains impossible. Blockchain analytics has traditionally lacked the consistency and scope of traditional web analytics.

The uniqueness of the analytics system developed for the NEAR Foundation lies in building a seamless connection between web activity and its chain component.

By combining their analysis of web and on-chain user activity, NEAR Foundation managers can identify and amplify weaknesses in user acquisition and effectively adjust retention strategy.

The entire suite of analytics is presented as a series of dashboards that enable custom filtering and provide insight into the success of the NEAR community as developers and users in general.

Today, the set of metrics is widely used across the enterprise to identify and nurture the most successful projects in the NEAR ecosystem. The data gained enables team members to identify strong product and marketing strategies and abandon weak ones by adjusting advertising budgets and prioritizing product development.

“After working with Datrics for more than six months, it is obvious that we made the right decision in terms of data analysts. We received unique results that helped NEAR improve their business vision and become better partners for our community. When it comes to For blockchain and web data, I cannot recommend Datrics highly enough. The guys have unique skills and experience in this market,” concludes David Weinstein.

© 2022 Volodymyr Sofinskyi

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