The Graph is a decentralised indexing and query protocol for blockchain data. It enables developers to access and retrieve data from blockchains, making building decentralised applications (dApps) easier. It operates similarly to Google’s search engine, but where Google indexes and retrieves data from the internet, The Graph pulls data from blockchains.
How does The Graph work?
The Graph Protocol is built to index data through subgraphs, which can be likened to APIs in traditional web development. Subgraphs serve as essential tools for extracting specific data from a blockchain, which can then be processed and queried using GraphQL, the protocol’s native querying language.
Developers can utilise these subgraphs to easily extract and query specific data from various blockchains, allowing them to build applications that require real-time and accurate blockchain information.
The Graph Node is the primary query engine of the protocol. It continuously scans blockchain network blocks and smart contracts, extracting relevant data and indexing it into subgraphs. The Graph Node’s operation involves interacting with four main types of network participants: Indexes, Curators, Delegators and Consumers.
Indexers: Indexers store and index data from blockchain networks into subgraphs, running Graph Nodes to process queries and earn rewards. They compete for query fees by indexing and serving relevant data to consumers.
Curators: Curators identify high-quality subgraphs by staking the native cryptocurrency of The Graph, GRT. By curating subgraphs, they ensure valuable and accurate data is indexed and accessible to consumers.
Delegators: Delegators stake GRT with indexes to participate in network consensus and earn rewards. They contribute to network security by delegating GRT to trustworthy indexers and sharing rewards based on indexing performance.
Consumers: Consumers query indexed data on The Graph network for decentralised applications, paying query fees to access blockchain information. They include dApp developers, users and other applications requiring blockchain data access.
What is the cryptocurrency of The Graph?
The cryptocurrency of The Graph protocol is GRT (Graph token). Its primary purpose is to incentivise network participants, including indexers, curators, and delegators, to contribute to the indexing and querying of data on the network. GRT is used for staking, governance and receiving rewards for providing and accessing decentralised data through The Graph protocol.
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This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.