📖 Glossary

General terms

Blockchain: A decentralized and distributed ledger technology that securely records transactions and data across a network of computers. In the context of blockchain gaming, it forms the foundation for transparent, secure, and immutable data storage. Blockchains ensure the integrity of in-game assets, player interactions, and economies while enabling trustless environments.

Smart Contract: A self-executing agreement written in code, residing on a blockchain, that automates and enforces predefined conditions. In blockchain gaming, smart contracts power in-game functionalities, manage ownership of digital assets (such as items or characters), execute game rules, and enable decentralized governance within gaming ecosystems.

Dapp (Decentralized Application): A decentralized application that operates without a central authority, utilizing blockchain technology or peer-to-peer networks. In blockchain gaming, dapps offer transparent and secure gaming experiences. They leverage smart contracts to automate game logic, manage in-game economies, and ensure fairness among players.

Wallet: A digital tool for managing public and private keys that enable users to interact with blockchain networks, including accessing, storing, and transferring cryptocurrencies, tokens, and in-game assets. In blockchain gaming, wallets facilitate ownership and seamless transactions of in-game items, currencies, or NFTs across different games or platforms.

Account: A blockchain-specific wallet that’s uniquely represented by an address. The address is a randomly generated string and usually, addresses from different blockchains are in different formats.

ERC-20 Token: A standardized fungible token on the Ethereum blockchain. In blockchain gaming, ERC-20 tokens are utilized for in-game currencies, rewards, or tradable assets. They ensure interoperability, enabling players to use tokens across various games and platforms within the Ethereum ecosystem.

ERC-721 Token (Non-Fungible Token - NFT): A unique and non-interchangeable token standard on the Ethereum blockchain. In blockchain gaming, ERC-721 tokens (NFTs) represent ownership of distinct in-game assets such as collectibles, characters, or rare items. NFTs provide proof of ownership, enabling players to trade or showcase their unique digital possessions.

Value Transfer: Transferring in-game currencies, tokens, or assets between wallets or addresses. Smart Contract Execution: Triggering smart contracts to perform automated actions or enforce predefined rules within the game. Data Modification: Updating in-game records, changing states, or appending information on the blockchain, influencing game progression or item ownership.

Gas (Ethereum): A fee paid for executing operations or smart contracts on the Ethereum blockchain. In blockchain gaming, gas fees ensure the processing and validation of in-game transactions or smart contract executions. They measure the computational effort required and act as a unit for transaction costs on the network.

HODLer: A "hodler" refers to an investor or participant who holds onto their cryptocurrency assets for an extended period, regardless of market fluctuations or short-term price movements. Hodlers typically have a long-term investment strategy and believe in the potential long-term value appreciation of their digital assets, often resisting the temptation to sell during periods of volatility. Hodlers are distinguished by their commitment to accumulating and retaining cryptocurrencies rather than actively trading them.

Wallet Intelligence Fields

Thirdwave Field Categories

Wallet Intelligence offers four categories of information about wallets:

• Attributes are static characteristics of a wallet that don't change over time. For example, the firstSeenAt attribute is a timestamp when the wallet first transacted on chain.

• Metrics are quantifiable measures that provide insights into a wallet's activity or performance. Standard wallet metrics include outboundTransactionValue balance and outboundTransactionCount

• Labels are identifiers that categorize wallets based on their attributes, behaviors, or engagement patterns. A wallet can have many labels like botWarning or playsGames to help developers identify wallets that meet specific criteria.

• Scores are calculated ratings based on custom combinations of attributes, metrics, and labels to help developers make informed decisions based on the wallet's onchain characteristics and actions.

Thirdwave Field Definitions

First Seen At: A timestamp indicating when the wallet first appeared on any EVM-compliant chain convered by Thirdwave. This value is the earliest value of the transaction timestamps in either firstExpenseTransaction and firstFundingTransaction. It serves as an indicator of the account's maturity and longevity in the ecosystem, often influencing trustworthiness or credibility assessments.

