Blockchain Explorers: What They Are and How They Work

In the ecosystem of cryptocurrency and blockchain, there are many cool tools that make working with digital assets easier and safer. One such tool is blockchain explorers. These are services that help track and analyze transactions across different blockchain networks. In this article, we will explain what they are, how they work, and which explorers are worth using in 2024.

What are blockchain explorers?

Blockchain explorers are web services that allow any user not just to view but also to analyze data in blockchain networks. These tools are fully open and accessible, enabling users to verify any transaction, block, or balance at an address. Essentially, they provide transparency and security for cryptocurrency transactions — which is extremely important for decentralized ecosystems. In the world of digital currencies, where every mistake can cost a lot of money, these services are not just a convenience but a necessity.

Explorers started to evolve with the growing popularity of Bitcoin. With their help, anyone can trace every transaction on the network, learn its details — from the time to the transferred amount. Importantly, all this data cannot be forged, as it is stored in a distributed network. For the crypto community, these services have become an essential part of the security and trust infrastructure.

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Why are explorers important for the crypto industry?

Explorers play a key role in the crypto industry for several reasons. And each year, these reasons become even more relevant.

• All transactions are available for verification at any moment. Want to find out if your funds arrived? Just enter the transaction hash, and you will see everything.
• Through explorers, it’s easy to track fraudulent schemes, such as fake wallets or illegal operations. This helps prevent financial losses.
• Transaction and block data provide a wealth of information for analysis and forecasting. Large crypto hubs have teams that use this data to predict trends and market changes.

Practical Example: Investigations into high-profile fraud cases in the crypto sphere, such as hacks on cryptocurrency exchanges or fund withdrawals from fake ICOs, always begin with data analysis in explorers. This allows not only identifying suspicious transactions but also tracing the movement of funds across various wallets. The faster this data is discovered, the easier it is to avoid losses.

A brief history of explorers

Blockchain explorers emerged in 2009, immediately after the creation of the first Bitcoin block, which was coded as the “genesis block.” From the first days, it was essential for transaction verification since the blockchain is a decentralized system, and to ensure trust, tools for public access needed to be created.

Since then, explorers have rapidly developed. In 2011, the first explorer for other cryptocurrencies, such as Litecoin, was launched, expanding options for users. By 2015, more complex explorers equipped with analytical tools began to emerge, allowing crypto users to conduct in-depth analysis of transactions and blocks. From 2020 onwards, a new wave of development started — multi-chain explorers, which can now track not just one but several blockchain networks simultaneously. This is particularly relevant in an era where more cryptocurrencies interact with each other within multi-network projects.

Now, as cryptocurrencies become increasingly integrated into the economy, the use of explorers has become a crucial element for protecting users and businesses. Explorers are becoming not just tools for verification but important components of the ecosystem that help maintain a high level of trust.

How do blockchain explorers work?

How do blockchain explorers work?

Blockchain explorers operate by searching for and displaying information stored within blockchain networks. A blockchain is a system of chains of blocks, each containing recorded transactions. Each block holds key information: who transferred the funds, the amount, and when it occurred. When a transaction occurs, the data about it is added to a new block, which then becomes accessible to everyone through the explorer. These services sync with blockchain networks and allow users to search for data on demand.

The working process:

1. You enter the transaction hash, wallet address, or block number.
2. The explorer searches the data in the blockchain through the network nodes.
3. You receive detailed information about the transaction: time, amount, sender, recipient.
   Importantly, explorers update data in real-time, providing accurate information about the current state of the blockchain.

Key functions and capabilities

Blockchain explorers offer a variety of useful features, including:

1. Transaction search — you can find a transaction by its hash or address.
2. Block viewing — information about each block, including the number of transactions and their details.
3. Transaction analysis — details of each operation, including fees and status.
4. Balance check — allows you to see the balance at any address on the blockchain.

Examples of popular explorers:

• Etherscan — for the Ethereum blockchain, supports searching transactions, addresses, contracts, and ERC-20 tokens.
• Blockchair — for Bitcoin, supports searching blocks, transactions, and addresses.
• BTCScan — focused on Bitcoin, helps check balance and view historical data.

How do data reach explorers?

Data enters explorers through the process of synchronization with nodes in the blockchain network. Nodes are computers that hold complete copies of the blockchain and update them with each new block.
Explorers use APIs (Application Programming Interfaces) to request current information from these nodes. Thus, data is displayed on users’ screens without needing to manually check each block or transaction. APIs enable quick and precise information retrieval.

