April 18, 2024

Five Strategies for Crypto Data Governance and Management

Many financial institutions active in digital assets are utilizing vast amounts of data encompassing multi-exchange trading figures, liquidity provision analytics, and on-chain metrics, to name a few. Ensuring that this data is accurate, accessible, and organized is critical for making informed decision-making and efficient operations. This is where data governance and management come into play.

Data governance refers to the overall management of the availability, usability, integrity, and security of data in an organization. It involves establishing processes and policies for managing data assets throughout their lifecycle. These include how data is collected, stored, shared, used, and maintained. Data management is the implementation of these processes and policies to ensure data is properly utilized.

Effective data governance and management is essential for any organization looking to stay ahead in today's digital age. It allows for better decision-making, reduces the risk of errors or mishandling of sensitive information, and enables businesses to leverage their data for strategic growth. With the right systems and processes in place, organizations can ensure that their data is accurate, secure, and accessible for seamless operations.

Establish a Robust Data Governance Framework

Before data management practices can be utilized, the overarching data governance framework must be designed and implemented. Data governance needs will vary from one organization to another, but the core components of a crypto data governance strategy include:

Data stewardship - Appointing specific owners or stewards guarantees accountability and uniformity in data management and utilization. They play a crucial role in maintaining data integrity, safeguarding privacy, and adhering to regulatory standards.
Data Access Controls - Much like data stewardship, regulating access to data ensures clarity and organization across all departments. Establishing precise protocols regarding who can access specific data and the actions they are permitted to take with it is vital to data governance. This approach not only helps maintain the security and confidentiality of sensitive crypto data, but also ensures that employees are using data appropriately and ethically.
Data quality standards - Ensuring data quality requires verification that the collected data is accurate, comprehensive, consistent, and dependable. Without appropriate quality control protocols, flawed or incomplete data can result in erroneous analyses and poorly informed decision-making. Partnering with a comprehensive data provider such as Amberdata simplifies your processes. We ensure all datasets are time-series normalized, guaranteeing that your teams have access to the most accurate and dependable cryptocurrency data available.
Data security protocols - Crypto data often contains highly sensitive information, such as transaction details, which must be protected from unauthorized access or malicious attacks. Firms must implement comprehensive protocols in place to prevent unauthorized access, breaches, and cyber-attacks. This can entail using encryption methods to secure the data at rest and in transit, regular data backups, and limiting access to certain datasets to essential personnel only.
Ensuring regulatory compliance - Along with security, protecting the privacy of your customers' data is crucial for maintaining trust and adhering to regulatory and compliance laws. This involves creating clear policies on how customer data will be collected, used, and shared. It's important to regularly review these policies and update them as needed to stay compliant with changing laws.

Implementing Data Management Practices

Data management is the day-to-day implementation of the data governance frameworks you’ve already established. It includes tactics like data pipelines, ETL (extract, transform, load), centralized data storage, and following protocols for security, privacy, and access.

Streamline Crypto Data Management with Snowflake and Google Cloud’s Analytics Hub

The crypto economy moves at a rapid pace, which means that your data management practices need to be able to keep up. That’s why Amberdata has data delivery partnerships with Snowflake and Google Cloud’s Analytics Hub. These platforms allow you to access Amberdata’s industry-leading datasets in environments with built-in data governance and management. With governance and management covered, your team can enjoy benefits like :

Simplified data pipelines - Amberdata datasets are available as part of the Snowflake marketplace and easily accessible within Google Cloud’s Analytics Hub. These cloud-based platforms manage data extraction, and pipelines, and act as a centralized warehouse so that your data is always ready when you need it.
Quick visualization - With Snowflake and Google Analytics hub, building the visualizations that bring Amberdata’s datasets to life is simplified with the platforms’ native dashboard tools.
Control access and collaboration - Set granular permissions, share data across multiple departments and stakeholders without creating data silos or compromising security.
Seamless external data integrations - With Google Cloud’s Analytics Hub or Snowflake, you can bring in all of the data sources that matter to your organization. From TradFi data to Google Trends, these platforms give you a holistic view of the global economy in one place.
Leverage AI for Data Insights - Snowflake and Google Analytics also offer built-in machine learning that enables your team to process vast amounts of crypto data and extract insights for predictive analysis, trend forecasting, sentiment analysis, and anomaly detection faster than ever.

Available Datasets

With BigQuery, you can access all of your Amberdata datasets in Google Cloud’s Analytics Hub.

Amberdata offers four crypto datasets in the Snowflake marketplace:

Auditing Data Management Processes

Regularly monitoring and auditing your data management processes is the key to the long-term success of data governance and management efforts. These audits can help proactively detect potential data breaches or irregularities, process inefficiencies, or breakdowns in data management implementation practices.

Final Thoughts

With the growing complexity and volume of data being collected, organizations need effective data governance and management strategies to stay competitive. Not only does proper data governance and management improve decision-making, but it also simplifies compliance efforts, risk management, and cross-department collaboration, leading to increased efficiency and productivity throughout the organization.

For more insights on the infrastructure and management of crypto data, download our Digital Assets: Managers Fuel Data Infrastructure Needs [Coalition Greenwich Report].