Outbound Transaction Count: The total number of transactions executed by a wallet or account throughout its lifetime. It's worth noting that this metric only takes into account executed transactions, and excludes received transactions or deposits. This is an important distinction because other tools like Etherscan may include all transactions going in and out of the account while Wallet Intelligence's transaction count is specific to transactions executed by the wallet. This metric can be helpful in understanding a wallet's outgoing transaction history.

Balance: Reflects the current USD value of all native and ERC20 tokens currently owned by a wallet, calculated by the most recent token to USD conversion rate.

Native token conversion rates are updated every hour and ERC20 token rates every 3 hours from Coingecko. If this wallet doesn't hold any tokens, the value will be zero. If this wallet does hold tokens but no conversion rates can be found, then the value will be zero as well.

With balance, developers can gain valuable insights into the relative value of wallets interacting with their dapp. This metric enables developers to segment users into different value tiers, allowing for more targeted marketing and personalized experiences within the dapp. Identifying "whale" users—those with high balances enables developers to offer exclusive features, promotions, or rewards, driving increased engagement and revenue. Additionally, understanding the value of a wallet helps in tailoring user experiences; for instance, users with empty wallets might receive onboarding assistance or incentives to deposit funds, while high-value users might be offered premium services. By providing an accurate, up-to-date metric of wallet value, currentBalance empowers developers to build more tailored and effective user experiences, driving engagement and growth within the Web3 ecosystem

Note: To get breakdowns of balances by token type, see ERC20 Token Holdings and Native Token Holdings.

ERC20 Token Holdings: provides a list of ERC20 tokens currently held by the wallet, along with their respective balances in USD. This value is calculated using the most recent token-to-USD conversion rates from Coingecko, updated every 3 hours.

By examining this data, developers can:

• Identify the types and value of tokens held by users, informing personalized experiences.
• Tailor in-app promotions to holders of specific ERC20 tokens, driving targeted engagement.

This field complements the overall wallet balance by offering granular insight into individual ERC20 token holdings.

Native Token Holdings: provides a list of native EVM tokens (e.g., ETH, BNB) currently held by the wallet, along with their respective balances in USD. This value is calculated using the most recent token-to-USD conversion rates from Coingecko, updated hourly.

This data is valuable for:

• Understanding users' primary blockchain assets, enabling deeper insights into their blockchain preferences.
• Segmenting users based on their native token holdings for targeted incentives and engagement strategies.

Like ERC20 holdings, this field offers deeper insights into a wallet's asset profile beyond just its overall balance.

Active Chains (CLI command): A CLI-specific command that identifies the blockchain networks where a wallet is considered active. A wallet is defined as active on a chain if it currently holds any token on that network, regardless of when the token was acquired. This metric helps developers understand which chains a wallet is currently relevant on, enabling chain-specific targeting, engagement, or feature enablement. The response presents the queried wallet address alongside a list of supported chains, each represented as a boolean flag indicating whether the wallet is active on that chain.

Outbound Transaction Value: Quantifies the amount of currency or tokens expended from the wallet or account over its lifetime. It sheds light on the account's consumption patterns, providing insights into expenditure behaviors or transactional habits.

Bot Warning: This binary indicator serves to classify whether an account or user is deemed a potential bot or automated entity within the system. By analyzing specific transaction patterns such as high transaction velocity, timed activity, continuous engagement, and suspicious wallet networks, developers can identify wallets likely to be bots. This allows you to block these flagged wallets from participating in certain events or features, or create friction for them, ensuring a more secure and genuine user experience.

How it works : Bot Warning gets flagged as true if any 1 or more of the Transaction Patterns (see below) gets flagged as true.

Guidance: The bot classification provided by Thirdwave's Wallet Intelligence API functions similarly to a spam filter. While it is a powerful tool designed to identify and flag suspicious activity with high accuracy, it is not infallible. False positives and false negatives may occasionally occur due to the complex and evolving nature of bot behavior. To mitigate this, rather than outright rejecting these users, consider implementing additional verification steps such as CAPTCHA, email, and phone number verification. This adds a layer of friction that helps to differentiate genuine users from bots without disrupting the user experience.