Technologies behind the explorers

Explorers use several key technologies to ensure their operation:

1. API — this is the interface for data exchange between the explorer and the nodes.
2. Databases — are necessary for storing transaction and block information in a user-friendly manner.
3. Nodes — these are computers that support the network’s operation, storing copies of blocks and continuously updating them.

These technologies allow explorers to operate efficiently and provide information quickly.

Why use blockchain explorers?

Using blockchain explorers helps solve several important tasks:

1. Analyze transactions — tracking the flow of funds between addresses helps avoid losses and clarify the origin of funds.
2. Ensure security — allows tracking suspicious operations and preventing fraud.
3. Check network status — monitor new blocks, user activity, and the state of the entire network.

Explorers are an important tool for crypto users. They provide the ability to stay informed about all events and help protect their assets.

Transparency and openness of data

Transparency is one of the key characteristics of blockchain. All transactions are available for viewing, making the system open and protected from manipulation. Every user can check any operation that has ever occurred in the network.

Example: Suppose you want to find out who sent Bitcoins to your address. All you need to do is enter your address in the explorer, and the system will show from which wallet the funds came.

Transaction search: how does it work?

To find a transaction, simply enter its hash into the explorer’s search bar. In response, you will receive:

1. The date and time of the transaction,
2. The sender and recipient,
3. The amount transferred and other information (such as fees and status).

This function is important for verifying all operations in the blockchain, which is especially useful during audits or investigations of possible fraud.

Additional analytics features

Many explorers offer additional tools for deep data analysis:

• Graphs of fund movement — visualizations of data regarding the flow of funds in the network.
• Ranking of active addresses — tracking who transfers the largest amounts, to which addresses.
• Detailed block statistics — transaction counts, transfer volume, fee, and other important parameters.

These features help crypto analysts, traders, and investors monitor market conditions and identify potential trends.

Main types of blockchain explorers

Blockchain explorers can be classified into two main types depending on their functionality and area of application.

Universal explorers

Universal explorers support multiple blockchain networks, providing access to data about different cryptocurrencies and tokens. They are convenient for those who work with several blockchains and want to track transactions and blocks in one place. Example: Blockchair — supports Bitcoin, Ethereum, Litecoin, and other popular cryptocurrencies. These services offer flexible analysis tools such as hash rate charts, transaction statistics, and multi-network search.

Specialized explorers

Specialized explorers focus on a single blockchain network, providing more detailed information and analytics. Example: Bitcoin Block Explorer — focused solely on Bitcoin and offers detailed information about blocks, transactions, and wallets. These explorers may provide additional features such as network condition or hash rate analysis, which are useful for professionals working with a single cryptocurrency.

Popular blockchain explorers

Etherscan

Etherscan is one of the most popular explorers for Ethereum and ERC-20 standard tokens. It provides full access to transaction data, addresses, smart contracts, and tokens created on the Ethereum platform. With Etherscan, users can analyze blocks, check balances on addresses, and track the status of smart contracts. This service is actively used by both regular users and developers for testing and verifying contracts. In 2024, it remains the primary tool for working with Ethereum and is integrated with other services such as DeFi platforms and NFT marketplaces.

Blockchair

Blockchair is a universal explorer that supports not only Bitcoin but also other cryptocurrencies such as Litecoin, Bitcoin Cash, Dash, and others. This service allows searching for information on transactions, blocks, and addresses, as well as providing analytical tools for analyzing network statistics. For example, you can find detailed information on network hash rates and block distribution. In 2024, Blockchair continues to be one of the most popular tools for Bitcoin users and other cryptocurrency networks.

BscScan

BscScan is an explorer for Binance Smart Chain (BSC), which has become popular due to its support for DeFi projects and the NFT ecosystem. It allows tracking transactions, interactions with smart contracts, and token balances in the BSC ecosystem. BscScan supports tokens like BNB, BUSD, and many other BEP-20 standard tokens. Unlike Etherscan, which is focused on Ethereum, BscScan provides deeper analysis of assets within the Binance Smart Chain network, including verification of contract data and trading operations. This tool makes it easy to track funds and identify unusual transactions.

Advantages and disadvantages of blockchain explorers

Pros  

Transparency of data, availability, and openness of information

The blockchain itself is already an example of a decentralized and transparent system, and explorers provide direct access to data about transactions, blocks, and wallets. All operations can be verified at any time, which fosters trust in cryptocurrency networks. This is especially important for users who want to ensure the legitimacy of transactions, such as when receiving or sending funds. Explorers provide a complete picture of what is happening in the network, offering all data that cannot be forged.

Free access for any user

Most blockchain explorers are free, making them accessible to everyone. This is a significant advantage since users can track transactions, check balances, and explore blocks without having to pay. For example, Etherscan or Blockchair can be used without registration and any hidden fees, allowing anyone to obtain the necessary information without restrictions. Such access promotes greater user engagement in cryptocurrency networks and bolsters trust in the technology.

