The GRAPH : The New Google Web3
Is The Graph (GRT) a Good Investment ? Next Google ?
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This week, in less than 5 minutes, we'll cover these topics :
I. What is The Graph ?
II. How does The Graph work?
Who are the founders of The Graph? (History of The Graph)
What makes the Graph (GRT) unique?
What gives value to The Graph?
How many The Graph (GRT) coins are there in circulation?
Other technical data
How secure is The Graph network?
III. What is The Graph? How to use The Graph
How to choose a The Graph wallet?
The Graph Proof of Stake
IV. Conclusion
Let’s get started !
I. What is The Graph?
The Graph is an open-source protocol based on DLT (Distributed Ledger Technology or distributed ledger), designed in the spirit of decentralization to collect data from the blockchain without the intervention of third parties. The protocol represents a global API for indexing, organizing, and querying data that is made easily accessible and processed by the GraphQL programming language.
With the launch of The Graph mainnet, the team paved the way for full application decentralization, creating a network of service providers where decentralized applications (dApps) can run no matter what and where data from the blockchain are easily accessible. Thanks to open and public APIs called subgraphs, thousands of dApps can run on the network, while the mainnet The Graph already hosts hundreds.
The Graph (white paper) completed both a public sale and a private sale, raising $12 million in its public token sale. The project raised an additional $5 million in a private sale funded by Coinbase Ventures, Digital Currency Group, and Framework Ventures. Multicoin Capital has also invested $2.5 million in The Graph.
The network relies on nodes to run The Graph mainnet and provides a perfect environment for dApps and developers, while indexers, curators and delegates participate in the market with GRT tokens. GRT is the native cryptocurrency of The Graph network and is used to allocate the various resources used in The Graph ecosystem.
II. How does The Graph work?
As DeFi (decentralized finance) grows in popularity, The Graph protocol is also becoming more relevant in the broader crypto economy. The Graph protocol allows developers and network participants to use public and open APIs to build subgraphs for various dApps, and to query, index, and collect data. In April 2021 alone, The Graph's hosted service handled 20 billion requests.
The network is supported by The Graph Node which analyzes the blockchain database used by network participants to organize data. Developers and network participants can use GRT tokens to pay for the use and creation of a subgraph. By indexing data, developers can define the structure of data specifying how it should be used by dApps. Indexers create a decentralized marketplace for queries where consumers can pay in GRT to use the services available on the network.
The network is structured to be supported by delegates, indexers, and custodians who provide custodial and indexing services to consumers in exchange for GRT tokens. This is how market players are incentivized to keep improving APIs and providing accurate data. On top of The Graph network, consumers querying sub-graphs can pay network participants in GRT tokens through a portal. In The Graph network hierarchy, indexers are node operators that stake GRT tokens to enable indexing and querying. Network users can create and use applications on Ethereum, IPFS and PoA through GraphQL. Other networks should be accessible in the future.
Who are the founders of The Graph? (History of The Graph)
The Graph was founded in 2018 by Yaniv Tal, Brandon Ramirez and Jannis Pohlmann. Tal was motivated by his personal experience of the difficulty of creating new dApps on Ethereum. Together with his team, Yaniv Tal created The Graph with the idea of ​​designing and launching the first decentralized indexing and querying application, because there was nothing similar on the market at that time.
In 2020, the team launched The Graph mainnet as a step towards completely decentralizing the use of dApps, which also increased the volume of subgraph generation on the network. The ultimate goal of the project is to make Web 3 accessible to everyone and allow the creation of dApps without the need for servers or centralized authority.
What makes the Graph (GRT) unique?
The Graph network was launched as the first blockchain project of its kind. As the first decentralized data query and indexing marketplace for dApps, The Graph has a unique utility. This makes it an interesting project in the blockchain and cryptocurrency sector, which can also be reflected in the price of The Graph.
The uniqueness of the project also lies in its goal, which is to provide easily accessible data to consumers on The Graph network. The protocol is run with the support of network participants, where indexers act as node operators to create a single market for indexing and querying data from different blockchain sources in the form of networks like Ethereum.
The Graph is the first decentralized marketplace that tackles the challenges of building dApps in terms of solving indexing and ownership issues.
What gives value to The Graph?
The Graph has both technical and market value, as GRT tokens are traded on the cryptocurrency market. Many specific factors define the value of The Graph and the price of GRT. One thing that gives value to The Graph is its blockchain architecture. Factors such as total supply, circulating supply, project roadmap, technical characteristics, common use, regulation, adoption, updates, upgrades and other significant events define the market value of The Graph.
The intrinsic value of The Graph is defined by what the project has to offer users and the wider economy, which in this case is highly accessible curation, indexing, and organization of data collected across d other networks. The value of The Graph has also increased with the launch of its mainnet in 2020, as the project evolves towards the ultimate goal of achieving full decentralization of dApps as a portal to Web 3.
