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The Graph (GRT) is a decentralized indexing protocol that organizes and indexes blockchain data, primarily from Ethereum-based projects, to facilitate information retrieval. It uses a utility token, GRT, to power its network, which includes curators, indexers, and delegators. The Graph aims to support the transition to a decentralized internet, known as web3, by providing a secure and reliable way to access blockchain data.
The Graph (GRT) is used in several ways:
Network Contributors: GRT is used by indexers, curators, and delegators within the network. Indexers process queries and stake GRT tokens to contribute. Curators evaluate subgraphs and stake GRT to show trust. Delegators stake GRT to support indexers and receive rewards.
Medium of Exchange: GRT serves as a payment asset for services within and outside the ecosystem. Consumers use GRT to pay for query processing and access to data from platforms like Decentraland, Uniswap, and Aave.
Philanthropic Activities: GRT is used for charitable donations and is accepted by over 250 non-profit organizations through The Giving Block. Charities can participate as curators, delegators, or indexers, and GRT donations offer tax benefits.
Decentralized Finance (DeFi): The Graph improves access to blockchain data used in DeFi applications, making it easier to build and maintain DeFi platforms.
Non-Fungible Tokens (NFTs): GRT facilitates the creation and usage of NFTs by streamlining access to blockchain data, promoting the development of NFT marketplaces and related apps.
To store The Graph (GRT) tokens, you can use any hot or cold wallet that supports ERC-20 tokens. Here are some options:
Guarda Wallet: Guarda is a non-custodial, multi-currency wallet that supports over 400,000 assets, including GRT. You can create an online wallet or download a mobile app for PC, Mac, iOS, or Android. It offers a user-friendly interface for buying, sending, receiving, and storing GRT tokens securely.
Binance: You can also use Binance to store and manage your GRT tokens. Binance provides a comprehensive platform for trading, including margin trading and futures contracts.
Ledger Wallet: Ledger Nano X is a popular cold wallet option. Since GRT is an ERC-20 token, you can store it using the Ethereum app on Ledger Live. Simply search for GRT under the "Receive" section to add it to your wallet.
MyEtherWallet: MyEtherWallet (MEW) is another option for storing GRT tokens. MEW offers a user-friendly interface for managing your GRT tokens and accessing The Graph's tools and services.
Koinly: Koinly is a platform that helps with tax calculations for cryptocurrencies. It integrates with various wallets and supports GRT tokens. You can store your GRT tokens in any ERC-20 compatible wallet and then connect it to Koinly for tax purposes.
Remember to always store your tokens securely by following best practices for wallet management and security.
To buy The Graph (GRT) tokens, follow these steps:
Choose a reputable exchange: Select a reliable cryptocurrency exchange that supports GRT trading. Some popular options include Uphold, SpectroCoin, Kraken, Coinbase, and Kriptomat.
Create an account: Sign up for an account on the chosen exchange. This typically involves verifying your email address and identity.
Add funds: Deposit money into your account using a debit card, credit card, wire transfer, or Bitcoin (BTC).
Select GRT: Navigate to the exchange's trading platform and select The Graph (GRT) as the cryptocurrency you want to purchase.
Enter the amount: Input the amount you want to spend in your local currency. The exchange will automatically convert this to the equivalent GRT amount.
Preview and confirm: Review the transaction details and confirm your purchase.
- Complete the transaction: Once confirmed, the GRT tokens will be added to your account.
Remember to research each exchange's fees, security, and user reviews before making a purchase.
The Graph (GRT) was founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann. The founders recognized the need to improve access to decentralized data for application developers, as current centralized structures were inadequate. They designed The Graph to be a decentralized query protocol that streamlines communication between blockchain-based applications, allowing developers to easily generate APIs (subgraphs) to collect and organize data from various blockchain networks, including Ethereum and InterPlanetary File System (IPFS).
Funding and DevelopmentThe Graph raised nearly $25 million from high-profile investors, including Coinbase Ventures, Digital Currency Group, and Framework Ventures, to support the growth and development of its project. The team worked on building and launching its platform, which successfully deployed in October 2020. The first public sale of GRT was held at that time, although only a small fraction of the total supply was sold during the event.
Key Milestones- 2018: The Graph was launched on the Ethereum blockchain by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann.
- 2019: The team raised around $19.5 million through token sales.
- June 2020: The Graph raised $5 million in a token sale to Framework Ventures, Coinbase Ventures, CoinDesk parent Digital Currency Group, Multicoin Capital, DTC Capital, and others.
- October 2020: The governance of the network was turned over to an independent network called The Graph Foundation, with Eva Beylin nominated as director. The Graph raised $12 million in a public sale of its native GRT token.
- December 2020: The Graph mainnet was launched.
- January 2022: The Graph Foundation raised $50 million in a sale of digital tokens to investors led by Tiger Global Management.
- February 2022: A group of venture capital firms announced the launch of a $205 million ecosystem fund to support developers building on The Graph protocol.
