What Is The Graph (GRT)?

The Graph (GRT) is a protocol for indexing and accessing blockchain data. The Graph indexes blockchain records from networks like Ethereum in the same way that Google indexes the web. The Graph is a global data layer that runs on top of blockchains and storage networks, acting as a uniting and organizing factor for the decentralization movement. In simple terms, The Graph organizes the data and makes it easy to retrieve it from the blockchain.

Indexing a blockchain is a hard task, and many complex smart contracts that store data on blockchain make it difficult for a DApp to answer a simple query. As per the whitepaper, the Graph protocol aims to make it easy to retrieve data from the blockchain by using subgraphs. According to the protocol, a subgraph seeks to specify which Ethereum data the protocol indexes and how it is being stored. Subgraphs, which are open APIs (application programming interfaces), organize this information that anybody may use to query. Subsequently, with just a few keystrokes, this data can be transformed, categorized, and shared across apps for anyone to query. All data is saved and processed in a secure manner on open networks. The Graph protocol aims to query this data quickly, reliably, and securely.

In simpler terms, The Graph seeks to serve as an integration layer for DApps, as applications in the same domain require a mechanism to collaborate and agree on standardized names to query data. Consequently, applications use a query for operations such as filtering, sorting, and grouping to locate data from large data sets. These query executions further necessitate the creation and maintenance of indexes, without which the executions would be unreasonably slow. Therefore, to achieve a balanced ecosystem, all of this needs economic rewards. Accordingly, The Graph aims to provide this infrastructure layer for Web3.

The Graph is administered by an open network of participants, including indexers, who run the servers that supply data; curators, who organize data; and delegators, who stake their tokens to provide security to the network. These participants feed data to Web3 applications and offer services to the network. Subsequently, consumers interact with the apps and consume the information. As a result, The Graph network aims to build an open marketplace of indexers and curators that collaborate to index and provide all DeFi and Web3 data in a decentralized manner.

Deployed on the Ethereum blockchain, GRT is the native token of The Graph and is the platform’s cryptocurrency. GRT is an ERC20-based work token and is primarily utilized for allocating resources in the network. Participants stake and utilize Graph tokens (GRT) to maintain the economic security of the network and the integrity of data queried. Active indexers, curators, and delegators may provide services and earn revenue from the network based on their work and how much GRT they own. 

History of The Graph (GRT)

The Graph protocol was launched in July 2018, cofounded by Brandon Ramirez, Yaniv Tal, and Jannis Pohlmann. Since January 2019, The Graph has been offering a hosted service with over 2,900 subgraphs for Web3 and DeFi apps. The idea of the Graph ecosystem was conceived and developed by Graph Protocol Incorporation, which was later renamed Edge & Node. Further in 2020, The Graph Foundation was announced to support the diverse network and the various network participants. Eva Beylin was nominated as the director of the foundation. She is experienced in financials, data, and business strategy and worked with OmiseGO and EF.

How Are GRT Created & Staked?

In the Graph network, contributors such as the indexers, delegators, and curators need to stake GRT to participate. Accordingly, indexers stake GRT to supply services in the query market, and delegators delegate GRT to indexers. Further, the curators signal GRT on subgraphs to indicate the subgraphs that are to be indexed.

The network aims to reward the indexers that stake GRT in the marketplace through query fees for indexing services and sending queries to subgraphs. Additionally, both the indexers and delegators earn GRT in the form of indexing rewards, a new coin issue distributed proportionally to curator signal and allotted stake.

Notably, consumers are The Graph’s end users, who query subgraphs and pay query fees to indexers, curators, and delegators. These consumers, according to the network, are expected to be developers or projects that spend query fees for their apps in the same way that they would pay for cloud services. Some applications, however, pass on query fees to users or include the expense in product pricing. The Graph network seeks to enable consumers to pay query fees using gateways or wallets that open-source contracts develop on the network.

How Many GRT Are Available in the Market?

The Graph network reports a maximum total supply of GRT as 10 billion tokens during the mainnet launch.

How to Buy GRT Tokens?

The GRT tokens can be easily traded using exchanges like Coinbase.