Celsius, 3AC demonstrated why financial infrastructure should move on-chain

Instead of operating in the dark, more financial industry players should move their transactions to the blockchain, where every move is audience.
Opinion
While mainstream coverage of cryptocurrency has been overwhelmingly negative following the collapse of the Terra ecosystem, the bankruptcy of Celsius, and the fall of Three Arrows Capital, these events ultimately show why more of the financial system should operate on-chain, bringing more transparency and information to market participants.

In all three cases, the damage was caused and exacerbated by opaque off-chain entities. And while the reason for the trio of events is significant, it has also done considerable damage to the industry's overall reputation. These events made it clear that the industry needed more transparency, which can be made possible with more on-chain data and data analytics tools.

Proponents of blockchain technologies often tout their transparency: networks are treasure troves of open, incorruptible financial data that allow economic activity to be measured with an unprecedented degree of accuracy. This new technology creates immutable records of all transactions where investor sentiment and behavior can be measured through data collection and study.

On-chain data gives us insight into market events

On-chain data analysis has become essential in the blockchain space. By reviewing transaction data and crypto wallet balances, we can gather valuable information about market conditions. This is crucial for participants and investors trying to plan their next move. Not only does the data tell the story of the market, but it allows every investor to make an informed decision before initiating a trade or interacting with the market.

Related: $10 Billion Hedge Fund Failed With Fugitive Founders

The importance of analytics platforms has become more evident than ever: they are key to learning from our mistakes and understanding weaknesses in the blockchain ecosystem. The events that led to

Crypto Aug 23, 2022 0 62 Add to Reading List

Celsius, 3AC demonstrated why financial infrastructure should move on-chain

Instead of operating in the dark, more financial industry players should move their transactions to the blockchain, where every move is audience.

Opinion

While mainstream coverage of cryptocurrency has been overwhelmingly negative following the collapse of the Terra ecosystem, the bankruptcy of Celsius, and the fall of Three Arrows Capital, these events ultimately show why more of the financial system should operate on-chain, bringing more transparency and information to market participants.

In all three cases, the damage was caused and exacerbated by opaque off-chain entities. And while the reason for the trio of events is significant, it has also done considerable damage to the industry's overall reputation. These events made it clear that the industry needed more transparency, which can be made possible with more on-chain data and data analytics tools.

Proponents of blockchain technologies often tout their transparency: networks are treasure troves of open, incorruptible financial data that allow economic activity to be measured with an unprecedented degree of accuracy. This new technology creates immutable records of all transactions where investor sentiment and behavior can be measured through data collection and study.

On-chain data gives us insight into market events

On-chain data analysis has become essential in the blockchain space. By reviewing transaction data and crypto wallet balances, we can gather valuable information about market conditions. This is crucial for participants and investors trying to plan their next move. Not only does the data tell the story of the market, but it allows every investor to make an informed decision before initiating a trade or interacting with the market.

Related: $10 Billion Hedge Fund Failed With Fugitive Founders

The importance of analytics platforms has become more evident than ever: they are key to learning from our mistakes and understanding weaknesses in the blockchain ecosystem. The events that led to