The Graph is a decentralized search and data collection platform that allows blockchain applications to manage the data they store, search for, and use.
The Graph is a decentralized search and data collection platform that allows blockchain applications to manage the data they store, search for, and use.
In computing, a query is a search term that is used to find specific data, essential to operating information-based systems like the internet. The Graph allows blockchain applications and developers to organise and search for (known as indexing and querying) data in a more usable format to help increase data accessibility for APIs and decentralized applications (dapps).
The Graph uses the GRT token to perform numerous ecosystem purposes including staking, delegating, contribution to network governance, and payment to network participants.
Who created The Graph?
The Graph was founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann and launched on mainnet in December 2020. The project is supported by The Graph Foundation, who coordinates and supports The Graph Network efforts, and Edge and Node, a software development company.
The Graph’s development is provisioned through five other entities which received grants from The Graph Foundation including Graph Ops and Messari.
In October 2020, The Graph Foundation initiated its public token sale, raising a total of $12 million by selling 400 million GRT. The project also sold 17% of its total supply to early investors to raise an additional $7.5 million between April 2018 and June 2020.
How does The Graph work?
The Graph is built to index data through subgraphs, which are graphs used to extract data from a blockchain so it can easily be processed and queried via its native querying language called GraphQL.
With subgraphs, developers can serve, index, and make use of blockchain-agnostic data in a verifiable manner, and build serverless applications (such as Uniswap, Aave, or Decentraland) which run on public infrastructure.
The Graph carries out this process through the Graph Node (the network’s main query and search motor), which continuously scans network blocks and smart contracts via an interconnected system that makes use of four main types of network participants. These include:
- Indexers – stake a minimum of 100,000 GRT to operate a node on the network and maintain the integrity of querying and indexing processes.
- Delegators – delegate GRT to Indexers to secure the network without having to run a node. Delegators receive a portion of query fees as a result.
- Curators – signal high-quality subgraphs that should be indexed on the network in exchange for GRT. Curators can be subgraph developers, data customers, or other community members.
- Developers – participate in The Graph Network by building subgraphs. Developers are also responsible for querying data via the GraphQL to power dapps.
When an application sends data to Ethereum (or any other EVM-compatible chain) via a smart contract to be added to the blockchain (such as transaction and app interaction data), the smart contract emits an event stating that a transaction is being processed on-chain.
The Graph Node then indexes that data to the correct subgraphs and continues to do so as new blocks are added to the blockchain. Dapps can then scan the Graph Node for data and translate it to a simpler, application-readable format intended for app uses.
How does GRT work?
The GRT crypto coin incentivizes network participants (Indexers, Curators, and Delegators) via staking, payments, and delegation to perform subgraph queries. GRT is also used to help carry out governance voting processes.
The Graph token distribution
GRT’s total supply is capped at 10 billion tokens. The Graph Foundation created a target issuance rate of 3% per year to reward Indexers for allocating GRT to subgraphs, while burning (or destroying) 1% of its total supply each year, meaning the total supply will increase by 2% yearly, with future increases subject to change.
Of the total supply, 35 % GRT was allocated to the community, 23% to early team and advisors, 17% to backers, 17% to early backers, and 8% to Edge and Node. The Graph unlocks vesting tokens during a 2- to 10-year time span, with 2 to 5 years for most participants and 10-year vesting for The Graph Foundation.
THE GRAPH ESSENTIALS
The Graph is a decentralized search and data collection platform that organizes and provides data for applications, blockchains, and developers using a graph-like structure.
The Graph is made up of the Graph Node (the master search motor), subgraphs (APIs), the GraphQL (a query language), along with various types of network participants – Indexers, Delegators, Curators, and developers.
GRT coin fulfills numerous purposes within The Graph ecosystem including network governance, as medium of exchange, and a reward mechanism for network participants.
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