Graph is the Google for blockchain networks like Ethereum. Understand the mechanism, usage, graph participants roles and the reason to buy The Graph (GRT).
What Is The Graph? What Is GRAPH Used For?
The Graph is to the blockchain what search engines are to the web. Simply put, in the way search engines like Google indexes the web, The Graphs indexes the blockchain data within the networks like Filecoin and Ethereum.
Therefore, The Graph is the decentralised protocol for indexing and querying data from the blockchains. This data is then grouped into open APIs that are called subgraphs. Subgraphs can be queried by anyone. Developers resort to GraphQL API in order to query data. By making the data accessible, The Graph provides these data to Decentralised Finance (DeFi) applications like DEXs to operate effectively.
Mechanism
The Graph is powered by the Ethereum token GRT (Graph Token). GRT is the cryptocurrency central to Graph’s economy, and you can easily buy GRT through Cryptocurrency Exchange. The Graph works with Ethereum and Inter-Planetary File Systems (IPFS), thus making it easy to build and publish Application Program Interfaces (APIs). This means that those applications built on The Graph won’t be needing a centralised server to operate.
What is Graph Used For?
The Graph network is an intermediary between the decentralised applications and the blockchains. It facilitates the communication between the two using the query language GraphQL. The graph network comprises the users who need to process their queries. At the back end, curators, indexers, and delegators make it happen.
The Graph network aims to allow apps to become serverless. That means the data of users of any application won’t be stored in a single server, and they no longer need to rely on a single server or database. Instead, the apps will operate on a network of nodes. These nodes are incentivised to keep running the services.
The Graph Participant’s Roles
Primarily, four participants are involved.
Indexers
They operate nodes in The Graph network and earn the Graph Token (GRT) in exchange for providing query processing and indexing services. They earn index rewards and query fees.
Curators
They develop sub-graphs and signal indexers to determine which APIs should be indexed by The Graph Networks. The curators deposit the GRT in a Bonding Curve. They signal to a specific subgraph against which they earn a portion of the query fees. As everything happens on a Bonding Curve, the sooner a curator signals, the higher query fees they earn for specified GRT deposited.
Delegators
Delegators are the ones who do not run the graph nodes themselves but aim to contribute to the network. They delegate GRT to the indexers against a portion of the indexing rewards and query fees in return. They select indexers on their performance basis and measures like past slashing, query fees rates, etc.
Consumers
They are the end-users of The Graphs and pay query fees to the indexers, curators, and delegators. In most cases, consumers are the developers and the projects paying query fees for their applications.
Reason to Buy GRT
GRT is the token and is a medium of exchange within The Graph ecosystem. Currently, over 4 billion monthly queries are processed by the services hosted by The Graph. Therefore, it has enabled us to conveniently search any data on Ethereum through queries. This is the primary reason to buy GRT through a cryptocurrency exchange. The exchange will facilitate INR to GRT and GRT to INR in a convenient and hassle-free manner.
Bottom Line
The Graph is redefining the way applications will work. Shifting from Web 2.0 that enabled interaction on the platforms working in a centralised way, networks like The Graph are the enablers of Web 3.0, the decentralised internet. Ultimately, crypto is the future, and you can start trading on platforms like ZebPay to be a part of this revolution.
