What is cryptocurrency The Graph (GRT) and how does it work?

What Is The Graph (GRT)?

The Graph is an open-source protocol based on DLT (Distributed Ledger Technology), designed in the spirit of decentralization to collect blockchain data with no third parties involved. The protocol represents a global API for indexing, organizing, and querying data that is made easily accessible and is processed through the GraphQL programming language.

With the launch of The Graph mainnet, the team paved the way to complete decentralization of applications, creating a network of service providers where decentralized apps can operate no matter what and blockchain data is easily accessible.  With open and public APIs called subgraphs, thousands of dApps can operate on the network, while The Graph mainnet is already hosting hundreds.

The Graph had both a public and a private sale, raising $12 million from their public token sale. The project raised a further $5 million from a private sale funded by Coinbase Ventures, Digital Currency Group, and Framework Ventures. Multicoin Capital also invested $2.5 million in The Graph.

The network relies on nodes to run The Graph mainnet and provides a perfect environment for dApps and developers, while indexers, curators, and delegators participate in the marketplace with GRT tokens. GRT is the native cryptocurrency of The Graph network and is used to allocate different resources used within The Graph ecosystem.

How Does The Graph Work?

As DeFi (decentralized finance) is gaining more traction, The Graph protocol is also becoming more relevant in the wider crypto economy. The Graph protocol enables developers and network participants to use public and open APIs to build subgraphs for various dApps, and for querying, indexing, and collecting data. In April 2021 alone, The Graph’s hosted service processed 20 billion queries.

The network is supported by the Graph Node which scans the blockchain database used by network participants to organize data. Developers and network participants can use GRT tokens to pay for using and creating a subgraph. By indexing data, developers can define the structure of data in terms of specifying the way that it should be used by dApps. Indexers create a decentralized market for queries where consumers can pay in GRT to use services available on the network.

The network is structured to be supported by Delegators, Indexers, and Curators who provide curating and indexing services to consumers in return for GRT tokens. This is how the market participants are incentivized to keep improving APIs and provide data with accuracy. On top of The Graph Network, consumers who query subgraphs can pay network participants in GRT tokens through a gateway. In The Graph network hierarchy, Indexers are node operators that stake GRT tokens to enable indexing and querying. Network users can build and use apps on Ethereum, IPFS, and PoA through GraphQL while more networks should be accessible in the future.

Who Are the Founders of The Graph? (History of The Graph)

The Graph was founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann. Tal was motivated by his personal experience of how difficult it can be to create new dApps on Ethereum. Together with his team, Yaniv Tal created The Graph with the idea to design and launch the first decentralized indexing and querying app as there was nothing similar on the market at that point.

In 2020, the team launched The Graph mainnet as a step forward to fully decentralize the use of dApps, which also increased the volume of subgraph generation on the network. The ultimate goal of the project is to make Web 3 accessible to anyone and enable the creation of dApps without the need for servers or a centralized authority.

What Makes The Graph (GRT) Unique?

The Graph network launched as the first blockchain project of its kind. As the first decentralized market for querying and indexing data for dApps, The Graph has a unique utility. This makes it an interesting project in the sector of blockchain and cryptocurrencies, which may also be reflected in The Graph’s price.

The uniqueness of the project also derives from its purpose, which is to provide easily accessible data for consumers on The Graph network. The protocol is run with the support of the network participants, where Indexers have the role of node operators to create a unique market for indexing and querying data from different blockchain sources in the form of networks such as Ethereum.

The Graph is the first decentralized marketplace that tackles the difficulties associated with the creation of dApps in terms of resolving indexing issues and proprietary concerns.

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.

The Graph GRT

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Bitcoin BTC

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Ethereum ETH

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XRP XRP

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How To Use The Graph

The Graph network is used to enable uninterrupted functioning and creation of dApps, as well as to source and use data collected from blockchain networks. The native token, GRT, is used by all network participants for different purposes. GRT is essential in the network’s reward system as Indexers, Curators, and Delegators are incentivized to improve the market and run it at the same time.

Delegators can stake their GRT tokens to delegate their holdings to Indexers who use locked GRT to run the nodes on the network. Curators are also rewarded in GRT for their curation services, and Consumers are network users who pay for index services in GRT. GRT tokens are also used to unlock dApps available through The Graph blockchain and interoperable networks. The network participants earn money in the form of GRT, while GRT can also be traded on the crypto market.

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.

Buying and selling GRT, or exchanging it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

The Graph Proof of Stake

The Graph can’t be mined and the system operates based on the Proof-of-Stake consensus mechanism. Delegators on the network can stake their GRT by delegating it to node operators (Indexers). Delegators are incentivized to participate in the network by the rewards they receive, ensuring that the network is secured and operational.

Conclusion

The Graph is a unique project that creates a new and decentralized market for accessible data sourced through interoperability between The Graph mainnet and supported networks. The ultimate goal of The Graph’s creators is to make Web 3 easily accessible while creating an advanced ecosystem with DLT architecture where dApps can operate without interruptions. The Graph can also be traded in the crypto market, and traders and investors can buy and sell GRT to make a profit.

The Graph FAQ

How To Buy The Graph

If you are wondering how to buy The Graph, you’ll be thrilled to know that buying and selling GRT can be easily done on Kriptomat with a range of payment methods. You can open a free account and start trading The Graph today.

How To Sell The Graph

If you already own The Graph (GRT) and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

The Graph Price

The Graph price is influenced by a lot of the traditional factors such as project news and developments, market sentiment, the flow of cryptocurrency on exchanges and the economy in general. In addition to these factors, GRT’s price is also influenced by the number of queries the protocol processes, as this determines both the amount of GRT demand from Consumers and the amount of query fees being burned.

Stay up-to-date on the latest price action for The Graph and other important cryptocurrency stats by checking out The Graph price page on Kriptomat. You can also use the site to set up alerts so you never miss a change in the market.

The current The Graph (GRT) price is EUR.

The 24-hour trading volume of GRT is EUR. GRT is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of GRT.

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