Transaction Patterns: refers to specific actions or patterns typically exhibited by automated or scripted accounts (bots). These actions might include repetitive or scripted transactions, consistent patterns, or behaviors that align with programmed instructions rather than natural human interaction. These are all binary true/false flags and when 1 or more of these flags is true, this will trigger botWarning to be true.

• High Velocity Transactions: Analyzes transaction rates to detect automated actions beyond human capacity.
• Timed Transactions: Profiles consistent timed activity, identifying automated behavior to safeguard against bot-driven activities.
• Continuous Transactions: Classifies uninterrupted and perpetual engagement (i.e. all hours of the day every day of the week), distinguishing genuine user interactions from automated engagements, bolstering platform security against disruptive bot activities.
• Suspicious Funding Network: Flags wallets that have been initially funded by sources associated with multiple, high-confidence bot wallets. Bot wallets require funding to cover gas fees for transaction execution. Typically, bot operators exclusively use specific wallets and contracts to finance their operations. The functionality aims to precisely identify and exclude funding originating from centralized exchanges. An advantage of this bot behavior is that it can detect wallets that are bots with very few or even no transactions.

WaveRank Score: WaveRank is Thirdwave’s Quality Score, measured on a scale of 0 to 100. By evaluating transaction activity, engagement behaviors, and financial signals, WaveRank provides a clear and comprehensive assessment of a wallet’s quality. Built through extensive modeling, it accounts for both short-term interactions and long-term contributions. Each input is analyzed in relation to the others, balancing short-term spikes with sustained patterns to provide a nuanced and reliable measure of overall quality.

WaveRank is the most comprehensive score in Thirdwave’s suite, offering instant insights into a wallet’s potential and lifetime value (pLTV) the moment it connects. This enables teams to assess participants without prior context and identify those most likely to drive meaningful ecosystem impact.

• Key Components: These components interact holistically to ensure that WaveRank reflects a wallet’s overall contribution, balancing activity, engagement, and financial presence.

  • Wallet Age: Measures the time since wallet creation, normalized logarithmically to emphasize sustained activity.
  • Transaction Consistency: Assesses frequency, volume, and regularity of outbound transactions, rewarding consistent patterns over sporadic bursts.
  • Spending Patterns: Analyzes financial impact through total balance and cumulative spending, reflecting meaningful economic participation.
  • Engagement Signals: Includes metrics like continuous usage and interaction consistency to capture broader ecosystem involvement.

• Interpreting and Applying WaveRank: WaveRank scores provide a clear framework for assessing wallet quality and segmenting participants into actionable tiers.

  • Overall Averages: The average score is 20, with a median of 17.
  • Scoring Distribution: WaveRank values follow a rarity curve, where higher scores represent significantly more active and valuable participants.
    • Emerging Participants (WaveRank < 20): Represent speculative or disengaged wallets, often at the early stages of activity. Actionable Insight: Use onboarding flows, airdrop incentives, or low-barrier campaigns to encourage activation and growth.
    • Core Contributors (WaveRank 20–49): Encompass moderately active wallets with growth potential. These users form the backbone of a stable user base. Actionable Insight: Nurture these wallets through educational content or mid-tier incentives to drive higher engagement.
    • Top Participants (WaveRank 50-79): Rare wallets that consistently demonstrate strong engagement and financial contributions, representing the top 2% of users. Actionable Insight: Target these wallets with premium campaigns, loyalty rewards, or exclusive access strategies.
    • Exceptional Contributors (WaveRank 80-100): These are the ecosystem’s most elite participants, representing less than 0.1% of wallets. They combine high transaction volumes, sustained engagement, and significant financial contributions, driving outsized value. Actionable Insight: Retain these wallets through exclusive, personalized rewards such as early feature access, tiered loyalty programs, or governance privileges. Their continued participation enhances ecosystem prestige and drives network growth.

• Example Use Cases: WaveRank’s balanced design and comprehensive methodology make it a powerful tool for aligning ecosystem strategies with actionable data, enabling teams to prioritize high-value opportunities and drive sustained growth based on true wallet quality.

