Hey there, Cryptoniacs! Buckle up for an eye-opening expedition into the captivating world of "The Graph." Despite its name, this isn't your typical charting gig; it's more like the conductor orchestrating the digital ensemble of decentralization.
Imagine The Graph as your astute guide, skillfully navigating the maze of blockchain data, much like a seasoned curator at a cutting-edge tech exhibition. This project wrangles the complexities of the crypto realm while adding its unique touch.
While I'm currently holding GRT, I'll strive for impartiality in sharing insights, as always.
The Graph, established in 2018 by Brandon Ramirez, has undergone two successful rounds of fundraising, amassing a total of $55.00M in funding. Its most recent financing round occurred on January 21, 2022, resulting in a significant influx of $50.00M in venture capital.
Here's the lowdown without the tech lingo jargon overload:
The Magic Weaver: Picture this - you've got a vast universe of blockchain data scattered everywhere. Enter The Graph, the magical weaver that stitches all this scattered data into a beautiful tapestry that decentralized apps (dApps) can actually understand and use. It's like giving dApps a GPS in the vast expanse of blockchain.
Query, Please! No, it's not the local coffee shop. The Graph allows developers to query blockchain data quickly, efficiently, and without losing their minds. Think Google, but for blockchain data - quick, precise, and hassle-free.
Data Democracy: Imagine a world where every dApp developer, big or small, has access to the same quality of data without jumping through hoops. The Graph is all about democratizing data access, making it an equal playing field for everyone in the crypto sandbox.
Decentralization Dance: Here's the funny part - The Graph is the ultimate party organizer in the decentralized realm. It throws a data party where dApps mingle and dance with all the info they need, without anyone controlling the music or charging an entry fee.
Puzzle Solver: Ever tried solving a thousand-piece jigsaw puzzle in the dark? Yeah, blockchain data can feel like that sometimes. The Graph is the light that illuminates the pieces, making sense of the blockchain puzzle with elegance and finesse.
So, in a nutshell, The Graph is like the Sherlock Holmes of blockchain data, solving mysteries and making sense of the chaos.
And hey, don't let the tech jargon scare you! The Graph is here to make the world of decentralized data not just accessible but downright enjoyable. So let's delve into the intricacies of this unique crypto project through their White Paper (WP). I'll share key insights that, in my opinion, offer a comprehensive view of how this incredible endeavor operates.
A large amount of data resides in silos that are centrally controlled by a handful of corporations.
Web-era apps like Google, Facebook, YouTube, LinkedIn, and Salesforce are built on these data
monopolies. This centralization puts tremendous power into the hands of a few and reduces
economic opportunity and self-determination for many.
Decentralized Applications (dApps) put users in control of their data. dApps are built using data
that is either owned and managed by the community or is private and controlled by the user.
This way many products and services can be built on pluggable datasets and users can freely
switch between dApps. We believe that this will create wide-scale economic opportunity as
more products are able to compete in a fair and open market and mechanisms are put in place
to incentivize people to contribute to a larger and farther-reaching public commons.
To make this vision a reality, there needs to be an interoperability layer for dApps. Applications
building in the same domain need a way to coordinate and agree on standardized names. They
also need a common way to query data. Applications use queries to find data in larger datasets.
Queries generally include operations like filtering, pagination, sorting, grouping, and joining
result sets. Executing queries requires creating and maintaining indexes, without which running
the queries would be prohibitively slow. All of this requires economic incentives to produce a
flourishing ecosystem. The Graph provides this infrastructure layer for Web3, an emerging web
application stack.
An established decentralized Query Execution Layer shown in Figure 1 does not currently exist.
Without a decentralized Query Execution Layer for Web3, dApp developers must resort to building custom
indexing servers on an ad-hoc basis. This introduces a centralized component and
requires engineering and devops resources to build and maintain. Providing a decentralized
Query Execution Layer would allow dApp developers to ship more reliable dApps faster with
fewer resources. It would also enable dApps to become fully decentralized.
A Decentralized Query Protocol is defined to be a collection of rules by which clients pay a decentralized network of nodes for indexing, caching, and querying data that is stored on public blockchains and decentralized storage networks such as IPFS/Swarm.
In order to enable a new class of data-intensive dApps, a Decentralized Query Protocol must
meet the following requirements:
1. Trust without verification—a client should be able to trust the results of queries without independently verifying each query or loading the underlying raw data.
2. Metering—a client should be able to efficiently pay for each query processed by the network, with minimal counterparty risk for either the client or the nodes.
3. Predictable performance—the client should be able to pay for predictable performance for queries that are run against specific data sources.
