📖 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.

First Expense Transaction: The inaugural transaction executed by a wallet or account. It signifies the initiation point of activity within the account or wallet, often serving as a fundamental marker for analysis, especially in understanding the account's or wallet's historical engagement.

First Funding Transaction: The inaugural transaction received by a wallet or account. It signifies the initiation point of being able to execute transactions by the account or wallet.

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

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.

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 on-chain 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 on-chain activity (i.e. a Fresh Wallet)
  • 100: Denotes active and consistent participation in on-chain 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 on-chain 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.