The Graph (GRT)

The exchange rate of one GRT at 14:52 UTC is 0.302$

Chart | Average rate

Cryptocurrencies are gradually finding more and more use in many areas. These include, for example, digitization and Web 3.0, with blockchain also playing an important role. Many applications rely on external data sources provided by the indexer. “The Graph” is considered one of the leading providers that processes and provides data to users.

At the same time, the protocol uses its own cryptocurrency called “The Graph” (GRT). It is an ERC20 token based on the Ethereum blockchain. This is a utility token that allows users to participate in the protocol themselves (for example, offer or receive data).

While still a young project, it may already be in high demand. For example, Uniswap and Coingecko are among the clients that request and provide data over the protocol. Investors include Multicoin, Coinbase Ventures and Digital Currency Group.

GRT: the exciting ICO of 2020

Since December 17, 2020, the protocol has been running on the main network. The ICO took place in October 2020 and brought in $12 million. A total of 400 million OTO’s were sold to 4,500 investors. This makes the project one of the largest funding rounds, apart from, for example, Avalanche and Near. Currently, the market capitalization is already 3,706,262,212 euros.

In addition, there was private funding prior to the public ICO. At the same time, Coinbase Ventures ($5 million) and Multicoin Capital ($2.5 million) invested in the project.

What problem does GRT solve?

The Graph is aimed at receiving and processing data from various protocols (for example, Ethereum or Filecoin). This gives users easy access to data sources and allows direct use of the information. Developers can get this data and use it for their application.

With external resources, there is a risk that the data will be deliberately manipulated and therefore not correspond to reality. For example, a trading platform provider may list a higher price on their website and benefit from it.

Smart contracts also depend on independent data sources. Automated Market Maker (AMM) are protocols that automate the trading of cryptocurrencies. However, you will need verifiable data such as trading prices and market capitalization in order to run smart contracts under certain conditions.

How does The Graph solve the problem?

The project is a decentralized Oracle solution that processes data from blockchains for further use. This uses so-called subgraphs, which can be compared to an application programming interface (API). They can be embedded in various data acquisition programs.

“Graph Network is a decentralized indexing protocol for organizing blockchain data. Applications use GraphQL to query public APIs called subgraphs and retrieve data indexed on the network. The Graph allows developers to build serverless applications that run entirely on a public infrastructure.” - the Graph website

In this case, the network is largely supported by four groups: indexers, curators, delegates, and consumers.

Indexers

Those who wish to offer data must run their own node. This requires a GRT token that the node operator can use. If the supplier provides erroneous or incorrect data, he receives a penalty and loses part of his deposit. Thus, the supplier aims to sell only the correct data.

Curators

Curators decide if a source is reliable and provides valuable data. They signal indexers which subgraphs should be indexed by the network. This is done by placing GRT tokens in the appropriate subgraph. You will then receive a share of the fees.

Delegates

These are the participants who deposit shares in the indexers and thus contribute to the protection of the network.

Consumers

These are the end users who want to acquire quality data. These can be trading platforms and decentralized applications. You pay indexers and then you can integrate the provided data into your application using the API.