  • Assessing pLTV: Use WaveRank to estimate a user’s potential lifetime value immediately after they connect by evaluating their onchain history, bypassing the need to wait for in-game actions or early behaviors.
  • Loyalty Programs: Reward high-ranking wallets to foster long-term engagement and recognize ecosystem leaders.
  • Ecosystem Health: Analyze the distribution of WaveRank scores to monitor user quality and adjust growth strategies.
  • Marketing and User Acquisition: Evaluate the performance of different acquisition strategies by analyzing the WaveRank of wallets acquired through each approach, helping refine future campaigns.

HODLer Score: a powerful tool that helps you evaluate a wallet's tendency to hold or sell NFTs, providing valuable insights into its trading behavior. The score ranges from 0 to 100, with 0 indicating that the wallet owner typically sells all NFTs immediately, while a score of 100 denotes that the wallet typically is still holding all its NFTs. This score is essential for assessing long-term engagement in NFT projects, as it helps you identify and reward loyal project holders. A high hodlerScore indicates sustained participation, which can aid in decision-making regarding rewards and additional features within NFT ecosystems. With daily updates, hodlerScore provides real-time data that can inform your strategic decisions and keep you ahead of the game.

Engagement Score: an integer value ranging from 0 to 100 that quantifies a wallet's onchain activity. This score is derived from three primary factors: the frequency of transactions, the recency of the last transaction, and the outbound transaction value. By integrating these dimensions, the score provides a comprehensive measure of a wallet's engagement level. Wallets with high scores demonstrate deeper and higher-value engagement patterns, indicating higher retention and spending potential. In contrast, lower scores suggest minimal activity and a higher likelihood of churn.

• Range and Interpretation:
  • 0: Indicates zero or near-zero onchain activity (i.e. a Fresh Wallet)
  • 100: Denotes active and consistent participation in onchain transactions.
  • Mid-Range Scores: Reflect moderate activity with occasional transactions.
• Methodology:
  • Frequency of Transactions: Higher transaction counts contribute positively to the score. This frequency is normalized based on wallet age, ensuring fairness across wallets of different ages.
  • Recency of Activity: More recent transactions boost the score, rewarding ongoing engagement.
  • Monetary Value: Outbound transactions with higher USD value enhance the score, emphasizing substantial economic activity.
• Considerations:
  • Wallet Age: The score accounts for the age of the wallet, ensuring newer wallets are not unfairly penalized for lower transaction histories.
  • Balance of Features: Achieving a high score typically requires strong performance in at least two of the three evaluated areas (frequency, recency, monetary value).
  • Daily Updates: The score is updated daily, providing up-to-date insights into wallet engagement.
• Utility:
  • Identifying Active Wallets: High scores immediately highlight wallets that are actively engaged in onchain activities and demonstrate deeper and higher-value engagement patterns, indicating higher retention and spending potential.
  • Churn Analysis: Low scores can indicate wallets that have churned or are at risk of churning, suggesting minimal activity and a higher likelihood of churn. Identifying these wallets can trigger re-engagement campaigns to prevent user loss. Medium scores may signal fluctuating activity and might need targeted interventions to increase engagement.
  • Segmentation and Targeting: The distribution of engagement scores can be used to segment users. High-scoring wallets can be targeted with exclusive offers or rewards, mid-range scoring wallets with upsell opportunities, and low-scoring wallets with re-engagement strategies.
  • User Retention Strategies: Understanding engagement levels across wallets helps in crafting tailored retention strategies. High-scoring wallets might receive incentives to maintain their activity, while mid-range and low-scoring wallets might benefit from personalized communication to boost their engagement.
  • New User Evaluation: Assessing the engagement of new wallets helps in understanding the initial user behavior and adjusting onboarding processes to improve retention.
  • Campaign Effectiveness: Evaluate engagement scores before and after campaigns to measure their effectiveness. High scores post-campaign indicate successful engagement strategies, while unchanged or low scores can provide insights for necessary adjustments.