The Graph Is An Unusual Crypto Project – Here’s All You Need To Know

However, the industry could only begin with some centralized entities, who are gradually being replaced with decentralized alternatives.

This is what The Graph protocol aims to do, substituting data ingestion services like Etherscan, which is a centrally-governed platform for sourcing historical transactions on the Ethereum blockchain.

About The Graph

The Graph is a decentralized indexing protocol built for the purpose of enhancing data flow effortlessly from the blockchain. It achieves this by querying networks like Ethereum or InterPlanetary File System (IPFS), retrieving, sorting, and indexing the data into SubGraphs, which can then be easily accessed and used by developers for analysis or developing fully decentralized applications.

“The Graph Network is a decentralized indexing protocol for organizing blockchain data. Applications use GraphQL to query open APIs, called subgraphs, and retrieve data that is indexed on the network. With The Graph, developers can create serverless applications that run entirely on public infrastructure,”

the website reads.

The risk with using third parties resources is that they can be easily manipulated or publish erroneous results which can have a bad ripple effect on the smart contracts running on that particular. It will be a difficult task for the developers to develop tools from the crash for querying blockchain, which is why The Graph comes in handy and gained massive adoption when it launched.

How The Graph Simplifies Data Sourcing

The use of “SubGraph” enhances the whole process of querying blockchain and data flow. A subgraph defines what data will index from Ethereum to The Graph, and how it will store it. When data is being searched for, The Graph nodes are able to surf the entire SubGraph on the network to identify which indexed data best suits the query.

There are four groups of entities that play a significant role in the successful operations of The Graph protocol. They include Indexers, Curators, Delegators. and Consumers.

Indexers are node operators who are responsible for providing data indexing and query processing services in The Graph Network. In order to do this, they are required to stake a certain amount of Graph Tokens (GRT). The Curators are the ones responsible for signalling what SubGraph should be indexed.

Delegators help to secure the network. They deposit their shares or GRT holdings to Indexers, who in turn stake the tokens in order to index data on The Graph network. Delegators are not required to operate their own nodes because they are only allowed to use already existing ones operated by Indexers.

Consumers are the ones that require or use these data indexed on the network. They can be in the form of trading platforms or decentralized applications. Consumers incorporate the data into their applications via an application programming interface (API).

The GRT Token

GRT is the native cryptocurrency and governance token of The Graph. It is based on the Ethereum blockchain but runs on a proof-of-stake consensus mechanism, which explains why the whole activities on the network are supported through token staking. GRT was distributed to the market through ICO or Initial Coin Offering.

Big-name crypto companies like Coinbase and Multicoin Capital participated in the private round, while 4,500 investors took part in the public ICO, where a total of 400 million GRT was distributed, netting The Graph about $12 million in October last year.

At the time of publication, there were 4.72 billion GRT in circulation, which summed to a market capitalization of over $3 billion at $0.7786 per coin. The current price is down over 70% from the all-time high of $2.88 in February 2021. Since GRT was listed on CoinMarketCap on December 17, 2020, the price has risen by 456%.

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