Maximize your use of Block Explorers

Disclaimer: This is not financial advice and should not be taken as such. This is merely an opinion article.

Introduction

Block explorers are apps or websites that allow you to view every block that has ever been created for that specific blockchain. You can even view your own transactions by utilising the transaction ID supplied when executing an event on the blockchain. In this way, block explorers are like a search engine!

They are an essential tool for anyone who wants to learn more about the blockchain, verify, confirm and troubleshoot transactions. As blockchains are public technology, anyone can access these, allowing you to interact directly with contracts.

A crucial part of blockchain is understanding how to extract the best data and activity from a block explorer or similar data provider. This can give you insider knowledge before major events occur.

How block explorers work

Block explorers work on top of historical nodes, which are computers that store and validate the entire blockchain. Block explorers index all blocks and transactions and store them in a separate database optimised for the explorer needs. This allows users to query data and providers to display it, in a fast and user friendly way.

The database for block explorers is usually a relational database that organises each block and its related information into specific tables with defined relationships. The block ID is used as a unique identifier to link everything together.

A structured query language is used to interact with the database. This allows engineers to extract key information in a consistent and fast way. Such as searching for the current gas price, or even putting your own address in and getting transactions for that address.

To save time and effort Wevr.ai has created an array of useful charts that make use of these queries to extrapolate information into an easy to read format. Otherwise, you will end up with thousands of tabs open trying to track average transactions if using a web based block explorer.

Figure 1: Average Gas Used + Average Transactions + Price USD (Ethereum) : Wevr

Using block explorers to track, confirm and troubleshoot transactions

Whenever you perform an action on the blockchain, such as creating a new token or sending money to a friend, you will receive a transaction ID. You can use this ID to look up your transaction on a block explorer and see its basic information, such as status, block, timestamp, value, from address, and to address. You can also track your transaction's progress, view other transactions in the same block, or monitor the address you are sending to or receiving from.

It is important to verify your transactions on the blockchain to make sure you are sending to the correct address and understand what the contract is doing with your transaction. This can help you avoid scams by tracking the previous transactions and activities of a contract you are interested in. If you see anything suspicious or unusual, you can steer clear of that contract.

Block explorers also allow you to read and analyse the code and functions of any smart contract on the blockchain. With some basic technical skills, you can check for scam contracts that have malicious or deceptive features, such as honey pots that prevent you from selling your tokens. This is similar to how contract checkers, such as Token Sniffer, work. They use a block explorer or an archive node to process contracts and check for essential or common scam functions.

Figure 2: Etherscan Example Block : Etherscan

Extracting data and activity from block explorers

To maximise your use of the blockchain, you can utilise block explorers to see contracts as soon as they are created. This can allow you to be the first one in on cutting edge technology. However, you also need to be careful and avoid falling for scams. It is very important to develop the skills to read and analyse contracts to figure out what is safe.

When investigating contracts on a block explorer you can see who holds what amount of a token. One way to maximise this, is by investigating wallets of people who own large portions of the token or those who acquired some at an early stage. This will help track down which wallets are consistently getting in early or making good decisions, these can then be tracked and followed.

Figure 3: New Contracts + Price USD (Ethereum) : Wevr

Market Insights and Trend Analysis

Another significant advantage of using block explorers is their ability to provide valuable insights into market trends and sentiment. By analyzing the data extracted from block explorers, investors and traders can gain a better understanding of market dynamics and make more informed decisions. For instance, tracking the number of new contracts created on a particular blockchain or the volume of transactions processed by a specific smart contract can help identify potential opportunities for growth or divergence. Additionally, block explorers can also be used to monitor the activity of specific wallets or addresses, providing valuable information about their investment strategies and market sentiment. By analyzing this data, investors can spot emerging trends and adjust their portfolios accordingly, while developers can use this information to create more targeted and effective marketing campaigns.

This level of insight can be particularly useful for identifying potential arbitrage opportunities, where the price of a token or asset differs between different exchanges or markets. By using block explorers to track market activity and identify discrepancies, traders can capitalize on these differences and make profitable trades. Furthermore, block explorers can also help investors monitor the sentiment and behavior of specific communities or groups within the blockchain ecosystem, providing valuable insights into market sentiment and trend analysis.

Developer Insights and Troubleshooting

Moreover, block explorers can also serve as a powerful tool for developers and entrepreneurs looking to build on the blockchain. By accessing the data and insights provided by block explorers, they can identify gaps in the market, spot emerging trends, and gain a competitive edge in developing new applications or services. Furthermore, block explorers can also help developers troubleshoot issues with their smart contracts, allowing them to debug and optimize their code more efficiently. This is particularly useful for complex contracts that require multiple inputs and outputs, where debugging can be a time-consuming and frustrating process.

By leveraging the power of block explorers, developers can create innovative solutions that drive value and growth on the blockchain ecosystem.

Conclusion

Block explorers are essential tools for anyone who wants to explore, understand, and interact with the blockchain. They allow you to access and discover the latest transactions, blocks, and smart contracts on any network. They also enable you to leverage your knowledge of the blockchain to your advantage, whether it's finding arbitrage opportunities, tracking token movements, or verifying contract code. By using block explorers, you can enhance your blockchain experience and avoid potential pitfalls.

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