- 2021: Sommelier announced a $1 million R&D grant from The Graph Foundation.
- December 2021: The Graph awarded a $48 million grant to The Guild to join The Graph as a core developer.
The Graph has experienced rapid growth, demonstrating the relevance of its solution to data access problems in the decentralized world. Today, it is considered an important technology in the field of decentralized applications and blockchain, providing fast and secure access to decentralized data for developers around the world.
The Graph (GRT) is a decentralized indexing system designed to simplify access to blockchain data, making it easier for developers to build decentralized applications (DApps). Here's how it works:
Data Collection and IndexingThe Graph collects data from various blockchain networks, including Ethereum, Avalanche, Arbitrum, and more. This data is organized into indices called subgraphs, which are open-source APIs that can be built and published by developers. Subgraphs contain information such as smart contracts, blockchain events, and data mapping procedures.
Querying DataWhen a user wants to query data, they identify the relevant subgraph and define their query. The Graph Node then scans the entire blockchain database to gather the relevant data, which is then returned to the user. This process allows developers to quickly access and analyze data from blockchain networks, making DApp development more efficient.
GRT Token and GovernanceThe Graph's native token, GRT, is used for staking, rewards, and payments within the ecosystem. GRT holders also have governance rights, which will become more significant as the platform transitions to a decentralized governance model through a decentralized autonomous organization (DAO).
Roles in the EcosystemThe Graph ecosystem involves various roles, including:
- Indexers: Responsible for maintaining the indexing function of the platform.
- Curators: Oversee the quality and accuracy of the data.
- Delegators: Stake their GRT tokens to support indexers and earn rewards.
- Fishermen: Monitor the network for malicious activity.
- Arbitrators: Resolve disputes between different parties.
The Graph has several use cases, particularly in decentralized finance (DeFi) and nonfungible tokens (NFTs). It improves access to blockchain data, making it easier to build and maintain DeFi applications and NFT marketplaces.
Future DevelopmentsThe Graph plans to integrate artificial intelligence (AI) into its querying system to enhance efficiency and speed. Additionally, the platform will continue to expand its support for multiple blockchain networks, further increasing its utility and adoption.
The Graph (GRT) has several strengths that make it a significant player in the blockchain ecosystem:
Enhanced Data Access: The Graph provides easy and efficient access to blockchain data, allowing developers to create more sophisticated and user-friendly decentralized applications (dApps). This enhanced data access is critical for the adoption and growth of blockchain technologies.
Decentralized Security: The decentralized nature of The Graph's network architecture enhances the security and integrity of blockchain data. By distributing data indexing and querying processes across a vast network of nodes, The Graph minimizes risks associated with centralization and ensures that data remains secure and tamper-proof.
Economic Incentives: The economic model of The Graph, centered around the GRT token, incentivizes participation and contribution across the network. By rewarding indexers, curators, and delegators with GRT for their roles in maintaining and securing the network, The Graph ensures a continuous cycle of investment and growth.
Scalability and Speed: The Graph provides fast and scalable access to data by indexing Subgraphs, making it easier for developers to integrate applications with blockchain data and improve the user experience.
Governance and Economic Incentives: The Graph protocol operates on a token-based economy, where GRT holders can participate in governance processes and vote on decisions. This ensures that the network is governed in a decentralized manner, aligning with the principles of blockchain technology.
Permissionless Subgraph Creation: The Graph allows anyone to create subgraphs, which are open APIs that provide data to applications. This permissionless nature encourages innovation and the development of new applications that can leverage blockchain data.
- Multi-Chain Support: The Graph supports multiple blockchain networks, including Ethereum, Optimism, Polygon, zkSync, and Arbitrum One, among others. This broad support increases the demand for GRT tokens and enhances the overall utility of the network.
These strengths position The Graph as a key technology for decentralized data management and querying, making it an attractive option for developers and users alike.
The Graph (GRT) carries several risks that investors should be aware of. One of the primary risks is its susceptibility to market sentiments, which can lead to sharp and sudden movements in its value. This volatility makes it challenging to predict its performance, especially during times of economic uncertainty.
Another significant risk is the possibility that GRT might not survive a crypto winter, a period of prolonged low prices in the cryptocurrency market. This risk is heightened by the current risk-averse climate, which has already led to significant losses for GRT investors.
Additionally, GRT, being an ERC20 token, carries both benefits and risks. While it offers compatibility, security, and transparency, it also faces potential pitfalls such as market dependency, unexpected losses, and hacking risks.
Overall, investing in GRT involves a high level of risk, and investors should carefully consider these factors before making a decision.
- Yaniv Tal: Project lead and co-founder of The Graph, also the CEO and co-founder of Edge & Node.
- Brandon Ramirez: Co-founder of The Graph and Edge & Node.
- Jannis Pohlmann: Co-founder of The Graph and Edge & Node.
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