Graph: The Decentralized Indexing Protocol Powering Data Access in DeFi and Web3

Graph: Everything You Need to Know

Graph (GRT) is an open-source and decentralized indexing protocol for blockchain data. It is designed to enable querying on the Ethereum network. Graph network also enables developers to build various APIs known as subgraphs for separate queries.

Graph aims to provide a secure, transparent, and efficient platform for accessing data from blockchains such as Ethereum and IPFS, powering many applications in both DeFi and the broader Web3 ecosystem. Graph uses two native tokens, GRT and cGRT, to power its network and enable value transfer and governance. GRT is the primary token that represents the value of the network, while cGRT is the secondary token that is used for staking and voting on the network.

How does Graph work?

Graph operates on a dual-token model that separates the cost of using the network from the market value of the token. This allows the network to maintain a stable and predictable fee structure for users and developers. GRT holders can stake their tokens in nodes called indexers, who are responsible for processing queries and providing data to the network. Indexers earn rewards in GRT and query fees in cGRT for their services.

Graph also employs a unique consensus mechanism called Proof of Indexing (PoI), which relies on a network of validators to verify the correctness and consistency of the data provided by indexers. Validators stake cGRT tokens and randomly audit indexers’ work. PoI ensures high performance, scalability, and security for the network, while avoiding issues such as centralization, wasteful energy consumption, and low data quality that plague other consensus models.

Who is the team behind Graph?

Graph is led by co-founder and CEO Yaniv Tal, a former CIO of Louis Vuitton China, who has extensive experience in IT and luxury goods industries. Tal is joined by co-founder and CTO Jannis Pohlmann, a former senior engineer at OpenZeppelin, who oversees the technical development of Graph. The team also consists of other experts in blockchain, business development, marketing, legal, and research fields.

Graph has also established strategic partnerships with various enterprises, institutions, and organizations across different sectors and regions. Some of the notable partners include Coinbase, Uniswap, Synthetix, AAVE, Balancer, Livepeer, Decentraland, Chainlink, Compound, MakerDAO, and more. These partners leverage Graph’s technology to enhance their business processes, products, and services with blockchain data solutions.

What are the use cases of Graph?

Graph offers a wide range of use cases for different industries and scenarios that require trustless data sharing, queryability, and verification. Some of the use cases are:

DeFi: Graph enables DeFi applications to access real-time and historical data from various protocols such as lending, borrowing, trading, staking, etc. This allows users to compare rates, optimize strategies, monitor performance, and execute transactions on the blockchain.

NFTs: Graph enables NFT applications to access metadata and provenance information from various platforms such as marketplaces, collections, creators, etc. This allows users to discover, buy, sell, trade, and collect digital assets on the blockchain.

DAOs: Graph enables DAOs to access governance data from various platforms such as proposals, votes, members, policies, etc. This allows users to participate in decision-making processes, manage funds, coordinate actions, and enforce rules on the blockchain.

Web3: Graph enables Web3 applications to access any kind of data from any kind of source on the blockchain. This allows users to interact with decentralized websites, social networks, games, media platforms, etc. without relying on intermediaries or centralized servers.