The Graph
The Graph is a decentralized query protocol for indexing and caching data from blockchains and storage networks. The Graph is an indexing protocol for categorization and querying data from blockchains, starting with Ethereum. It makes it possible to query information that is difficult to query directly.
The Graph was co-founded by Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez in 2017. The three had a mutual want to create software faster. On June 5, 2018, the founding team launched their decentralized query protocol for blockchains. Developers of decentralized finance (DeFi) projects quickly took to The Graph, and also the project reached a billion monthly queries by June 2020.
The Graph raised $5 million in an exceedingly token sale later that month, with Coinbase Ventures, Framework Ventures and CoinDesk parent company Digital Currency group among its investors. Following the official launch of its main net in December 2020, The Graph has continued to create tools for developing decentralized applications for both layer 1 and layer 2 blockchain protocols.
Cryptocurrencies are gradually finding additional use in several areas. These embody, for example, digitization and web 3.0, with the blockchain also playing a very important role. Many applications trust external information sources, that a skilled worker provides. The Graph is one of the leading providers, getting ready the data for users and creating it making.
The Graph aims to retrieve and prepare information from different protocols (e.g., Ethereum or Filecoin). This gives users quick access to information sources and permits them to use the information directly. Developers can retrieve this information (e.g., token prices) and use it for their application.
The project is a decentralized Oracle solution that processes information from blockchains for further use. So-called subgraphs are used, which may be compared with an application programming interface (API). These are integrated into various programs to retrieve the data.
The Graph’s first step for aggregating information happens through the Graph Nodes, who continuously scan network blocks and smart contracts for info. When an application adds information to the blockchain through sensible contracts, the Graph Node adds the data from these new blocks to its appropriate Subgraphs.
A subgraph is defined by a subgraph manifest, which is immutable and stored on IPFS. The immutability is important for having deterministic and reproducible queries for verification and dispute resolution. The GNS performs a much-needed role by allowing teams to attach a name to a subgraph, which can then be used to point to consecutive immutable subgraph “version”.
Once the Graph Node extracts information, there are three types of users who contribute to organizing data in its protocol. These include:
Curators – Subgraph developers who assess which subgraphs are of high quality and need to be indexed by The Graph. Of note, Curators attach GRT to the subgraphs.
Indexers – Node operators tasked with providing indexing and querying services for the signaled subgraphs, and must stake GRT in order to provide these services.
Delegators –Delegate GRT to indexers in order to contribute to running the network without installing a node.
The Graph has the following use cases:
· Staking: Indexers stake GRT to provide indexing and querying services.
· Deposit: Curators deposit GRT into a bonding curve to signal on a specific subgraph and earn a portion of query fees.
· Delegation: Delegators contribute by delegating GRT to existing Indexers and earn a portion of query fees and indexing rewards in return.
· Payment: Consumers pay GRT for subgraph queries to the Indexers, Curators and Delegators.
· Reward: Indexers and Delegators will earn indexing rewards in the form of GRT.
| DATE | NEWS/EVENTS | IMPACT |
| 07/05/2022 | TerraUSD and LUNA both collapsed and as a result, a number of crypto platforms folded in the aftermath | -54% Decrease |
| 10/03/2022 | GRT rises as subgraphs move to The Graph's decentralized main net | +23% Increase
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| 18/05/2021 | China closes financial, payment, and cryptocurrency trading institutions | -47% Decrease
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| 18/12/2020 | Blockchain data gets simpler as The Graph main net is launched | +600% Increase
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GRT is a work token that is locked up by protocol participants (Indexers, Curators, and Delegators) to provide indexing and curating services to the network. Active Indexers, Curators, and Delegators can earn income from the network proportional to the amount of work they perform and their GRT stake.
Total Initial Token Supply: 10 billion
New Issuance Schedule: Starting at ~3% annually, up to technical governance
Token Burning: Expected to be~1% of query fees and all deposit taxes are burnt, up to technical governance
Maximum Token supply: 10 billion minted + new issuance – burning.
So far, GRT has been able to attract attention, particularly strong robust share price gains. But the fundamentals behind the project also justify its rapid growth. A number of its known customers include CoinGecko, Aave, Decentraland, Synthetix, and many others. The Graph has been online since December 2020 and may already boast a high level of awareness. In contrast, to varied alternative cryptocurrencies, a number of that are valued considerably higher, GRT can already strengthen the crypto ecosystem. Even though it's still a very young project, varied platforms have already acquired data through Subgraphs. If this growth is sustained, The Graph might grow into one of the mainstays of the blockchain economy in the coming years.
