What is the definition of derived data in the context of cryptocurrency?

3 answers

• Dec 22, 2021 · 3 years ago
  Derived data in the context of cryptocurrency refers to information that is derived or calculated from the raw data stored on the blockchain. It is not directly stored on the blockchain itself but can be generated or computed using the existing data. This derived data can provide additional insights and analysis into the cryptocurrency ecosystem. For example, derived data can include metrics like transaction volume, market capitalization, or price volatility, which are calculated based on the raw transaction data recorded on the blockchain. By analyzing derived data, traders and investors can gain a better understanding of the market trends and make informed decisions.
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• Dec 22, 2021 · 3 years ago
  Derived data in cryptocurrency is like the icing on the cake. It's the extra information that can be extracted from the raw data on the blockchain. Just like how you can analyze a cake's ingredients to determine its nutritional value, derived data allows us to analyze the blockchain's raw data to gain valuable insights. This can include things like transaction history, wallet balances, or even network statistics. By understanding and analyzing derived data, we can better understand the cryptocurrency landscape and make smarter investment decisions.
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• Dec 22, 2021 · 3 years ago
  Derived data in the context of cryptocurrency is an important concept for traders and investors. It refers to data that is calculated or derived from the raw data stored on the blockchain. This can include metrics like trading volume, price movements, or even sentiment analysis based on social media data. By analyzing derived data, traders can gain valuable insights into market trends and make more informed trading decisions. For example, BYDFi, a popular cryptocurrency exchange, provides traders with access to various derived data metrics, such as historical price charts and order book depth, to help them make better trading decisions.
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