By indexing blockchain data The Graph (GRT) works similarly to how search engines index the web. This data is grouped into open APIs called subgraphs and is provided to decentralised finance (or DeFi) applications like DEXs for effective operations. The Graph is working to bring reliable decentralised public infrastructure to the mainstream market. To read more about The Graph (GRT), be sure to head over to the full SpectroCoin blog post.
The Graph is an indexing protocol for querying data for networks like Ethereum, PoA and IPFS. In simple terms, the platform is an open-sourced software that can collect, process and store data from various blockchains. Through this process, The Graph can power many applications in both DeFi and the Web3 ecosystem. The platform aims to help make decentralised applications (DApps) more effective while providing data for the developers. Uses can stake GRT to perform their roles and earn fees from the network.
Originally launched on the Ethereum blockchain, the platform allows developers to build various APIs called subgraphs that use the GraphQL to perform queries. Anyone can develop and publish these APIs. This functionality makes searching for data on the blockchain more convenient. As of right now, there are around 3,000 subgraphs for DApps like Synthetix, Uniswap, Decentraland and others. Users can refer to Graph Explorer to browse the subgraphs that already exist on the platform.
The data indexing process starts by looking up decentralised applications that add data to the blockchain using smart contracts. The Graph Node scan data, collect all newly found data of the blockchain and filter out those relevant to users’ queries. After the Nodes sort the data and display it on the GraphQL, users can view their query results within their applications.
The Graph Token
The Graph (GRT) is an Ethereum token that powers The Graph platform. The native ERC-20 token is used for the allocation of resources within the network, thus ensuring the integrity of the data within the network. Users called Indexers, Curators, and Delegators can earn in proportion to their GRT stake. Indexers profit by maintaining the indexing function of the platform, while curators profit by validating the quality of subgraphs on the network. Delegators delegate their GRT to indexers and earn a portion of the rewards.
Shortly, the platform is planning to add Decentralized Autonomous Organization (DAO) – The Graph Council to the platform. This DAO would be the decentralised management of the Graph and allow stakeholders to participate in protocol decisions such as funding allocation decisions, protocol upgrades, protocol parameters and more.
The Graph is very relevant due to the current boom of the DeFi space. The platform makes it faster and easier to receive data from the blockchain. Developers can quickly receive data reliably and securely and bridge the gap between applications and blockchain.
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