Nuant Data Stream: Advancing Data Indexing and Analytics for Arbitrum

Published on:
August 15, 2023
Reading time:
5min

Highlights

• Nuant's Advanced Data Delivery: Nuant introduces an infrastructure that ensures ultra-low latency data retrieval for Arbitrum, accommodating the real-time data requirements of DeFi protocols.

• Arbitrum's Edge in Data Processing: While Arbitrum sets new performance benchmarks for decentralized applications, Nuant's technology is crafted to enhance Arbitrum's data acquisition and reduce potential bottlenecks.

• DEX Monitor's Features: Nuant's DEX Monitor overcomes latency issues in Decentralized Exchanges by providing dynamic onchain orderbook management, real-time pricing metrics, and granular trade insights.

• Speed and Storage: Nuant solution is engineered for swift data delivery, processing and sharing blockchain data in under 100ms. It employs a dual storage system, ensuring quick access to both historical and real-time data.

• Dynamic Indexing Performance: Nuant's Dynamic Indexing, built for Arbitrum, boasts an impressive processing rate of up to 4000 blocks per second, epitomizing both speed and scalability.

In the ever-evolving landscape of blockchain and DeFi, technological progress is relentless. Recognizing the growing demands of the sector, especially for DeFi protocols that require real-time data at breakneck speeds, Nuant proudly introduces its state-of-the-art innovation – a cutting-edge infrastructure designed meticulously for Arbitrum and its affiliated protocols. This innovation isn't just about meeting standards; it's about setting them.

DeFi protocols, in their pursuit of providing decentralized financial solutions, are heavily reliant on instantaneous and accurate data. Recognizing this critical need, Nuant ensures that its infrastructure not only delivers data with ultra-low latency but does so reliably, regardless of the volume of requests.

Beyond just surface-level functionalities, Nuant is committed to providing robust back-end support. This includes high-performance indexing and analytic tools, paired with advanced storage solutions. Such a comprehensive suite ensures optimal performance and seamless data retrieval for all users and protocols, solidifying Nuant's position as a game-changer in the DeFi space.

Welcoming The Future of Blockchain Analytics

In the dynamic landscape of Ethereum scaling solutions, Arbitrum stands out, offering a unique blend of high-throughput, cost-efficient smart contracts, all firmly anchored in Ethereum's trusted security infrastructure. Recognizing the transformative potential of such a platform, Nuant has been deeply invested in developing infrastructure that is not only highly customizable but also optimized to extract its full potential.

Arbitrum's proposition of secure scaling for Ethereum reshapes the landscape of decentralized applications, setting new benchmarks for performance. However, it also introduces fresh challenges, especially in the realm of data acquisition and processing, where latency can be a bottleneck. The urgency of real-time data for DeFi protocols cannot be understated. It influences trading strategies, smart contract executions, and risk assessments.

Nuant's recent innovation is a response to this very challenge. Engineered with precision, our system ensures ultra-low latency, facilitating seamless interaction with platforms like Arbitrum. Our commitment is not just to match Arbitrum's pace but to augment its capabilities, ensuring that users can fully leverage its robustness.

DEX Monitor: Elevating Decentralized Exchange Monitoring

Decentralized Exchanges (DEXs) represent the very ethos of DeFi: permissionless, trustless, and open trading. However, they face a significant challenge when it comes to managing and updating order books on-chain in real-time. Traditional databases have the luxury of quick reads and writes, ensuring that order book updates, which are critical for accurate trade executions, happen near-instantaneously. In contrast, DEXs operating on public blockchains confront latency issues given the inherent nature of block confirmations and the decentralized consensus.

Enter Nuant's DEX Monitor—a breakthrough solution tailored to address these challenges.

Comprehensive Order Book Management: DEX Monitor introduces a dynamic order book management system, allowing DEXs to maintain an on-chain order book. This is pivotal for ensuring that trades are executed at intended prices, minimizing occurrences like front-running and ensuring that user orders are always up-to-date and accurate.

