The Graph – A New Sparkling Decentralized Future

• The Graph project has had one of the largest financing rounds, selling about 400 million tokens and raising funds estimated to $12 million.

• The Graph solves the problem of getting data sources by gaining and preparing information and offering it directly to consumers. The platform has APIs in the form of subgraphs to integrate with applications and query other networks.

• The project uses AMM to automate transactions, and its network is divided into four groups: indexers, curators, delegators, and consumers.

The Graph is an indexing protocol used to query several networks of the crypto industry such as IPFS (InterPlanetary File System), Filecoin, Ethereum, and many more. Ever since the crypto industry gained popularity, the use cases of cryptocurrencies have constantly been widened up. This also forced many applications to depend on third-party data sources served by an indexer. The Graph solves this problem by being the biggest provider of data sources that prepares data and makes it available to all. The Graph also serves as a platform for all to use their APIs to acquire data, called subgraphs, and develop and publish new subgraphs open for all.

Biggest Financing Round

The Graph hosted its ICO (Initial Coin Offering) in October 2020 and raised about $12 million by selling 400 million GRT tokens to about 4500 investors. The financing round became one of the biggest, similar to Near Protocolo and Avalanche. The Graph was finally launched on 17 December 2020 and had been running on the mainnet ever since. Before the public ICO hosting, private financing was also conducted in which investments of about 7.5 million were made by Multicoin Capital and Coinbase ventures.

The GRT Token

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The GRT token has an average trading price of $0.695 in the past week and is currently trading at $0.6485 (at the time of writing). The token has been down by 0.43% in the last 24 hours. It already has a market cap of over $3 billion with an all-time high of $2.88. The current circulating supply of the token is 4.72 billion, of the max supply cap set at 10 billion.

The Graph aims to retrieve data from various protocols and prepare it for easy access of users to use it directly from data sources in their applications. However, the risk of getting data that has been manipulated to earn false profits constantly crawls in the ecosystem. This is because any trading platform that wants to make quick bucks can quote higher rates on their website and transfer this false data to many.

Similarly, smart contracts also depend on data sources at times. AMMs (Automated Market Makers) are utilized to automate transactions and trading of cryptocurrencies, although they do need some verifiable data like market capitalization and prices of trading, which under some specific conditions trigger smart contracts.

Elements Of The Graph Network

The complete network of The Graph is made up of four separate groups, which are:

• Indexers – The indexers are the one who serves data, and anyone who does so has to operate their node separately. The GRT token is required to run a node, which the operators could stake as well. If any provider serves false data or wrong information, he is penalized, and a portion of his deposit is debited, which forces indexers to offer genuine and precise information.

• Curators – These decide that if a source is trustworthy or not and whether or not it should be indexed as subgraphs. Curators do this by putting some GRT tokens in the subgraph, and later they get a return as a share of the fee.

• Delegators – Delegators do not operate a separate node, but they participate in an existing node. The primary operation of the Delegator is to contribute to securing the network by depositing shares in the indexers. They profit by earning a part of the node’s fee.

• Consumers – The end-level of the network, which includes users who would wanna purchase data. This level can include anyone from dapps to trading platforms. 

Is The Graph A Good Project

The Graph has managed to gain attraction and traction simultaneously, primarily due to bullish token prices. However, the aim and work behind the project cannot be ignored, it is just another factor for its massive growth ever since its launch. Many investors believe that due to its massive functionalities in the ecosystem, it is worth investing in, and the prices might rise in the future. Still, ensure thorough research before landing on any investment decisions.