Coinalytics is developing a data science layer for the blockchain that lets participants in markets like Bitcoin analyze data and uncover hidden relationships.

The new intelligence layer applies advanced machine learning and distributed systems to cryptographic platforms, enabling enterprises in a variety of industries like online payments, financial services and decentralized applications to make decisions in real-time, according to the Palo Alto-based startup.

The company also revealed that it has received initial seed funding from The Hive, an incubator for big data startups.

Fabio Federici, CEO of Coinalytics, stated:

The maturation of a market is often defined by its ability to provide analysis and insight on transactions and developments. Our platform offers enterprises a real-time ability to convert information into action that will break down a significant barrier for mainstream adoption of the blockchain.

Traditional data analytics approaches are incompatible with the blockchain due to the blockchain’s lack of a central data source, its pseudonymous data model and the way the network reaches consensus.

Coinalytics explains that its platform uses advanced pattern recognition and real-time online learning to mine data and provide business and risk intelligence on transactions in real-time, even before a transaction is confirmed by the network. The platform’s data infrastructure is architected to scale to the scope of any decentralized network, while also augmenting the blockchain’s privacy and trust.

Federici added:

The concept of a blockchain is expanding rapidly into classic early technology adoption industries like financial services, supply chain management and the Internet of Things. We believe that growth will be fueled by an ability to assess risk and make better business decisions, and we anticipate Coinalytics will be an instigator of that ability.

Founded by a team of entrepreneurs with security and data infrastructure backgrounds at Google and Amazon Web Services, Coinalytics was accelerated by 500 Startups before raising a seed round led by The Hive. The seed funding from The Hive will be used to expand the company’s technology and sales teams and fuel general company growth.