Identifying Reliable Sources for Web3 Information

Blockchain Tech and the Information Landscape

In our digital world, you can access a range of platforms where you can gather information, including social platforms like X, Instagram, or TikTok, and media platforms varying from traditional journalism to podcasts and blogs. This abundance of information is excellent! You can always find up-to-date information on a new crypto project or various opinions about an issue; the best part is that it is easy to access. Still, this onslaught of content can be overwhelming. 

Those looking for reliable sources must sort through a lot of noise, including low-quality engagement farming, announcement teasing, and scams. The greatest challenge in finding reliable sources is its most significant advantage: anyone can say anything about any on-chain initiative. This leveled the playing field and allowed researchers to publish their findings and educate their audience, but it also allowed low-quality information to spread quickly and misinform. 

We often see fake screenshots of group messages and DMs from prominent crypto personalities and influencers to sway public opinions or even prank readers. Other unreliable sources include unverified social media accounts, anonymous blog posts, and pump-and-dump schemes. 

Surfacing the truth takes a little work but can be simple. In this article, we’ll discuss different types of sources, how to assess their credibility, and tools you can use to find high-quality information. 

Types of Sources 

Most high school history programs teach about “primary” and “secondary” sources. Let’s recap this concept quickly and discuss what primary and secondary sources look like in the blockchain space.

Primary sources are the most credible sources of information. They are the people or organizations that can provide raw data on a subject. A primary source could be a firsthand account of something a person witnessed or a company’s publications about its work. 

Secondary sources are from a third party who is not directly involved. They seek to analyze, commentate on, or often, in Web3’s case, promote the information from primary sources. 

Secondary source information is most of what we see today. Social media makes primary source information more accessible than before. Here’s what both of these look like in crypto using the examples of an investigation into scam activity:
In this investigation posted to X, ZachXBT, a well-known scam researcher, is a secondary source. His thread and research into scam activity provide his analysis of the situation.

This thread also provides excellent examples of primary sources. For example, the screenshot of an Etherscan transaction log shows that ZachXBT researched primary sources for raw information. 

Etherscan is a real-time blockchain explorer that provides raw details on blockchain activity. The screenshot itself isn’t a primary source. Someone could edit it. However, anyone can go to Etherscan to verify the information.

Evaluating Source Credibility

Regardless of whether something is a primary or secondary source, it is crucial to assess whether it is credible. Here are some criteria to check if a source is credible:

Authority

Check the source’s credentials by verifying who or what they are and what information they might have quality knowledge of. Reliable sources with authority should have unique expertise or access to provide insights into a project. Strong credentials might mean they are a long-time community member or an employee of a blockchain protocol. Websites or official publications from companies or projects are typically authoritative because they come directly from the target project.

Let’s talk through a quick example. You’re looking at an X account for the CEO of a Blockchain protocol talking about the company’s latest product launch. You’ve heard about how prominent blockchain personalities are being impersonated and you want to know whether or not it’s the real account.

First, you look at the account. It has many followers and a gold-verified checkmark that returns to the company’s X account. From the company’s X account, you find their company website and see that the CEO’s X account is listed in his bio. You confirm it’s the same account handle. Finally, from the company website, you find a link to the Discord server with an active community discussion. You verify with the server moderators that the X account is legitimate. While all of these steps might not be necessary each time, it shows there are several ways to verify if social accounts are legitimate.

Accuracy

Evaluate whether the information you see is accurate by comparing it against other sources, particularly primary sources or official communications. Reliable secondary sources usually cite where they found information and only make claims with evidence to back them up.

One example of checking accuracy has to do with website links. Bad actors often impersonate legitimate websites or even hack into social media accounts to post malicious links. You should verify that links posted in one location are listed in other spots, like a Discord channel or official Blog. This will help ensure you only interact with the blockchain on legitimate sites.

Objectivity

Identify if the source of information is neutral. Reliable sources present information without bias, and it should be a red flag when information is overly promotional or negative. Sources might add some speculation, which can be okay, but it’s important when researching to distinguish between facts, analysis, and a source’s speculation of what may happen in the future.