Convenience for transaction verification and monitoring network status

Explorers allow users to quickly track transactions, check wallet balances, and keep an eye on new blocks. This is convenient for anyone actively working with cryptocurrencies, whether traders or analysts. Additionally, through these services, one can monitor activity in the network: for instance, tracking large fund transfers or noting sudden changes in cryptocurrency volatility. This helps not only private users but also professionals who analyze trends and conduct market research.

Cons

Dependence on node operations

Explorers are directly dependent on the nodes of the blockchain network that store and update all data. If the nodes are overloaded, not updating, or under attack, it can slow down the explorer’s operation. In such cases, users may experience delays in information display or a lack of current data. This is especially critical when urgent information analysis is required, like during fraud investigations or monitoring large transactions.

Complexity for beginners

While many explorers are intuitive for experienced users, beginners sometimes find it hard to navigate all the functions. For instance, finding the necessary transaction by hash, understanding how to read block data, or using filters for in-depth analysis requires some level of experience. For newcomers just starting with cryptocurrencies, this can be a problem, and they may feel lost without proper guidance.

Limited analytical tools for deep analysis

Explorers typically provide basic information about transactions, blocks, and addresses, but their analytical capabilities are limited. For example, they do not always include advanced tools for trend forecasting or real-time market analysis. Professional crypto analysts often use additional tools or specialized services to conduct more accurate and comprehensive research that standard explorers do not offer. For in-depth analytics requiring detailed statistics or forecasts, additional resources are frequently needed.

Blockchain explorers and security

Blockchain explorers play a key role in ensuring the security of cryptocurrencies and investigating fraud. They help track all transactions in the network, analyze where funds are going, and identify suspicious operations. These services are invaluable to law enforcement, researchers, and users, especially when it comes to recovering stolen funds or investigating major hacks.

How this works:

• Tracking funds. If money is stolen from a cryptocurrency exchange, one can use the explorer to understand where it went. By entering the transaction hash or wallet addresses, one can trace the path of the cryptocurrency through blocks and wallets, identify “hot” wallets, and even block funds at later stages.
• Practical example. Recall major hacks such as Mt. Gox in 2014 or KuCoin in 2020. Thanks to explorers, it was possible to trace the stolen funds by documenting the addresses and transactions they passed through.
• Detecting fraud. Explorers allow seeing suspicious operations — large transfers to unfamiliar addresses or hidden “mixing” schemes, where funds pass through numerous wallets and services. This helps security specialists notice and prevent fraud in a timely manner.

Security aspects:

• Counteracting internal threats. Explorers help track the actions of cryptocurrency exchange employees, preventing possible abuses. For example, they can be used in Binance to track unusual activities and respond promptly to any threats.
• Audit of transactions and smart contracts. Explorers assist in conducting audits and identifying vulnerabilities in code. When inspecting a smart contract, one can notice suspicious changes, allowing for the prevention of an attack even at the planning stage.

The future of blockchain explorers

The future of blockchain explorers is closely tied to the integration of artificial intelligence (AI), which will be used to enhance analytics and forecasting. Even today, AI helps accelerate the processing of large volumes of data and improve the accuracy of predictions. In the coming years, such innovations will enable deeper analysis of cryptocurrency flows, uncover patterns, and predict trends based on transaction history and blockchain activity.

Trend forecasting using AI

AI will be able to predict market behavior in real-time by analyzing transaction data and activities within the network. This will help traders react quickly to changes in asset prices and make more informed investment decisions.

Enhancing security with AI

AI systems will automate the detection of anomalies in network activity. For example, they will be able to identify sharp changes in transaction volumes or suspicious addresses. This will reduce the risks of fraud, as AI will be able to detect new attack patterns that remain unnoticed by regular users.

Data visualization optimization

With AI, it will be easier to recognize hidden connections between addresses, blocks, and transactions. This will lead to the creation of more understandable and interactive graphs, which will be beneficial for both newcomers and experienced analysts. Such tools will allow users to perform deep data analyses more easily and make decisions based on that information.

Machine learning for market analysis

Additionally, explorers will integrate machine learning to automatically recognize market trends. This will help not only traders but also developers and investors predict volatility and analyze smart contracts in real-time. Such tools will make the market more predictable and stable, minimizing the risks of sharp fluctuations.

Integration of security and transparency

Ultimately, explorers with AI will not only improve data analysis but will also become an important part of the security system in crypto networks. They will predict and prevent threats, ensuring the transparency and security of cryptocurrency operations.