In the past few days, CoinMarketCap has been on everyone’s lips in the crypto community. After Binance announced the purchase of the website, in a deal that, although secret, was rumored to be several hundred million dollars. For this reason and because of the importance of CoinMarketCap as a source of information for the crypto world, we will discuss in today’s article how CoinMarketCap receives its data.
Information in the crypto world
Obtaining reliable information in a decentralized world like that of cryptocurrencies can be a complicated task. After all, there are no regulators or governments within the crypto community that can provide information about the economic situation.
So we have to trust the information of the different actors about their business.
However, precisely this need for trustworthy data and the lack of a centralized institution that can offer it have created a market for private actors to provide the crypto community with reliable information about their status. .
And among the private companies that offer their services as data collectors and crypto market analysis, CoinMarketCap stands out from the others.
This is due to the quality of the information that this page offers. It is probably the most current that can be found across the entire crypto community. What makes it an asset of great value for traders, miners, companies and generally everyone who participates in this world.
How does CoinMarketCap get your data?
When CoinMarketCap has gone from hands to binance conglomerate, it’s a good time to talk about how this website manages to retrieve the data and stay up to date.
Even in an environment of radical decentralization, as is the case in the world of crypto assets.
And the truth is that the CoinMarketCap method uses the same decentralization in their favor. Directly request the Crypto World exchanges to send real-time updates every minute about what is happening on their platforms.
These then go through automatic verification processes thanks to the use of algorithms from CoinMarketCap. The confirmed data is finally displayed on the website.
Ultimately, the exchanges are motivated to participate in this process and provide real data due to the importance of CoinMarketCap.
Well, no exchange platform wants to be known for being dishonest by providing incorrect or no data. This could scare potential users and negatively impact the business.
Thanks to the way CoinMarketCap receives its data and its methods of quantifying the information, the site becomes a fundamental source.
Just like a player who is important for the functioning of the crypto world, which ultimately makes Binance’s takeover an event that needs to be followed up.