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What Is The Graph (GRT)?
The Graph is an indexing protocol for querying data for networks like Ethereum and IPFS, powering many applications in both DeFi and the broader Web3 ecosystem. Anyone can build and publish open APIs, called subgraphs, that applications can query using GraphQL to retrieve blockchain data. There is a hosted service in production that makes it easy for developers to get started building on The Graph and the decentralized network will be launching later this year. The Graph currently supports indexing data from Ethereum, IPFS and POA, with more networks coming soon.
To learn more about this project, check out our deep dive of The Graph.
To date, over 3,000 subgraphs have been deployed by thousands of developers, for DApps like Uniswap, Synthetix, Aragon, AAVE, Gnosis, Balancer, Livepeer, DAOstack, Decentraland and many others. The Graph usage has been growing at over 50% MoM and hit over 7 billion queries during the month of September 2020.
The Graph has a global community, including over 200 Indexer Nodes in the testnet and more than 2,000 Curators in the Curator Program as of October 2020. To fund network development, The Graph raised funds from community members, strategic VCs and influential individuals in the blockchain community including Coinbase Ventures, DCG, Framework, ParaFi Capital, CoinFund, DTC, Multicoin, Reciprocal Ventures, SPC, Tally Capital and others. The Graph Foundation also successfully completed a public GRT Sale with participation from 99 countries (not including the U.S.). To date as of November 2020, The Graph has raised ~$25M.
History Of The Graph (GRT) Crypto
The Graph Network and its token, GRT, are a very new type of cryptocurrency. As of spring 2021, GRT has been on the crypto markets for less than a year.
The team behind the Graph Network includes a slew of industry veterans, and the founding team consists of Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann. They started working on the Graph back in 2017, finally seeing the project come to fruition a few years later.
In October 2020, The Graph Foundation sold roughly $12 million worth of GRT during its initial public sale, comprising 400 million tokens. The Graph protocol launched in December 2020, giving GRT utility.
Some traders or investors have not yet heard about GRT because it’s still very new to the market, but it has gained ground with larger investors. Ten holders control more than half of GRT’s supply.
How Does The Graph Work?
The Graph’s first step for aggregating data happens through the Graph Nodes, who continuously scan network blocks and smart contracts for information.
When an application adds data to the blockchain through smart contracts, the Graph Node adds the data from these new blocks to its appropriate Subgraphs.
Once the Graph Node extracts information, there are three types of users who contribute to organizing data in its protocol.
- Curators – Subgraph developers who assess which subgraphs are of high quality and need to be indexed by The Graph. Of note, Curators attach GRT to the subgraphs they believe in.
- Indexers – Node operators tasked with providing indexing and querying services for the signaled subgraphs, and must stake GRT in order to provide these services.
- Delegators – Delegate GRT to indexers in order to contribute to running the network without installing a node.
All users earn a portion of the network fees for their work, dependent on their role.
This data can then be easily accessed by applications seeking information that will help them run their software through the use of queries.
For example, Decentraland accesses The Graph’s information to find land, accessories and collectibles across applications and brings them into their marketplace, allowing users to purchase them from a central location.
The Graph Token (GRT)
The Graph Token, or $GRT, is its native ERC-20-based token that can serve as a medium of exchange and a reward for community participants who act as indexers, curators, and delegators.
For users to acquire shares in the nodes that run the entire platform and sell their services on the “query market,” they must stake their GRT. In return, they receive financial rewards. If the indexers are malicious and, for example, intentionally alter data, they will be punished dearly in the form of having their staked GRT tokens taken away.
The Graph Roadmap: What’s next?
Now that the mainnet has launched, The Graph continues to build. The team has stated that the Graph Foundation will build a production-ready Graph Explorer dApp and Gateway, which should give all supporters of the network the right help at their fingertips.
The Graph is also open to any individuals or third parties who want to help build the network. As mentioned earlier, anyone can apply for the grants program or collaborate with other community members.
What Makes The Graph Unique?
The Graph is working to bring reliable decentralized public infrastructure to the mainstream market. To ensure economic security of The Graph Network and the integrity of data being queried, participants use Graph Token (GRT). GRT is a work token that is locked-up by Indexers, Curators and Delegators in order to provide indexing and curating services to the network.
