🧠Core Concepts

Understanding the following core concepts is essential for effectively utilizing the Nansen API.

Onchain Data & Blockchain Analytics

Onchain data refers to all information immutably recorded on a blockchain's distributed ledger. This includes transaction details (sender, receiver, amount, time), smart contract interactions, token transfers, and more.

Blockchain analytics involves processing, aggregating, decoding, and interpreting this raw onchain data to uncover patterns, trends, and insights. Nansen specializes in this process, providing tools and data feeds—accessible via the API—that transform raw ledger entries into understandable metrics and analytics. The API grants access to various forms of this processed data, such as token balances, transaction histories, DEX trades, smart money insights and exchange flows.

Nansen's Data Enrichment: Labels, Entities, and Smart Money

A key aspect of Nansen's value proposition lies in its data enrichment capabilities, which add crucial context to raw onchain data. These concepts are fundamental to understanding the unique insights available through the API:

• Labels: Nansen assigns proprietary, human-readable labels to blockchain addresses based on extensive research and heuristics. These labels identify the real-world entities or types of actors controlling an address, such as "Binance" (exchange), "a16z" (VC fund), "NFT Whale," "MEV Bot," or specific DeFi protocols. With over 300 million addresses labelled 1, this system allows users to move beyond pseudonymous addresses and understand the behavior of known market participants.

• Entities: Nansen groups related addresses belonging to a single organization or protocol into an "Entity." The API provides endpoints specifically for analyzing these entities, such as tracking their aggregate token flows or historical activity patterns. This allows for a higher-level analysis of institutional or protocol-level behavior.

• Smart Money: A curated list of the top 5000 highest-performing wallets ranked by realised profit, winrate, and strong performance across market cycles. The API includes dedicated endpoints to track the token flows associated with these "Smart Money" addresses, offering potential insights into sophisticated market movements and sentiment.

These enrichment layers—Labels, Entities, and Smart Money—are the mechanisms through which Nansen delivers its unique analytical edge. They enable users to interpret onchain events within a framework of known actors and market dynamics, facilitating more informed analysis and decision-making.