The Graph Review: Why Should You Invest in GRT
The Graph is a Distributed Ledger Technology that facilitates the smooth flow of data from one blockchain to another. Also, The Graph enables dApps to utilize data from other dApps and send data to Ethereum via smart contracts.
The protocol provides the platform where many projects and blockchains can get the data for operational processes. Before the launch of The Graph, there was no other API facilitating indexing and organizing data querying in the crypto space.
Due to the novelty and benefits of this platform, there was a rapid adoption leading to billions of queries in just one year after the launch.
The Graph’s API is cost-efficient, secure, and easy to use. The top DeFi platforms such as Aragon, DAOstack, AAVE, Balancer, Synthetix, and Uniswap are all using The Graph to meet their data needs. Numerous dApps are using the public APIs known as “subgraphs” while others function on the mainnet.
The private sale for The Graph token amounted to $5 million, while the public sale raised $12 million. Some of the companies that funded the private sales include Digital Currency Group, Framework Ventures, and Coinbase Ventures. Also, Multicoin Capital invested $2.5 million into The Graph.
Nodes keep The Graph mainnet running. They also make the environment conducive for both developers and decentralized applications.
But other players like the delegators, indexers, and curators, rely on GRT tokens to join the marketplace. GRT is The Graph’s native token that facilitates the allocation of resources in the ecosystem.
- 1 History of The Graph (GRT)
- 2 How Does The Graph Work?
- 3 Features of The Graph Ecosystem
- 4 Proof of Stake
- 5 What Makes The Graph Unique?
- 6 What Gives The Graph Value?
- 7 How to Buy The Graph (GRT)
- 8 How to Store Graph (GRT)
- 9 The Graph Price
- 10 How To Use The Graph
- 11 Conclusion
History of The Graph (GRT)
After a first-hand experience with difficulty in creating new Dapps on Etheruem, Yaniv Tal got a special inspiration. He desired to create decentralized indexing and querying application since there was none at the time.
This burden propelled him to carry out several works that target developer tools. Through his research, Tal came in contact with Jannis Pohlmann and Brandon Ramirez, who have similar visions. The trio later created The Graph in 2018.
After the creation, The Graph was able to generate a sum of $19.5 million during the token (GRT) sale in 2019. Also, in October 2020, public sales, Graph generated over $10 million.
The Graph experienced a great swing in the crypto world when the Tal team made a full launch of the protocol in 2020. Having the mainnet to decentralize Dapps use completely, the protocol brought an increase in the quantity of subgraph generation.
With the optimum goal of providing accessibility of web 3 to users, the Graph will facilitate Dapps formation by eliminating any centralized authority.
How Does The Graph Work?
The network uses diverse blockchain technology plus other enhanced indexing protocols to ensure efficient querying data. It also depends on GraphQL tech to make sure that each API contains well-described data. There is also the “Graph explorer” that enables users to perform quick scans of the subgraphs.
Developers and other network participants build subgraphs for different decentralized apps through the open APIs. The APIs also serves as a platform where users can send queries, index, and collect data.
Graph nodes on the Graph help scan databases exiting on the blockchain for solutions to queries sent to the subgraphs.
For developers or other users that create subgraphs, the network collects payments in GRT tokens from them. Once a developer indexes data, they’re in charge of it and will specify how the Dapps will use the data.
The indexers, delegators, and Curators all work together to keep the platform running. These participants provide the curating & data indexing that Graph users need and pay for with GRT tokens.
Features of The Graph Ecosystem
Some of the features that facilitate the process in the ecosystem include:
Subgraphs facilitate the operations of the Graph. They are responsible for defining the data to be indexed from Ethereun and how to store it. The Graph allows developers to build & publish diverse APIs, which are then grouped to form subgraphs.
Presently, The Graph contains more than 2300 subgraphs, and users can access the subgraph data through GraphQL API.
Nodes also help to facilitate the operations of the Graph. They locate important information to answer the subgraph questions. To achieve this, the nodes perform scans on the blockchain database to pick the relevant data matching the users’ queries.
There is a Subgraph Manifest for every subgraph on the network. This Manifest describes the subgraph and contains important information about blockchain events, smart contract,s and mapping procedures for event data.