GRT will be an ERC-20 token on the Ethereum blockchain, used to allocate resources in the network. Active Indexers, Curators and Delegators can earn income from the network proportional to the amount of work they perform and their GRT stake. Indexers earn indexing rewards (new issuance) and query fees, while Curators earn a portion of query fees for the subgraphs they signal on. Delegators earn a portion of income earned by the Indexer they delegate to.
What Are The GRT Features?
The Graph Network acts as a bridge between blockchains and decentralized apps, allowing the two to connect securely and efficiently via GraphQL, a query language. Users who want query processing and are ready to pay for it make up the Network. As a result, there are indexers, curators, and delegators on the back end.
Some of these users serve as GRT stakers, assisting those who operate nodes and answering inquiries. Users must, however, own a specific amount of GRT token to use nodes where the token enters the picture.
GRT allows resources inside the Graph Network and serves as a motivator for users to keep it functioning. Processing queries, developing APIs, and so forth are examples of what this may entail.
The Graph Network functions similarly to Ethereum in that users utilize the Network for their purposes, and GRT tokens enable network transactions. Outside of the Graph environment, GRT has some usage, but not much. Its worth comes from the Network’s usefulness, which is why crypto traders and investors may want to add it to their portfolios.
The Graph Aspects
The following are some of the ecosystem’s elements that aid in the process:
The operations of the Graph are made more accessible by subgraphs. They are in charge of determining the data from Ethereum, and how it will be there. Developers may use the Graph to create and publish a variety of APIs, which are then into subgraphs.
The Graph currently has around 2300 subgraphs, which may be via the GraphQL API.
The node in a graph.
The presence of nodes additionally aids the Graph’s activities. To answer the subgraph questions, they find critical information, and the nodes do this by scanning the blockchain database for relevant data that matches the users’ requests.
Each Subgraph on the Network has its own Subgraph Manifest. This Manifest explains the Subgraph and includes critical details concerning blockchain events, intelligent contracts, and event data mapping protocols.
The native token of the Graph is GRT (Graph Token). To make governance choices, the Network looks to the token. In addition, the token allows for smooth value movement over the globe. Users earn GRT in the Graph. Aside from the incentives they get, investors who own the token have certain additional rights. GRT tokens have a maximum supply of 10,000,000,000 coins.
The Foundation of the Network, Graph, intends to make it more widely used. It also wants to boost network innovation by supporting networks and businesses that use the ecosystem. Contributors may apply for funds via their Grant programs as well. Grants and project money are awarded to any initiative that the Foundation thinks is attractive and sustainable. The Graph supports the Foundation, which donates 1% of all network fees to the Foundation.
The Network’s Council decides the Network’s future development for the time being. They have, however, opted to move toward decentralized network governance as quickly as possible. The team claims that a DAO will be released shortly. Users of the Graph may vote on changes happening in the ecosystem due to all of these advancements.
Curators and Indexers are those who help people find things.
An indexer node manages every indexing function on the Graph’s protocol. Curators may easily find subgraphs with information that can index thanks to the indexers’ activities.
The Indexers’ watchers are the Graph arbitrators, who look for malevolent Indexers. They’ll promptly eliminate any malicious nodes they find.
What Gives The Graph Value?
The Graph has both technical and market value as GRT tokens are traded in the cryptocurrency market. A myriad of specific factors define the value of The Graph and the price of GRT. One thing that gives The Graph value is its blockchain architecture. Factors such as total supply, circulating supply, project roadmap, technical features, mainstream use, regulations, adoption, updates, upgrades, and other important events are what define The Graph’s market value.
The intrinsic value of The Graph is defined by what the project has to offer users and the wider economy, which in this case is highly accessible curation, indexing, and organization of data collected from other networks. The value of The Graph also increased with the launch of its mainnet in 2020 as the project is evolving towards the ultimate goal of achieving a complete decentralization of dApps as a gateway to Web 3.
How Many The Graph (GRT) Coins Are There In Circulation?