Real-time OHLC Price & Volume Metrics: The tool ensures that traders get real-time Open, High, Low, Close (OHLC) price points and volume data. In fast-paced crypto markets, the difference between real-time and a few seconds delay can mean substantial gains or losses for traders.

Crucial Liquidity Data Points: Liquidity is the lifeblood of any exchange. With the DEX Monitor, users get insights into available liquidity, enabling better trading decisions and ensuring smooth trade executions without significant price slippages.

In-depth Trades and Orders Analysis: Understanding trade patterns, big order placements, and potential whale activities are essential for DEXs and traders. Our tool dives deep, giving granular insights that can guide trading strategies and risk assessments.

The usability of DEX Monitor is further enhanced with user-friendly REST API endpoints and Server-Side Event subscriptions. Whether you're a developer building a DEX with an order book or a trader seeking insights or a market maker, the tool ensures data is accessible, accurate, and timely.

Diving Deep: A Look Inside DEX Monitor

Our infrastructure is underscored by its technologically advanced dual storage mechanism:

Persistent Storage: This meticulously designed repository houses refined, pre-aggregated historical data. By leveraging optimized database structures and indexing mechanisms, it ensures rapid retrieval of historical data points while minimizing query times.

In-memory Storage: Serving as the frontline for data needs, this storage system employs high-speed RAM-based solutions. It ensures the most rapid access to live, immediate data, making it indispensable for applications necessitating real-time analytics.

Thanks to our innovative storage approach, every transactional detail, regardless of its intricacy, is diligently recorded and accessible. Moreover, our Persistent Storage is fortified with a state-of-the-art integrity check system. By utilizing advanced algorithms, this system persistently scans for data anomalies, ensuring the utmost accuracy and reliability of stored information.

At the core of our system are the 'Calculators'. These sophisticated processing units are designed explicitly for decentralized exchanges. Their primary role is to interpret and process the intricate dynamics of DEX, continuously analyzing transactional patterns, liquidity shifts, and event-driven modifications in the blockchain ecosystem.

Speed Matters: The Nuant Commitment to Low Latency

In the fast-paced realm of DeFi, speed has evolved from a luxury to an absolute imperative. As financial tools and strategies become increasingly sophisticated, the margin for delays shrinks, underscoring the critical role of instantaneous data in strategic decisions. In such a volatile environment, even the briefest lapse in data delivery can pivot a situation from seizing an opportunity to watching it slip away.

The Necessity of Promptness in DeFi: DeFi's dynamic nature is marked by its swift shifts and intrinsic volatility. The rise of algorithmic trading and high-frequency strategies has amplified the urgency for exact, up-to-the-moment data. Every split-second is vital, especially when high frequency trading algorithms are in play, relying heavily on the immediacy and precision of incoming data.

Nuant's Commitment to Rapid Data Delivery: With a deep understanding of DeFi's rigorous demands, DEX Monitor stands out as a paragon of efficiency. Leveraging cutting-edge technology, avant-garde caching mechanisms, and optimal data workflows, we guarantee expeditious data delivery. As soon as a new block materializes on the blockchain, our infrastructure swiftly processes and shares the data, consistently achieving a sub-100ms latency. But our dedication isn't restricted to speed alone; we prioritize delivering data that is not only fast but also unerringly accurate, emphasizing our unwavering commitment to setting the gold standard in the DeFi arena.

Managing Blockchain Reorganizations: The Nuant Expertise

In the blockchain sphere, 'reorgs' or reorganizations, are inherent complexities that arise when two miners solve a block at nearly the same instance. This dual discovery creates two valid extensions to the chain. However, as the consensus protocol dictates, only one can prevail. Eventually, one chain gains prominence due to increased consensus support and extended length, relegating the other, shorter one to obsolescence.

The Technical Challenges of Reorgs: When a reorg occurs, the potential ramifications are multifaceted. Beyond the evident risk of double-spending, the integrity of transaction ordering is at stake. This can jeopardize smart contracts and DApps that rely on sequence-specific triggers or states. Additionally, DApps depending on a real-time feed might act on data from the shorter, soon-to-be-discarded chain, leading to inaccuracies or flawed executions.