4. Data availability—a client should be able to pay to keep the data available for running queries against specific data sources.
5. Price efficiency—clients should be able to pay for queries, performance, and data availability in efficient and competitive marketplaces.
6. Incentive alignment—incentives should be aligned between clients, nodes, and dApp developers to encourage growth of the network and positive network effects.
The Graph implements a Decentralized Query Protocol, which enables users to query a network for data without having to operate any centralized infrastructure for indexing and caching.
The protocol synthesizes ideas from distributed computing and crypto-economics to produce a network that is self-organizing, robust, and secure.
Protocol Stack
The Graph can be divided into a stack of sub-protocols which can be treated conceptually as
distinct interoperable layers, as shown in Figure 2.
1. Consensus Layer—responsible for smart contract execution and payment settlement.
2. Peer-to-peer (P2P) Network—defines how nodes locate and connect to each other.
3. Storage Layer—data stored on public blockchains or content addressable networks.
4. Query Processing—how a query is routed to a specific node for processing.
5. Payment Channels—facilitates fast and low-cost payments in the system.
6. Governance—manages schemas, data sources, and disputes.
7. Query Marketplace—mechanism by which users pay nodes for specific queries.
8. Indexing and Caching Marketplace—mechanism by which users pay nodes for indexing
and caching data sources.
The Graph introduces a new token, Graph Tokens, which play a vital role in securing and governing the network. Each of the uses for the token will be described alongside their respective related sub-protocols and summarized in the Token Economics section of this document.
Hey Cryptoniacs! Let's fast-forward past the technical jargon in the WP and dive straight into the Tokenomics. If you're eager to explore everything about The Graph, I highly recommend checking out the White Paper.
Here's the link to their official website.
Graph Tokens are used to secure and govern the network and to incentivize behaviors that are
critical for the network to thrive. Token mechanics are described in relevant sections of the
protocol, but we provide here a consolidated list of the mechanisms that involve tokens, and
how specific economic agents interact with the tokens.
• Are bonded by Query Nodes to participate in the Query Marketplace as well as the Indexing
and Caching Marketplace.
• Are bonded by Validators to participate in voting in on-chain Disputes.
• Are staked by Challengers to create a Dispute.
• Are paid to Validators through token inflation.
• Are paid to Data Source curators through token inflation.
• Are used in decentralized governance mechanisms for a specific Data Source (i.e. Token
Curated Registries).
• May be used as fees in the Query Marketplace as well as the Indexing and Caching Marketplace.
The initial token supply is 10 billion GRT, with a target of 3% new issuance annually to reward Indexers for allocating stake on subgraphs. This means that the total supply of GRT tokens will increase by 3% each year as new tokens are issued to Indexers for their contribution to the network.
The Graph is designed with multiple burning mechanisms to offset new token issuance. Approximately 1% of the GRT supply is burned annually through various activities on the network, and this number has been increasing as network activity continues to grow. These burning activities include a 0.5% delegation tax whenever a Delegator delegates GRT to an Indexer, a 1% curation tax when Curators signal on a subgraph, and a 1% of query fees for blockchain data.
In addition to these regularly occurring burning activities, the GRT token also has a slashing mechanism in place to penalize malicious or irresponsible behavior by Indexers. If an Indexer is slashed, 50% of their indexing rewards for the epoch are burned (while the other half goes to the fisherman), and their self-stake is slashed by 2.5%, with half of this amount being burned. This helps to ensure that Indexers have a strong incentive to act in the best interests of the network and to contribute to its security and stability.
🔍Pros:
🔍Cons:
In conclusion, I believe that The Graph presents itself as a strong investment opportunity, particularly for the medium to long term. Its innovative technology, growing adoption, and dedicated community contribute to its potential success in the evolving crypto landscape.
However, it's crucial to remember the volatile nature of the market and the uncertainties involved in investing. While The Graph shows promise, investments in cryptocurrencies always carry risks, and it's essential to conduct thorough research before making any investment decisions.
As a reminder, I am not a financial advisor, and the content provided here is for informational purposes only. Always 'Do Your Own Research' (DYOR) and consider consulting with a financial professional before making any investment choices.
Now let' s have a laugh together, I shared down here probably one of the most hilarious crypto meme videos I've ever seen! Created by @MiningCave Inc. it's an absolute riot! Check it out down below and prepare for a laugh marathon!
Don' t forget to check out and follow our IG and X pages @Cryptoniacsblog if you don't want to miss anything that breathes crypto.
Signing off with a dose of Arnold Schwarznegger vibes: "That's it, that's all!".
Until we meet again, stay true, stay cryptoniac.
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