Clocks to Blocks: Fine Tuning Blockchain Analytics
A fascinating engineering marvel of Bitcoin is its endogenous (unit within the blockchain) accounting system - typically referred to as the Unspent Transaction Output (UTXO). The UTXO model is designed to allow swift monetary messaging, whilst ensuring the highest quality standards of safety between these P2P blockchain transactions. Today's article will dive into the mechanics of this system, and how analysts utilize the digital footprints to build behavioral- and economic -studies.
This article is written in light of the recent findings by David Puell and James Check. Who've introduced a new methodology, which they termed Cointime Economics. This is a novel analytical approach that addresses some errors found in the conventional time extraction method. To truly and fully understand their reasoning to employ these findings, we’ll have to start at the beginning - so peeling down the layers of these blockchain mechanics. In the article I’ll start off by discussing some critical structural components of the blockchain, which will gradually introduce the coin time frameworks.
For the full article: HERE
The article covers the following topics:
- We talk about UTXO modelling,
- UTXO mechanics
- Axioms of time (inherent ways to model time via the blockchain)
- Network Interpretations
- Lastly - why you would want to model time- and value -based components using block height
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