The Graph’s native token is GRT. The network relies on the token to conduct its governance decisions. Also, the token facilitates the seamless transfer of value all over the world. On the Graph, users earn their rewards in GRT. Investors holding the token also have some extra rights apart from the rewards they earn. The maximum supply of the GRT token is 10,000,000,000,
Graph’s foundation aims to facilitate global adoption of the network. It also aims at accelerating the innovation of the network by funding networks and products using the ecosystem. They also have Grant programs that contributors can apply to for grants. Any project that the Foundation finds exciting and sustainable gets grant allocations and project funds. The Graph provides funds to the Foundation by assigning 1% of all fees on the network to it.
For now, the network utilizes its Council for decisions concerning its future development. However, they’ve decided to adopt the decentralized governance approach to network governance soon. According to the team, they’ll soon be launching a DAO. Through all these developments, the Graph users can participate in votings to decide on changes occurring in the ecosystem,
Curators and Indexers
The graph uses an indexer node to maintain every indexing function that occurs on the protocol. Through the actions of the indexers, curators can quickly locate the subgraphs that have the information that can be indexed.
The Graph arbitrators are the observers of the Indexers to identify the malicious ones. Once they identify a malicious node, they’ll remove it immediately.
Staking and Delegators
Users of the Graph GRT can stake it for passive rewards. Also, they can delegate the token to indexers and also earn rewards from the nodes.
These are nodes in the Graph that ensures the accuracy of all the responses provided for the users’ queries.
Proof of Stake
The Graph uses the proof of stake mechanism to carry out its operations. This is why there’re no mining activities on the network. What you will find are delegators that stake their token to indexers who operate the nodes.
For their staking activities, these delegators receive rewards in GRT tokens. As a result, they’re incentivized to participate more in the network. This process results in a more operational and secured Graph Network.
What Makes The Graph Unique?
- Has a unique utility: The graph makes data and information easily accessible to its users. It gives room for one to have easy access to specific information concerning Crypto.
- Resolves indexing issues: It serves as the indexing and the query layer of the decentralized market, the same way Google indexes the web. It has a structural network design supported by indexers whose main duty is to compile various information about blockchain from networks like file coin and Ethereum. This information is grouped into subgraphs and can be accessed by anyone.
- Supports DeFi Projects: The platform is open to Defi projects such as Synthex, UniSwap, and Aave. The Graph has its unique token and also supports major blockchains like Solana, NEAR, Polkadot, and CELO. The Graph serves as a medium, uniting various blockchains and the decentralized application (dapps).
- Subgraph features: Network participants, as well as developers, use the Graph (GRT) tokens to pay for creating and using a subgraph.
What Gives The Graph Value?
The value of the Graph is characterized by the market value of its tokens and the features it offers to its user’s. Some of the conditions that add value to the Graphs are stated below:
- The Graph (GRT) tokens are traded in the Crypto market daily. Its Mainnet that was launched in 2020, helped in increasing its token value.
- The Graphs blockchain architecture, good features that enhance high accessibility to information, organization, and indexing of valuable data sourced from other reliable networks are all good factors that increase the value of the Graph platform.
- Other elements like project roadmap, regulations, total supply, circulating supply, updates, technical features, mainstream use, adoption, and upgrades, define its market value.
How to Buy The Graph (GRT)
The purchase of the Graph token GRT is very simple and easy. Some platforms are readily available to make your purchase of GRT. Some of them include
Kraken – most appropriate for U.S. residents.
Binance – Most appropriate for residents in Canada, Australia, the UK, Singapore, and other parts of the world.
These three steps are involved in making your purchase of GRT:
- Create your account – This is the first step to enable your purchase of the Graph token. The process is free and very simple to complete in just a few minutes.
- Make your account verification – When you want to purchase your GRT, it’s pertinent and mandatory to make a verification of your account. To ensure compliance with regulations, you’ll submit either your passport or a national ID. This is a means of authenticating your identity.
- Make your purchase – Once your account verification is successful, you can go ahead with your purchase. This takes you right into the digital economy for your limitless exploration.
