What is Etherscan? How Does It Work?

What Makes Etherscan Important?

Etherscan is a public and free tool that contextualizes the Ethereum blockchain. Unlike crypto wallets that hold funds, Etherscan focuses solely on information. It allows users to track transactions, view wallet balances, check token activity, monitor gas fees, and inspect smart contracts.

Blockchains are publicly distributed ledgers allowing anyone to view the activity taking place on any blockchain network. However, this data can be difficult to read and understand. Etherscan organizes this information into an easy-to-use interface.

No sign-up is required, though creating an account allows users to add features like alerts and watchlists. While other networks like Solana, Cosmos, Cardano, Binance, and Cronos have their explorers, Etherscan is the most widely used tool for Ethereum.

How Etherscan Works

Etherscan functions like a search engine for Ethereum. You can enter wallet addresses, smart contract addresses, transaction hashes, block numbers, or token symbols and instantly access detailed information.

Each transaction shows the sender and receiver addresses, the amount transferred, gas fees, and the transaction hash. You can also explore token transfers and interactions with smart contracts, all in a readable format that doesn’t require technical knowledge.

Key Features of Etherscan

There are several features users who sign up benefit from.

Transaction and wallet tracking

With Etherscan, you can monitor any Ethereum wallet or transaction. Even without creating an account, you can see the full history of a wallet, including incoming and outgoing transactions, gas fees, and timestamps.

Registered accounts can set up notifications for when transactions occur for a specific address (such as their own) or a specific asset and can add addresses to a watchlist to monitor their own or another person’s investments.

Ethereum gas tracker

Etherscan provides a convenient way to check current gas prices on the Ethereum network. You can see the amount of gas you’d need to pay for low-, medium-, and high-priority transaction processing.

You can also see the estimated costs of certain transactions, such as a swap on Uniswap or selling an NFT on OpenSea. There is also a chart showing the confirmation time versus gas price. Below this information, you can see the top 50 gas guzzlers and spenders.

An example of gas fees from 2022. Source: Etherscan.io

Smart contract verification

Etherscan allows you to verify its source code when you interact with a smart contract. This allows you to confirm that it performs the intended function and isn’t malicious. Users can also view all contract approvals linked to their wallet and revoke permissions if needed. This adds a layer of security and ensures safer interactions with decentralized applications, NFT platforms, and DeFi protocols.

To do this, you can simply copy and paste the smart contract address from a transaction you are about to make into Etherscan to quickly verify that it is in fact selling an asset on OpenSea. It is not doing something else. This can help avoid situations where a decentralized application has been compromised.

ERC-20 token analytics

Etherscan offers in-depth analytics for all Ethereum tokens. Searching for a token such as SHIB, ENS, or UNI provides information on circulating supply, market capitalization, and the number of holders.

You can also analyze token transfers and see the distribution among wallets, which helps identify whales or uneven holdings. For anyone researching or investing in Ethereum tokens, these insights are critical for making informed decisions.

The ENS token on the platform.

This is a form of analytics that is difficult to do without a block explorer. Sites can show you the market cap and price of a token, but you can’t analyze the token without Etherscan.

You can determine token distribution, see which wallets are buying or selling the most, how much each wallet holds, and in some cases the general identity of the holder, such as an exchange.

Why Etherscan and Block Explorers Are Powerful Tools

As we’ve seen in this guide, there are several useful ways in which you can use a block explorer such as Etherscan to aid in your crypto research and monitoring.

The best part is that it is a free-to use service that you can access at any time without restrictions as an anonymous viewer. If you register, you can get access to more personalized information, but it’s your choice. Furthermore, as mentioned earlier, Etherscan is not the only block explorer out there.

If you use Cardano, Solana, Binance, or any number of other blockchain networks, there are explorers for them, and you should consider using them.