DEX Monitor’s Advanced Solution to Reorgs: At the heart of DEX Monitor's design is an agile system that actively monitors for chain reorganizations. When a reorg is detected, our platform immediately commences an assessment phase, identifying discrepancies between the orphaned and prevailing chains. As part of this, transactional events in the discarded chain are flagged, and any dependent metrics are recalibrated based on the canonical chain. This rigorous process ensures that the data relayed is not only timely but also consistently accurate, no matter the blockchain's fluctuations.

Redefining Data Access: Dynamic Indexing

At its core, Dynamic Indexing represents Nuant's commitment to delivering precise historical data indexing for Arbitrum and the protocols that are deployed on top of it. 

How do we deliver this treasure trove of information? Whether you're a developer integrating into your application or a researcher diving into metrics, our provision via API or direct data lake access ensures a seamless experience.

Diving into the technical prowess of our system:

  1. Block Listener: The sentinel of our framework. It continuously scans the blockchain, alerting our infrastructure of new blocks and potential chain reorgs. Its robust design ensures a meticulous tracking of block sequences while simultaneously comparing data across multiple nodes.
  1. Node Proxy: Think of it as the versatile brain behind operations. A tri-functional application, it:

    a. 
    Directs requests to specific blockchain nodes based on various criteria such as method availability, rate limits, and data presence. Its resilience is highlighted by a fallback mechanism ensuring uninterrupted data flow even in the face of node unavailability.

    b. Harnesses a high-speed caching system. After the initial data fetch, any successive read request is near-instantaneous, clocking in at sub-10ms times.

    c. Tailors to custom needs. It’s sculpted to allow single requests from our indexer without the headaches of varied data formats or method availability across nodes.
  1. Dynamic Indexers: The crown jewel. These powerhouses make data access look effortless. Provide them with a protocol's ABI, and they spring into action. They pre-emptively perform necessary calculations, caching the results for instantaneous future access. Say goodbye to subscribing to block streams or filtering tasks. Instead, input your block number and protocol, execute an HTTP request, and voilà - your data is served. Their intrinsic design promotes fault tolerance, guarantees zero downtime, and paves the way for uninterrupted scalability.

In terms of sheer performance, our standard Dynamic Indexer deployment boasts a staggering rate of up to 4000 blocks/second. This isn't just about speed; it's about harnessing that speed at scale. As demand fluctuates, our infrastructure responds in real-time, scaling up or down the number of active instances.

About Nuant

Nuant is transforming the way professional investors and financial institutions navigate the dynamic world of digital asset investing. With a specialized approach that prioritizes the reliability of real-time data, advanced risk management, and tools for advanced decision-making, Nuant aspires to be the ultimate solution for institutions seeking exceptional digital asset portfolio management.

At the core of Nuant’s offerings is the Nuant Quantitative System (NQS), a state-of-the-art, all-in-one solution meticulously designed to meet the growing demands of the decentralized finance (DeFi) industry. NQS is built on top of a powerful blockchain data infrastructure that combines data fetching, aggregation, efficient storage, and reliable delivery. This robust infrastructure ensures ultra-low latency data retrieval for Blockchains, accommodating the real-time data requirements of DeFi protocols.

Committed to innovation and excellence, Nuant leverages its extensive expertise, experience, and cutting-edge technologies to deliver unparalleled value, helping clients reduce risk, maximize returns, and stay ahead in the rapidly evolving digital asset economy.

About Arbitrum One

Arbitrum One is a leading Ethereum Layer-2 scaling solution developed by Offchain Labs. An Optimistic Rollup, Arbitrum One provides ultra-fast, low-cost transactions with security derived from Ethereum. Launched in August 2021, the Arbitrum One mainnet beta is EVM-compatible to the bytecode level and has 60%+ TVL in the L2 segment. 400+ DeFi and NFT projects are live in the ecosystem to date. In August 2022, Arbitrum One upgraded to Nitro tech stack, enabling fraud proofs over the core engine of Geth compiled to WASM.

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