There are several means available for you to make your payments when you buy GRT. This can also be dependent on the particular platform you are using for the purchase. Some of the payment means include Skill, Visa, PayPal, Neteller, etc.
How to Store Graph (GRT)
The Graph (GRT) is an ERC-20 token. Any ERC-20 and ETH compatible wallet can store GRT. It’s easy for holders to select either a compatible software or hardware wallet for storing their GRT.
The use of a hardware wallet is a suitable option if you are investing is on a long-term basis. This implies that you will hold the token for a longer period. The hardware wallet will keep your tokens safe in offline mode. This protects your holdings and prevents possible online threats but is more expensive than the software wallets.
Also, having a hardware wallet demands more technicalities in its maintenance and is more suitable for experienced and old users. Some hardwallets you can use for your GRT include Ledger Nano X, Trezor One, and Ledger Nano S.
The second option of the software wallet is suitable for beginners and new users of crypto tokens, especially with a small volume of GRT.
The wallets are free, and you can easily access them either as desktop or smartphone apps. The software wallets can be custodial, where you will have personal keys that your service provider manages on your behalf.
The non-custodial software wallets operate with some security elements in storing the personal keys on your device. Generally, the software wallets are convenient, free, and easily accessible but less secure than the hardware wallets.
Another option is the exchange wallet that you can use on the platform where you bought the GRT. An exchange such as Coinbase offers a secure and easy-to-use wallet to its users.
Even though these exchanges can be hacked, the wallets facilitate quick transactions. The only thing to do is choose your broker carefully. Go for the ones with commendable and proven track records for security and reliability.
The Graph Price
Several traditional factors can influence the price of the Graph. Some of the influencers include:
- Market sentiments
- Protocol development and news
- Cryptocurrency exchange flow
- Economic situations
- The number of processed queries
- Consumers GRT demands
- Query fees amount
To get more information on the latest news for the price of GRT, you should get yourself connected to the right news sources. This will alert you to possible market change on the Graph price. With that, you will understand when to purchase or dispose of your GRT tokens without making any loss.
If you already own some GRT tokens and wish to sell them, you can do so easily through your exchange wallet. Check out the interface of the exchange and select the payment option you want. Follow the processes which differ from one exchange to another and complete your transaction.
How To Use The Graph
The Graph combines blockchain protocols like advanced indexing and blockchain tech in its application to enhance blockchain data. It depends specifically on a technology known as Graph QL to give a wholesome description of the individual API data. The Graph has an Explorer portal that people can use to easily access the subgraphs available on the portal.
The platform is added by a node (Graph node) used to organize the data by the users of the network. This is achieved because the node can access data stored in the database of blockchains.
Developers can restructure data to specify its usage by Dapps through indexing, thereby creating a balanced decentralized market.
Network participants use the GRT, which is the native token to the protocol, to achieve many purposes on the network. The Graph uses the same token to reward Curators, Delegators, and Indexers. With the token reward, these groups improve and run the network simultaneously.
A Graph Delegator can stake his or her GRT to delegate power to Indexers who’re running the nodes with locked GRT. Curators also earn GRT rewards when they offer their services.
Then Consumers use the network and pay for the services using the native token. Also, the Graphs token serves as the key to unlocking decentralized applications from other networks.
Participants in the network gain GRT, and others can also use the token to carry out trading activities in the market.
The Graph is the first platform that empowers participants to send queries and index data for decentralized applications. It brought in a different solution from what other decentralized markets offer. That’s why there was a massive adoption that skyrocketed its price.
Another thing that makes the project very unique is that the sole aim of its development is to equip its user with easy-to-access data.
The participants assist the developers in running the network while the indexers create the market that facilitates its unique functions. The Graph makes it easier for developers to create decentralized applications by solving their indexing challenges.
The network drives its value from its token price. Another contributing factor to the value is the blockchain architecture. Other factors that increase the Graph value include regulations, technical features, total supply, roadmap, adoption rate, upgrades, mainstream use, updates, etc.
It’s also important to note that the Graph has a lot to offer to the users and the economy. By simplifying the processes of data curation, data indexing, and data organization. The Graph also drives up its intrinsic value. Also, after the mainnet launched in 2020, there was a rapid growth in both users and adoption.