One way to consider neutrality is to ask what is in the source’s interest. If someone is an investor in a crypto protocol, it is in their interest to put information about that protocol in the best possible light and ignore criticism. Similarly, competing businesses also have an interest in calling out the flaws of their competition. When you see particularly positive or negative information about something in crypto, it is worth taking the time to understand if the source has any ulterior motive. For example, sources that promise unrealistic returns or use sensationalist language should be approached with caution.

Recency

Is this information recent? Does the source have current access? For example, an employee at a blockchain company is more likely to be reliable for their current access to company information than a former employee at the same company who left six months ago. Both sources would be more reliable than someone who has yet to work at the company! Plans change in crypto regularly, so it’s essential to identify how recent the information you’re researching is. 

Sources of Information to Research

Blockchain companies and official Project Documents 

Blockchain companies are credible sources when discussing their protocols and products. They have the authority to speak about products they are developing. However, since they’re talking about the projects they have a financial interest in, they have a distinct bias to promote their company in a positive light.

It’s also worth noting that some crypto companies have been proven to be bad actors, so it’s critical to validate claims made by companies through your own research. High-quality crypto projects often produce documents outlining their goals and the value their company will bring. These usually include a “whitepaper,” an in-depth document highlighting a potential problem and how the company will solve it. Starting with the whitepaper will give you essential knowledge and help you evaluate other sources of information as you do your own research.

News Outlets and Independent Researchers 

Many News Outlets can be hit or miss for crypto information. Some crypto news sites have published articles on crypto projects sponsored by the projects themselves, incentivizing the outlet to speak positively about them. Traditional media outlets can sometimes be reliable sources, but it’s essential to understand who wrote the article and their crypto expertise. Not everyone understands cryptocurrency’s ins and outs, and this knowledge can take years to acquire. As crypto markets ebb and flow, traditional media coverage also varies, which can lead to journalists without much blockchain experience writing about complex issues. 

Independent researchers like ZachXBT are reliable sources who have built their expertise on a subject over time. They are authoritative because of their long track record of objective and accurate investigations. These researchers often grow large followings on social media and are followed by other credible individuals in crypto, which can help you identify them. It’s important to remember that as accounts grow in influence, sometimes their motivations change. Be cautious about making decisions only because a large account mentions a crypto project. 

On-chain Data

One of the best things about crypto is the public ledger available to anyone! On-chain data tells the real story of what happens in crypto; anyone can verify the facts. You can use on-chain tools called blockchain explorers to read on-chain information and track funds, but there are also tools designed around analyzing on-chain data and tokens. Here are a few tools worth leveraging when you do your own research:

Etherscan

Etherscan is a famous blockchain explorer for the Ethereum network. It allows users to track transactions, view smart contract details, and analyze token data. It even offers a set of labels to help assess a token’s reputation, and it is helpful to know how those are sourced and surfaced!

Dune Analytics

Dune Analytics is a powerful platform for querying and visualizing blockchain data. It enables users to create custom dashboards and analyze on-chain activity, making it easier to interpret complex data and verify information.

CoinGecko

CoinGecko is a comprehensive cryptocurrency data aggregator that provides real-time information on prices, market capitalization, trading volume, and more.

Community Sentiment

Leveraging community-focused sources of information can be valuable when doing your own research. Community members can be reliable sources of information but also have strong biases and opinions. When conducting your research, it’s important to identify community members and learn their perspectives on the issue while understanding their biases and incentives. 

At the same time, this is where you are most likely to encounter scams or misleading actors, so staying on your toes and verifying what you are looking at and who you are talking to is vital. Be vigilant of “community members” or staff who might be scammers in disguise. You can use tools like X, Discord, and Telegram to connect with communities and check multiple sources to verify project announcements and initiatives.

Conclusion

An enormous wealth of knowledge is available for folks researching crypto topics, but it also takes work to sort through the noise. Take the time to assess each source’s credibility and evaluate whether you are getting the best information possible. 

Once you’ve analyzed a project’s credibility, the next step is to investigate its team and founders. Our next article will cover identifying red flags in teams and the best ways to assess their credibility. 

This article was written by Beau from Boring Security. Follow him on X here, and check out Boring Security’s X account, Discord server, and official website for more information.

Stay tuned for the next article in this series where Jaime dives into how to research project teams and founders.