Even those who aren’t steeped in the finance industry can probably call up a visual image of an old-school stock ticker, generating lengths of white tape to help investors stay on top of stock market transactions and developments. Today, these have been supplanted by up-to-the-moment digital trackers. In similar fashion, the crypto industry has blockchain explorers, which offer users real-time tracking of not only their own transactions, but also everything happening on the blockchain.
Providing invaluable information for both individuals and companies, blockchain explorers bolster insiders’ argument that cryptocurrencies can be a secure and trustworthy option for investments and digital transactions. Below, 11 members of Cointelegraph Innovation Circle discuss some of the benefits blockchain explorers offer to all users.
They place all users on an equal footing
Blockchain explorers put all users on an equal footing by allowing each user to access the same information, at their convenience. Decentralized finance must expose numbers so users can independently verify the units of currency exchanged. I’m more interested in using blockchain to send and receive other types of data. Even if the data is encrypted, blockchain explorers can serve the same purpose of asynchronous coordination. – Stephanie So, Geeq
They’re a gateway for transparency
Blockchain explorers are a gateway for transparency and auditability. As an individual, you are able to independently verify what companies are doing as well as their claims. As a company, you can rest assured no one can point fingers at you, claiming foul play. It is a win-win situation, and core to Satoshi’s vision to not trust, but verify. – Tiago Serôdio, Partisia Blockchain
They allow investors to monitor how startups are using funds
For startups, blockchain explorers are a game-changer. Web3 makes it easy to hold projects accountable after they raise money, because investors can monitor how the projects are spending funds in real time. By allowing the public to directly follow along instead of relying on a few disclosures and audits, it becomes much harder for startup founders to hide suspicious behavior. – Wolfgang Rückerl, ENT Technologies AG
They give users more power
In the market, some of the top blockchain explorers, like Etherscan, make transactions more transparent, empowering users with information. These explorers let users track funds, access transaction details and interact with smart contracts, giving users more power over their decisions on the blockchain. – Abhishek Singh, Acknoledger
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They promote trust in the crypto ecosystem
Blockchain explorers provide real-time transaction tracking. They verify smart contracts, trace funds and detect suspicious activity. Network metrics and transaction history reveal a blockchain’s health and authenticity to both individuals and companies. These tools promote crypto ecosystem trust, fraud prevention and informed decision making. – Arvin Khamseh, SOLDOUT NFTs
They can help with the detection and investigation of fraudulent activities
Blockchain explorers offer transparency and a plethora of network information by displaying transaction and block data from a specific chain. Users can view sender and recipient addresses and transaction amounts and track real-time statuses and confirmations. This transparency can help with the detection of fraudulent activities, like wash trading, and provide necessary information for investigations or even compliance audits. – Anthony Georgiades, Pastel Network
They allow the tracking of any transaction in real time
One of the most crucial insights blockchain explorers provide is transaction transparency. Both individuals and companies can track any transaction on the network in real time. This transparency enhances trust, allows for auditing and helps users monitor for fraudulent activities, contributing to a more secure environment. – Tomer Warschauer Nuni, Kryptomon
They can help users validate the authenticity of a project
If you look at a blockchain explorer, it won’t tell you who owns “Wallet # 0x1234abcd.” However, if you see that too many transfers are occurring between a contract address and that wallet (or a particular set of wallets), you will begin to wonder if people are actually supporting the project, or if it’s just a few people trying to make some activity appear on the chain. – Zain Jaffer, Zain Ventures
They provide detailed transaction diagnostics
Despite the common misconception that crypto is anonymous, blockchain explorers provide detailed diagnostics for participants to verify any transaction that has occurred on a network. Combined, the data offers a picture of how value is being stored and transferred among its users. Viewed by the right eyes, these tools reveal the inner workings of key infrastructure and the overall health of a chain. – Oleksandr Lutskevych, CEX.IO
They help decision makers capitalize on emerging markets
Blockchain explorers provide real-time transaction insights and deliver crypto credibility. For instance, a company might spot a surge in transactions for a specific cryptocurrency. By examining the associated addresses, it can identify a new online marketplace that’s accepting that cryptocurrency, indicating growth and potential partnerships. This helps decision makers adapt their strategies and capitalize on emerging markets. – Vinita Rathi, Systango
They’re useful tools for conducting due diligence
Blockchain explorers can be dependable tools for conducting due diligence if you have a keen eye. The proof is in the pudding for a Web3 project, which can promote or shill all it wants. We can use blockchain explorers to verify online claims and watch for potentially fraudulent activity, as they follow every transaction on the network in real time. – Sheraz Ahmed, STORM Partners
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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