The Graph Network (GRT) is a decentralized protocol that indexes and queries blockchain data, making it easier for developers to access and use complex data from the Ethereum blockchain.
This article explains what The Graph Network is and how it works, including its features and the role of the Graph Native Token (GRT) in network activities. The article also discusses the history of The Graph, its founders, and the team behind it.
Additionally, it explains the value of GRT tokens and where to buy them. Overall, this article provides a comprehensive overview of The Graph Network and its utility token, GRT.
What Is The Graph?
The Graph is a decentralized protocol for indexing and querying blockchain data. The Graph makes it possible to query data that is difficult to query directly. When complex smart contracts store data on the Ethereum blockchain, it can be difficult to query (extract) more than just basic data from the blockchain.
Querying data involves indexing, organizing and retrieving information in a structured manner. Indexing blockchain data is hard. Retrieving accurate query results from blockchain data can be a challenging and time-consuming process due to properties like finality, chain reorganizations, and uncled blocks.
Chain reorganization refers to the process of rearranging previously validated blocks in the chain due to the addition of new blocks or forks. Finality in blockchain refers to the point at which a block or transaction is considered irreversible and permanently added to the blockchain and finally uncled block is a block that is not included in the main blockchain but is still valid.
The Graph offers a solution to this problem with a decentralized protocol that indexes blockchain data and enables efficient querying using a standard GraphQL API.
The protocol features indexed "subgraphs," which can be queried for specific data. The Graph offers both a hosted service and a decentralized protocol with the same capabilities, both of which are supported by the open-source Graph Node implementation.
How Does The Graph Work?
The Graph works by utilizing subgraph descriptions called the subgraph manifest to index and enable efficient querying of blockchain data, particularly the Ethereum blockchain, through the use of a decentralized protocol.
The subgraph manifest specifies the smart contracts of interest for a subgraph, the events in those contracts to pay attention to, and how to map event data to data that The Graph will store in its database.
Once a subgraph manifest is written, it is stored in IPFS using the Graph CLI (Command Line Interface), and the indexer is instructed to start indexing data for that subgraph. The Graph Node is then used to serve queries to data consumers who can easily access the indexed data through standard GraphQL API.
The Graph's flow involves several steps, starting with a decentralized application (dapp) adding data to Ethereum through a smart contract transaction that emits events. Graph Node continuously scans Ethereum for new blocks and data for the subgraph, and when it finds Ethereum events for the subgraph, it runs mapping handlers that create or update data entities stored in response to Ethereum events.
The dapp queries the Graph Node for data indexed from the blockchain using the node's GraphQL endpoint, and the node translates GraphQL queries into queries for the underlying data store to fetch the data. The dapp then displays this data in a UI for end-users to issue new transactions on Ethereum, and the process repeats.
What Is Graph Token GRT?
The Graph native token (GRT) is a utility token that powers The Graph ecosystem. GRT is used by Indexers, Curators, and Delegators to participate in network activities and earn rewards. Indexers stake GRT to provide indexing and querying services to developers who build and deploy subgraphs on The Graph.
Curators stake GRT to signal their confidence in high-quality subgraphs, and they earn a portion of the query fees paid to Indexers. Delegators stake GRT to support their favorite Indexers and Curators, and they receive a share of the rewards earned by their chosen participants.
In addition to being used in network activities, GRT can also be used to pay for services or access features within the ecosystem. The supply of GRT is fixed, and the token has a deflationary monetary policy, with a portion of the query fees burned to reduce the overall supply over time.
GRT Tokenomics
History of Graph Network (GRT)
The Graph was founded by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann, who have engineering backgrounds and worked together for 5-8 years. Tal and Ramirez studied electrical engineering at USC and previously co-founded a developer tools startup together. They spent a significant portion of their careers working to optimize the API stack, including at MuleSoft, which underwent an IPO and was sold to Salesforce.
The Graph was born from their vision to create immutable APIs and data access, using the GraphQL query language. The team includes professionals from various industries, including Ethereum Foundation, OpenZeppelin, Decentraland, Orchid, Puppet, Redhat, and Barclays.
Features of Graph Network
The Graph Network (GRT) is a decentralized protocol that provides a powerful infrastructure for indexing and querying data from blockchains. One of the most attractive features of the Graph Network is its ability to provide seamless data integration across multiple blockchains, including Ethereum, BNB Chain, and Polygon.
This feature enables developers to easily access and use data from different blockchains without writing custom smart contracts for the task, this makes it easier and faster to build decentralized applications.
The Graph Network's flexible and robust indexing system enables developers to query blockchain data quickly and efficiently. A vast network of Indexers powers the system, staking GRT to offer indexing services and earn rewards. This structure encourages Indexers to provide quality and dependable indexing services, making it easier for developers to access the data they require to build their applications.
The Graph Network features Indexers rewards to node operators who process and index data on The Graph Network. They receive GRT tokens for their work, which incentivizes them to provide high-quality indexing services. The Graph Network also features Delegator rewards. Users can stake their GRT tokens with the indexer to earn a portion of the reward gained by the indexer.
The Graph Network also features curator rewards, curators are community members who identify and signal valuable subgraphs on The Graph Network. They receive GRT tokens for their contributions, which incentivizes them to help identify high-quality subgraphs.
GRT Token Value
The value of the GRT token is determined by market supply and demand, and its demand is likely to increase as The Graph Network expands. The current trading price of the GRT token is $0.12, but its value is not solely determined by its price in the market. The Graph Network's growing user base and the token incentives it offers, such as Indexer, Delegator, and Curator rewards, add value to GRT holders. As more developers and users adopt The Graph Network, the demand for GRT tokens is likely to increase, which could drive up its price.
How to Buy GRT Tokens?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including GRT, users can now trade easily and seamlessly. To purchase GRT on CoinEx, follow the steps below.
- Register or Log-In: To use CoinEx, either register by clicking "Register" or login if you have an account.
- Deposit Fiat or Crypto: Once you create or log into your CoinEx account, you can fund it using various deposit methods. CoinEx allows deposits using other cryptocurrencies that can be traded for GRT tokens.
- Locate GRT Trading Pairs: On the trading page of your funded CoinEx account, search for GRT trading pairs and select the pair that matches your deposited token, such as "GRT/USDT" for USDT deposits.
- Buy/Trade GRT Tokens: Buying GRT tokens is easy once you select the right trading pair. Simply specify the desired number of GRT tokens and trade the paired token for GRT.
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