How many The Graph (GRT) coins are there in circulation?
The Graph was launched with an initial total supply of 10 billion GRT, with new tokens being issued as indexing rewards. The annual TSO emission rate started at 3% but is subject to future technical governance. The Graph burns the withdrawal fee charged to custodians, as well as 1% of the total protocol query fee, which is also subject to future technical governance. This means that whether the FIT is an inflationary or deflationary asset in the future will depend on the amount of queries processed by The Graph.
The number of GRT tokens in circulation multiplied by the current price of The Graph equals the market capitalization of The Graph, which defines its rank and dominance in the market.
Other technical data
The Graph uses Subgraph Manifest to index data collected from supported networks, such as Ethereum. A subgraph is described by the predetermined rules of the Subgraph Manifest and contains data related to blockchain events and smart contracts before the data is stored on the network and indexed by network participants.
The process begins with dApps adding information to the network using smart contracts, which leads to the finality of the recorded data. This data contains transaction information and all other source-related information. The graph node filters this data and stores it on the network. The information is collected based on consumer queries. Consumers can make a request through a subgraph and get the required information. In the token economy of this model, GRT is used to reward network participants and pay for services on The Graph marketplace.
How secure is The Graph network?
The Graph network relies on indexers, curators, and delegates to maintain network functions and secure the blockchain. Indexers operate nodes in a decentralized governance model, competing to offer the best services on The Graph market at the most affordable prices.
Curators organize collected data and classify it according to relevance and accuracy, and delegates indirectly secure the network by delegating their GRT coins to indexers.
III. How to use The Graph
The Graph network is used to enable the uninterrupted operation and creation of dApps, as well as to source and use data collected on blockchain networks. The native token, GRT, is used by all network participants for different purposes. The GRT is essential in the network's reward system, as indexers, custodians, and delegates are incentivized to improve the market and keep it working at the same time.
Delegates can stake their GRT tokens to delegate their holdings to indexers who use locked GRTs to operate network nodes. Curators are also rewarded in GRT for their curation services, and consumers are network users who pay for indexing services in GRT. GRT tokens are also used to unlock dApps available on The Graph blockchain and interoperable networks. Network participants earn money in the form of GRTs, while GRTs can also be traded in the crypto market.
IV. How to choose a The Graph wallet?
The Graph (GRT) is an ERC-20 type token, which means that GRT can be stored in any crypto wallet compatible with ETH and ERC-20 tokens. GRT holders can choose from compatible mobile, online, hardware and desktop wallets.
Some of the most popular hardware wallets where you can store TRG are Ledger Nano S and Trezor One. These are the safest options as they offer offline storage and backup. However, they also tend to be expensive and require more technical knowledge. They are therefore more suitable for more experienced users who have large amounts of TRG.
Software wallets are another option and are free and easy to use. They can be downloaded as apps for smartphones or desktop computers and can be guarded or unguarded. In the case of custodial wallets, the private keys are managed and stored on your behalf by the service provider. Non-custodial wallets use secure elements on your device to store private keys. Although convenient, they are considered less secure than hardware wallets and may be better suited to smaller amounts of TRG or more novice users. Among desktop and mobile wallets, popular choices for storing and securing FITs are Exodus and Coinomi.
Online wallets are also popular and tend to be accessible, free and easy to use. They are considered hot wallets and may be less secure than hardware or software alternatives. Once you have purchased The Graph from a cryptocurrency trading platform, you can choose to store it there. However, since you will be trusting the platform to take care of your FIT, you should choose a reputable service with a track record in security and custody. Online wallets are more suitable for holding small amounts or more experienced frequent traders.
Kriptomat offers a secure storage solution that allows you to store and trade your GRT tokens seamlessly. By storing your GRT tokens with Kriptomat, you benefit from enterprise-grade security and user-friendly functionality.
Buying and selling GRT, or exchanging it for any other cryptocurrency, is done in moments when you choose our secure platform as your storage solution.
V. The Graph Proof of Stake
The chart cannot be mined and the system works based on the Proof-of-Stake consensus mechanism. Network delegates can put their TSO into play by delegating it to node operators (indexers). Delegates are incentivized to participate in the network by the rewards they receive, which ensures that the network is secure and operational.
VII. Conclusion
The Graph is a unique project that creates a new decentralized marketplace for accessible data through interoperability between The Graph mainnet and supported networks. The ultimate goal of the creators of The Graph is to make Web 3 easily accessible while creating an advanced ecosystem with a DLT architecture where dApps can run uninterrupted. The Graph can also be traded on the cryptocurrency market, and traders and investors can buy and sell GRT for profit.