What is Data Standardization?

Data standardization is the process of transforming data into a consistent and uniform format. This makes it easily accessible and analyzable across different systems and platforms. In the context of digital assets and cryptocurrency markets, data standardization ensures that information such as asset names, ticker symbols, and transaction details remain consistent across all CEX platforms.

For example, standardizing Bitcoin to a single ticker symbol like "BTC" across all centralized exchanges eliminates confusion. This streamlines data management for fund managers handling large volumes of trades.

Why is Data Standardization Important?

Data standardization is important because data from different sources (e.g., different cryptocurrency exchanges) can be represented and labeled in many ways. This means that without standardization, data from these sources cannot be compared. Therefore, when choosing a data provider from multiple cryptocurrency exchanges, make sure it provides automatic data standardization.

Things to Remember

• Consistency is Fundamental: Standardizing data ensures uniform asset names, ticker symbols, and transaction details across all platforms. This eliminates confusion and facilitates seamless data management for fund managers.
• Enhances Data Quality and Accuracy: Implementing data standardization improves the reliability of reports, reduces errors, and enables precise tracking of transactions.