The Graph – GRT

The Graph is a decentralized indexing protocol that allows “decentralized applications -” dApps to query data from networks like Ethereum, IPFS, Polkadot, Near, Solana, and Celo. It helps developers create and publish different APIs and make queries via GraphQL.

What is The Graph – GRT?

The Graph is a decentralized protocol that guides developers to acquire data from various blockchain networks. Since blockchains are a history of transactions, they cannot sort the data on their “own” networks. Therefore, finding transaction data can be highly time-consuming and energy-intensive. 

When a project uses The Graph, it establishes its own API. These are known as “Subgraphs”. Other projects can then query data from these subgraphs to execute their applications. The Graph has designed an explorer called Graph Explorer that you may use to find data from these subgraphs. You can use this to query data using The Graph’s own programming language, GraphQL.

For example, Developers and projects building on Moonbeam can now use subgraphs for indexing and querying data from the blockchain. The Graph also allows them to present data in their front-end applications, a critical factor in providing a good user experience.

A subgraph is a structured, open-access collection of blockchain or IPFS data on a specific topic that is regularly updated by the Graph Network’s Indexer nodes and accessible via a standard GraphQL API.

Multiple subgraphs can be used in a project, and each subgraph can contain smaller subgraphs inside it.  

This review of The Graph – GRT was created for informational purposes. This article is not intended for promotion.

General info about The Graph – GRT

There are four pillars that complete the Graph ecosystem. Let us try to understand how each of them contributes to the functioning of the protocol.  

Indexers 

Indexers are responsible for providing indexing and querying services. Node operators in the network who stake GRT tokens are known as indexers. The staked “Graph – GRT” is exposed to a thawing time, and slashing is also conceivable to ensure that an indexer accomplishes the job correctly. 

A portion of the staked GRT is slashed if an Indexer behaves maliciously, supplying false information, or if the indexing is done incorrectly.  

Indexers are paid query and indexing fees, as well as rebates from a rebate pool, which is distributed proportionally to the amount of work completed.

Indexers “can” set their own fees, resulting in a marketplace of indexers offering their services. The fee rates are being kept in control by the marketplace to ensure users won’t be overcharged.

Consumers  

Consumers are the ones who pay indexers for their services. End users, such as developers or web services are frequent consumers. They play a crucial role because they oversee the demand side of the supply/demand equation.  

Delegators  

GRT holders who wish to stake their tokens can do so by delegating them to one or more indexers. Stakers will receive a part of both the indexing and query fees. However, the indexers determine the amount you earn, so stakers must investigate where they may make a reasonable proportion as a delegator.

Another consideration is that if you choose an untrustworthy indexer and need to retract your tokens, you will be subjected to a 28-day lock-up period during which you will be unable to withdraw/transact your tokens.  

Curators  

Curators alert indexers as to which subgraphs are worth indexing. By depositing GRT into a bonding curve, curators alert indexers to specific subgraphs. 

A bonding curve is a mathematical curve that defines a relationship between price and token supply.

They must pay a tax identical to that paid by delegators if they want to withdraw those tokens. They are compensated for contribution by a percentage of the query fees earned by that subgraph—this aids in expanding the ecosystem and incentivizing them simultaneously.  

Curators are also encouraged to locate relevant subgraphs if possible  to maximize revenue. As a result, curators are frequently developers who signal their own subgraph to be included in the ecosystem.

Curators can also be other people who are extremely informed about the ecosystem. They can utilize the explorer to gather information about subgraphs before deciding whether to index them or not.  

Fishermen and Arbitrators  

Fishermen check that the indexers’ responses to queries are valid, and if they aren’t, they report it to the Arbitrators, who decide whether the indexers’ staked GRT should be slashed.  

Projects on the Graph – GRT  

Many projects are being built on The Graph’s ecosystem. Let’s understand some of the projects that are exploring the platform.

Fuse  

Fuse Network is a scalable platform for token-based applications that is built on an Ethereum-compatible proof-of-stake blockchain. Fuse Studio and the upcoming Fuse Cash consumer-facing payment wallet are two of its standout features.

The Fuse team creates subgraphs for its core products, including Fuse Studio, FuseSwap, and the Fuse network consensus. dApps building on Fuse will also be able to launch their subgraphs, as well as anyone else in the ecosystem.

Since the Graph Network fully supports Fuse, any subgraphs that rely on data from the Fuse blockchain can be launched on the Graph.

Everest  

Everest is a cryptocurrency project registry launched in May 2020 and is the first decentralized application built on The Graph. MetaCartel members intercepted it to better track, support, and fund projects in the cryptocurrency ecosystem.

Everest’s vision is to demonstrate the power of subgraphs as open APIs and demonstrate that competitive applications can be decentralized.

The Team

The Graph was founded by Yaniv Tal, Jannis Pohlmann and Brandon Ramirez in 2018. Previously they have worked together on startups focused on software development. The Graph project is a vibrant team consisting of developers around the globe.

The Graph team is currently working on transitioning from passing off governance to an on-chain decentralized governance protocol.

Use case of The Graph – GRT

The rewards for indexers, delegators, and curators are paid out in GRT tokens. The indexers are required to deposit and use them as collateral for the data they provide. They may lose a portion of their deposit if they provide erroneous data.

It is a utility token that allows users to participate in the network. Also, for data queries, consumers must pay with GRT tokens. Curators use the Graph Token – GRT to vote for and trust a subgraph.

Where to buy and sell The Graph – GRT?

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What do we think about The Graph – GRT?

The Graph is one of the most promising projects out there. It has eased blockchains mechanisms for developers and consumers. The protocol indexes around 26 well-known blockchains globally.

With over 9,000 subgraphs created to date and over 14,000 developers using the protocol, The Graph has quickly grown into a large ecosystem.

It was recently announced that the Graph Foundation awarded the Semiotic team $60 million as a grant for supporting the Protocol’s R&D over the span of 8 years. This will enable them to collaborate with other core dev teams in The Graph ecosystem on research and development focused on artificial intelligence and cryptography.

The Graph also raised $50 million in a funding round led by Tiger Global Management. These proceeds will be used to make grants for other developers and expand in Asia and Europe.

The poor vesting schedule of the project has always been criticized because it has severely impacted the price of GRT.

However, the project has proved to be one of the best indexing tools for many protocols? in the blockchain industry.

The Graph – GRT conclusion

The Graph is a decentralized indexing protocol that has been performing well in terms of development. The future of Graph will be defined by the implementations it can make on top performing blockchains. If this succeeds, The Graph will have its function in this space.

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