Covalent Provides A Unified API Bringing Visibility To Billions Of Blockchain Data Points.

What Is Covalent (CQT)?

Covalent leverages big-data technologies to create meaning from hundreds of billions of data points, delivering actionable insights to investors and allowing developers to allocate resources to higher-utility goals within their organization.

Instead of painstakingly sourcing data from a small handful of chains, Covalent aggregates information from across dozens of sources including nodes, chains and data feeds. The Covalent API then sources end-users with individualized data by wallet, including current and historical investment performance across all types of digital assets. Most importantly, Covalent returns this data in a rapid and consistent manner, incorporating all relevant data within one API interface.

Having achieved product-market fit, we are now planning to execute the next phase of Covalent, which is a progressive decentralization that will enable the Covalent Network to be owned and operated by its users. Of course, a critical piece to this is CQT.

CQT is the native token of the Covalent Network. It has three primary purposes:

  • CQT is a governance token, whereby token holders vote on proposals to change the system parameters.
  • CQT is a staking asset. Validators will earn fees for answering queries.
  • CQT is a network access token that fulfills data queries for users of the API.

How Does Covalent Work?


The Covalent software can be used to index the entire history of blockchains, including every smart contract, wallet address, transaction and more.

This indexed data, regardless of its blockchain source, is normalized into the same format, which Covalent calls ‘block-specimens.’

Covalent enables users to query data from various blockchains through one unified API. A detailed overview of the Covalent Blockchain Data API can be found here.

In order to deliver greater access to blockchain data, various roles are needed for data retrieval, storage, and query processes:

  • Validators ensure data integrity and accuracy as well as honest participant behavior. In order to become a validator, a user must stake CQT tokens and, if they act maliciously, their staked tokens can be slashed. 
     
  • Block-Specimen Producers compete to gather timely and accurate data from the various blockchains Covalent aggregates by running a node on those chains. Once blockchain data has been collected, Block-Specimen Producers publish the data to a storage node (which they can also run) and receive a CQT reward.
     
  • Indexers race to produce and publish results to the Covalent network. Their job is to fetch the data, check the data for accuracy and publish these results to the storage network.
     
  • Storage-Request Responders fetch the data requested by Covalent’s end users, wrap the signed request, and submit this information to the Covalent chain. Storage-request responders work directly with other nodes, allowing them to compare prices and capabilities offered by other network participants.
     
  • Query Request Responders fulfill a similar role to storage-request responders on the Covalent blockchain, but rather than utilizing existing internal data maintained on the chain, query nodes mostly handle external requests submitted from Covalent’s API.
     
  • Directory Service Nodes help Covalent customers find the ideal nodes that match the specific resource and capabilities that they require, at their given price point for a specific  data request.

What’s outstanding about Covalent?

Covalent will use the Moonbeam blockchain as a settlement layer which is now ready to launch as a parachain on Polkadot. Covalent makes its difference in its features:

  • Complete Granular Visibility

Covalent has indexed and decrypted the entire blockchain to make it available to developers through a unified API. Visibility to billions of blockchain data points for every single wallet.

Covalent does not require developers to write code or understand the nuances of blockchain data structures. From there can reach users who are not technical people.

  • Single API for multiple blockchains

Covalent API simplifies the sophistication of different blockchains with a single unified API.

  • Primer Transformation engine

An internal transformation language inspired by the MongoDB query language. With Primer, developers can select only the fields they want and aggregate more data to suit their needs. All of this is done at query time in real time.

The data is further decoded into a format that is immediately usable by the developer. No need to find ABI or write custom decryption code.

  • Decentralized Indexing-Querying middleware

Covalent Network features and fully decentralized storage with low fees and high throughput.

Covalent Network

In April 2021, Covalent announced upgrades to the platform. The Covalent Network is a “decentralized data infrastructure layer of Web 3.0” that aims to remove the single-point-of-failure that could pose a risk to the Covalent platform. Now, the network is a decentralized blockchain data API controlled by CQT token holders.

The newly decentralized Covalent Network serves as a global virtual cooperative for blockchain data. Also, the Network will use Moonbeam as a settlement layer, which is due to launch as a Polkadot parachain.

Covalent Block Explorer – CQTScan

CQTScan is the native block explorer of the Covalent Network and works in a similar way to Etherscan, the popular Ethereum block explorer. However, CQTScan enables users to gain valuable insights into datasets and data structures throughout the network. This includes block times, miner addresses, total blocks, and total transactions. Plus, CQTScan provides advanced cross-chain visibility for various data points on multiple assets. 

Blog Web3 development

Furthermore, CQTScan gives users an indication of the health of the network. This includes the total number of validators and the amount of CQT tokens staked. Future releases are to include additional insights into block production and API query performance.

Governance

Holders of the Covalent Query Token (CQT) can participate in protocol governance. This involves participating in governance discussions and voting on proposals to make changes to the Covalent platform.

Through this governance mechanism, the CQT token holder community can discuss and propose improvements and amendments to the development of network technologies. Plus, protocol governance provides a chance for the community to take part in meaningful discussions about the future direction of the platform.

Moreover, this governance mechanism is another step towards full decentralization of the Covalent Network, allowing community members to help direct the future of the Covalent platform.

Covalent Alchemist Ambassador Program

The Covalent Alchemist Ambassador Program extends the project community by bringing forward leaders in blockchain and Web3 development throughout the network ecosystem. The Covalent Alchemist Ambassador program aims to assist in the growth and development of the community while shaping data infrastructures of progressive technologies.

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Covalent Alchemists are self-sufficient, autonomous team players who frequently display their commitment to the project. By doing this, the project aids in the support and growth of new Covalent technologies while providing the necessary coaching and tooling to help developers succeed.

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