The Graph launched with an initial total supply of 10 billion GRT, with new tokens being issued as indexing rewards. The annual GRT issuance rate started at 3% but is subject to future technical governance. The Graph burns the withdrawal tax charged to curators, along with 1% of total protocol query fees, which is also subject to future technical governance. This means that whether GRT is an inflationary or deflationary asset in the future will depend on the amount of queries processed by The Graph.
The number of GRT tokens in circulation multiplied by the current price of The Graph equals the market cap of The Graph, which defines its market rank and market dominance.
Other Technical Data
The Graph uses Subgraph Manifest to index data collected from supported networks, like Ethereum. A subgraph is described by the predetermined rules of the Subgraph Manifest and contains data related to blockchain events and smart contracts before the data is stored on the network and indexed by network participants.
The process starts with dApps adding information to the network with the use of smart contracts, leading to the finality of recorded data. The data contains information about transactions and all other info related to the source. The Graph Node filters that data, and stores it on the network. The information is collected based on the queries by Consumers. Consumers can make a query through a subgraph and get the required information. In the token economy of this model, GRT is used to reward the network participants and pay for services in The Graph marketplace.
How Is The Graph Network Secured?
The Graph network relies on Indexers, Curators, and Delegators to maintain the functions of the network and secure the blockchain. Indexers operate nodes in a decentralized governance model, competing to offer the best services in The Graph market at the most affordable prices.
Curators organize the collected data and classify it by relevance and accuracy, and Delegators secure the network indirectly by delegating their GRT coins to Indexers.
Pros and Cons
How To Choose The Graph Wallet
The Graph (GRT) is an ERC-20 type token, which means that GRT can be stored in any crypto wallet compatible with ETH and ERC-20 tokens. GRT holders can choose from compatible mobile, online, hardware, and desktop wallets.
Some of the most popular hardware wallets where you can store GRT are Ledger Nano S and Trezor One. These are the most secure options as they offer offline storage and backup. However, they also tend to be expensive and require more technical knowledge so may be better suited to more experienced users with larger amounts of GRT.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of GRT or more novice users. Among desktop and mobile wallets, popular choices for storing and securing GRT are Exodus and Coinomi.
Online wallets are also popular and tend to be accessible, free and easy to use. These are considered hot wallets and can be less secure than hardware or software alternatives. Once you buy The Graph on a crypto exchange, you can choose to store it there. However, as you will be trusting the platform to look after your GRT, you should select a reputable service with a track record in security and custody. Online wallets are most suited for holding smaller amounts or for more experienced frequent traders.
Kriptomat offers a secure storage solution, allowing you to both store and trade your GRT tokens without hassle. Storing your GRT with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
The Graph (GRT) Price Prediction And Future Outlook
The Graph (GRT) is based on the Web 3.0 mechanism where all network roles, including the developer, indexer, curator, and delegator, get their fair share from the GRT network. Since the world is currently in the transition period from Web 2.0 to Web 3.0, GRT can bank on its unique features and polish them even further to lead the race of the future on which the web will operate. This will have an automatic effect on the price of the GRT token, which can break the $5 mark once the Web 3.0 tokens start to pump.
It must be noted that Web 3.0 is decentralized and enables connectivity like never before. $27 billion has already been invested in Web 3.0 by institutional investors who are banking on it to be the future of the internet. Ex-CEO of Twitter and many others are the early adopters of Web 3.0, and this trend is expected to skyrocket in 2022.
As the world takes a huge step towards adopting Web 3.0, GRT holders can expect the price of the token to go up significantly. Let’s now discuss the GRT token’s price history and its potential future.
Since its launch back in December 2020, the GRT token has gained over 450% now with its current price holding in the $0.5 range. The token went to an all-time high of $2.84 in February 2021; however, the infamous crypto crash of May 2021 brought it under $1. Since then, the GRT token has gone slightly above $1, however, its average holding price has been $0.5. This, however, is good news for the GRT holders, as many crypto experts believe that the Web 3.0 storm would take GRT back to its all-time highs in 2022. Although the GRT token belongs to the Web 3.0 family and is backed by many crypto experts out there, the high volatility of the crypto market makes it very difficult to predict the timing of the potential price spike.