What Is The Graph (GRT)?

The Graph is an open-source protocol built on Distributed Ledger Technology (DLT) that facilitates the collection and processing of blockchain data without relying on intermediaries. Serving as a global API, The Graph enables the indexing, organisation, and querying of data through the GraphQL programming language, promoting decentralisation and easy access to information.

Designed to facilitate data querying for networks such as Ethereum, Filecoin and IPFS, The Graph powers numerous applications in the DeFi and broader Web3 ecosystem. It allows developers to build and publish open APIs, known as subgraphs, which applications can query using GraphQL to retrieve blockchain data.

The Graph aims to bring reliable decentralised public infrastructure to the mainstream market, ensuring the economic security of The Graph Network and the integrity of the data being queried. It has been utilised by thousands of developers for DApps like Uniswap, Synthetix, Aragon, AAVE, Gnosis, Balancer, Livepeer, DAOstack, Decentraland, and many others.

The Graph’s native token, GRT, facilitates the entire network. Users who wish to submit queries for blockchain data pay a query fee in GRT, while node operators and subgraph developers earn the query fees. GRT is also utilised for network governance.

How Does The Graph (GRT) Work?

With the increasing prominence of decentralised finance (DeFi), The Graph protocol plays a crucial role in the broader crypto ecosystem. It allows developers and participants to utilise public and open APIs, known as subgraphs, to build decentralised applications (dApps) and efficiently query and index data. In April 2021 alone, The Graph's hosted service handled over 20 billion queries.

The system operates using Graph Nodes that scan blockchain databases utilised by network participants to organise data effectively. Developers and users can pay with GRT tokens to create and access subgraphs. By indexing data, developers define its structure and how it should be utilised by dApps. Indexers then establish a decentralised marketplace for queries, where consumers use GRT tokens to access various services on the network.

The network's ecosystem comprises Indexers, Curators, and Delegators, all collaborating to provide accurate and efficient data services in exchange for GRT tokens. Consumers querying subgraphs compensate these participants with GRT through a gateway system. Indexers act as node operators by staking GRT tokens to enable indexing and querying, while users can build and interact with apps on networks like Ethereum, IPFS, and PoA via GraphQL. The Graph plans to support additional networks in the future.

The History of The Graph (GRT)?

Founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann, The Graph emerged from the need to simplify the development of dApps on Ethereum. Yaniv Tal, inspired by his own challenges in creating new dApps, collaborated with his team to develop the first decentralised indexing and querying application of its kind.

The Graph's mainnet launched in 2020, marking a significant step towards fully decentralising dApp usage and increasing the creation of subgraphs on the network. The project's ultimate mission is to make Web3 accessible to everyone, enabling the development of dApps without the need for centralised servers or authorities.

To fund its development, The Graph conducted both public and private token sales, raising $12 million from the public sale and additional funds from private investors, including Coinbase Ventures, Digital Currency Group, Framework Ventures, and Multicoin Capital.

What Makes The Graph (GRT) Unique?

The Graph stands out as the pioneering decentralised marketplace for querying and indexing blockchain data for dApps. Its innovative approach addresses common challenges in dApp development by resolving indexing issues and eliminating proprietary concerns, thereby offering seamless access to organised blockchain data.

The protocol's uniqueness lies in its decentralised governance model, where Indexers, Curators, and Delegators collaboratively maintain and enhance the network's services. This community-driven structure ensures data accuracy and reliability while fostering continuous improvement of open APIs and subgraphs.

What Gives The Graph (GRT) Value?

The value of The Graph is derived from both its technical capabilities and its market performance. Key factors contributing to its worth include its robust blockchain architecture, utility in simplifying dApp development, and its role in advancing the decentralisation of Web3.

Market-related elements such as total and circulating supply, adoption rates, project developments, regulatory landscape, and overall demand also influence GRT's value. The successful launch of its mainnet and ongoing efforts toward full decentralisation have further solidified The Graph's position and utility within the crypto space.

Technical Architecture

The Graph utilises a component called the Subgraph Manifest to index data collected from supported networks like Ethereum. Each subgraph adheres to predefined rules that dictate how data related to blockchain events and smart contracts should be processed and stored.The process begins with dApps adding information to the network via smart contracts, culminating in finalised data records. The Graph Node filters and stores this data, making it accessible based on consumer queries through subgraphs. The ecosystem incentivises participants—Indexers, Curators, and Delegators—by rewarding them with GRT tokens for their contributions to maintaining and improving the network's data services.

Network Security

Security within The Graph network is maintained through the collaborative efforts of Indexers, Curators, and Delegators. Indexers, operating nodes within a decentralised governance framework, strive to provide high-quality services at competitive prices. Curators ensure data is accurately organised and classified, while Delegators support network security indirectly by delegating their GRT holdings to trusted Indexers.

Use Cases for The Graph

The Graph serves as a critical infrastructure for enabling smooth operation and development of dApps by providing an efficient system for sourcing and utilising blockchain data. The native GRT token is central to the network's economy, facilitating payments for services, incentivising participant contributions, and enabling access to various applications across interoperable networks.Developers and consumers leverage GRT tokens to pay for creating and accessing subgraphs, while participants earn rewards for maintaining and enhancing the network's functionalities. Additionally, GRT tokens are actively traded on the cryptocurrency market, providing opportunities for investment and liquidity within the crypto economy.