The Graph is a decentralized protocol designed to collect data directly from blockchain-based applications. Before the launch of Graph, the developers had to use multiple resources to collect the required data from NFTs, Smart Contracts, and Application Programming Interfaces.
Most of the time, they had to rely on third-party applications to gather information from blockchain applications. The Graph fixes this problem by indexing the blockchain data in one place.
What is Graph (GRT)?
The Graph is a decentralized query protocol that streamlines the communication between blockchain-based applications. The developers can easily generate APIs (aka Subgraphs) using this network. The subgraphs collect data from the Ethereum blockchain and store it in an organized manner.
The Graph is mainly built for Ethereum and InterPlanetary File System (IPFS). The developers can directly fetch data from these platforms rather than relying on a third party. Some popular Defi platforms like Aave, Balancer, Uniswap, Aragon, Synthetics, and DAOstack are currently using the Graph’s APIs.
Graph Brief History
Jannis Pohlmann, Yaniv Tal, and Brandon Ramirez founded the Graph project in 2018. Before the launch of the Graph project, these individuals launched several developer tools successfully.
The team raised around $19.5 million through token sales in 2019. The company organized another public sale in October 2020 and raised around $10 million. Many renowned investors like Coinbase Ventures, Multicoin Capital, and Digital Currency Group have invested in this project.
The company has sold around 21% of the total supply during public sales. The remaining tokens will be released to the network participants in the form of staking rewards.
How Does Graph Work?
The Graph network consists of a set of nodes (known as Graph Nodes) that continuously scan data from the smart contracts, NFTs, and decentralized applications. These nodes update data on the relevant subgraphs whenever new information is added to a smart contract or decentralized application.
Unlike first and second-generation blockchain networks, The Graph network uses the Proof-of-Stake consensus mechanism to run its operations smoothly. The users need to stake their GRT tokens to participate in the validation process.
The best part is that it provides everyone the opportunity to participate in the validation process through its delegation program where small quantity holders can trust existing node operators with their tokens. Thus, everyone gets a chance to earn passive income from the platform.
Subgraph – The Graph network enables developers to build Application Programming Interfaces (APIs) within the network. The network connects these APIs to the open-source APIs known as subgraphs. The users need to send a request to GraphQL if they need information from particular subgraphs.
According to recent stats, more than 2,500 subgraphs are currently available on the Graph network.
Subgraph Manifest – Subgraph Manifest describes several aspects of a subgraph such as blockchain events, smart contracts, and the procedure of collecting data.
Graph Nodes – The Graph nodes are connected to the subgraphs and they answer the requests that are sent through the subgraphs. The nodes collect data from the entire blockchain and update the answer accordingly.
How is the Graph Network Secured?
The Graph network is operated through several participants.
- Stakers – These node operators install a node on their computers to participate in the validation process. They are required to stake a specific amount of GRT tokens to become a validator.
- Delegators – The users, who don’t have the required amount of GRT or don’t want to install a node on their systems, can delegate their GRT tokens to someone who is already working as an indexer.
- Indexers – These node operators collect data from relevant subgraphs based on the request received. These users need to stake their GRT tokens to participate in this process.
- Curators – These node operators play a vital role in determining which nodes need to be indexed by the Graph. These users prioritize the subgraphs depending on their quality. They attach their GRT tokens to the subgraphs they trust in.
- Fishermen – The network verifies the accuracy of responses through another set of nodes known as fishermen.
- Arbitrator – Arbitrators are responsible for identifying the indexers involved in malicious activities. They have the authority to remove the indexer if found malicious.
What Makes the Graph Unique?
Gathering data is one of the major complications the developers have to face in the blockchain industry. It often takes plenty of time to collect the data and the accuracy of the data is still doubtful. In some cases, the developers need to rely on centralized solutions to collect their desired information.
The Graph provides a decentralized solution to the problem allowing everyone to access their desired information instantly. The users can rest assured about the data’s safety because the network is managed by multiple node operators.
GRT is the native token of the Graph network that can be used to request information from different subgraphs. With a circulating supply of 6.9 billion tokens, GRT has a market cap of $684 million. It has a total supply of 10 billion tokens. The remaining 3.1 billion tokens will be released through the rewarding process. GRT ranks among the 60 best cryptocurrencies in terms of market cap.
The Graph is a unique kind of blockchain project that provides a decentralized solution to collect data from different blockchain applications. It stores the information in the form of indexes that are easily accessible by the developers. The developers can create unique kinds of decentralized applications on the blockchain network with the help of real-time data.
If you need more information about how the Graph network works, feel free to get in touch with us.