Web3 protocol for organizing and accessing blockchain data
About the Project
The Graph is a decentralized protocol designed for indexing and querying blockchain data, making it possible to retrieve complex data that is otherwise challenging to access directly from the blockchain. Projects with intricate smart contracts, like Uniswap or NFTs such as Bored Ape Yacht Club, often store their data on the Ethereum blockchain, which complicates the process of querying anything beyond basic information. For instance, while basic read operations like fetching the owner of an Ape or its content URI are straightforward, more advanced queries involving aggregation, search, and filtering are not feasible directly from the contract. To achieve such detailed queries, one would typically need to process numerous transfer events, fetch metadata from IPFS, and perform extensive data aggregation—a task that could take hours or even days. Alternatively, setting up a dedicated server to process transactions and provide an API for querying this data introduces high resource demands, maintenance challenges, and potential single points of failure, undermining the decentralization principles.
The Graph addresses these challenges through its decentralized protocol that indexes blockchain data and allows efficient, high-performance querying. It uses subgraph descriptions, or manifests, which define the smart contracts, events, and data mappings relevant to a subgraph. The Graph's indexers use these manifests to store definitions in IPFS and begin indexing data. Graph Node continuously scans Ethereum for new blocks and relevant subgraph data, updating its database with the results. Dapps can then query this indexed data using GraphQL APIs, enabling them to present rich, interactive user interfaces that efficiently retrieve and display blockchain data. This process enhances the functionality and user experience of decentralized applications by providing rapid access to complex data queries without compromising on security or decentralization.
Use Case
The Graph Network revolutionizes how decentralized applications (dapps) access and utilize blockchain data, offering significant advantages over self-hosted solutions. By leveraging the decentralized protocol, dapps can efficiently query blockchain data through subgraphs without the need for expensive and complex infrastructure. For instance, a decentralized finance (DeFi) platform can utilize The Graph to quickly and reliably access real-time data on token prices, transaction histories, and user balances. This not only reduces operational costs but also enhances the platform's performance and reliability, enabling developers to focus on building innovative features rather than managing backend infrastructure. The scalability and flexibility of The Graph ensure that dapps can handle varying query volumes with ease, from low-volume user applications to high-demand financial services, maintaining superior uptime and performance.
Another compelling use case for The Graph Network is in the realm of non-fungible tokens (NFTs). NFT marketplaces and projects often require extensive data retrieval to display information about digital assets, such as ownership history, metadata, and transaction details. By utilizing The Graph, these platforms can streamline data access, ensuring that users have quick and accurate information at their fingertips. For example, an NFT marketplace can provide seamless browsing and purchasing experiences by querying subgraphs to retrieve and display asset details in real-time. This decentralized approach eliminates the need for costly, centralized servers and reduces the risk of single points of failure, offering a more secure and efficient way to manage and present blockchain data. Through The Graph, NFT projects can achieve higher levels of reliability, performance, and user satisfaction, fostering a more vibrant and resilient digital ecosystem.
Tokenomics
The Graph Network utilizes its native token, GRT, to create a robust ecosystem that incentivizes various network participants and ensures efficient data indexing and querying on blockchain networks. GRT is a utility token that coordinates data providers and consumers, rewarding participants for their contributions to the network. The tokenomics model incorporates several roles: Delegators, Curators, Developers, and Indexers, each playing a crucial part in maintaining and enhancing the network's functionality. Delegators passively earn GRT by delegating their tokens to Indexers, who then secure the network and manage data indexing. Curators identify and signal high-quality subgraphs, earning curation shares and a percentage of future query fees. Developers build and query subgraphs, paying for their queries in GRT, which is distributed among network participants. Indexers, the backbone of The Graph, earn GRT through query fees and indexing rewards, maintaining the network’s decentralized infrastructure.
The Graph’s tokenomics are designed with multiple burning mechanisms to counterbalance new token issuance and maintain a healthy token supply. Initially, the total supply of GRT was set at 10 billion, with an annual issuance rate of 3% to reward Indexers. To offset this inflation, approximately 1% of the GRT supply is burned each year through activities like the 0.5% delegation tax, 1% curation tax, and 1% of query fees. Additionally, the network employs a slashing mechanism to penalize malicious or irresponsible Indexer behavior, further ensuring network security and stability. These economic measures not only promote active participation and fair distribution of rewards but also enhance the overall integrity and sustainability of The Graph Network. Through continuous protocol improvements overseen by The Graph Council and active community engagement, the tokenomics of The Graph Network are ever-evolving to provide the best experience for all participants.