The Graph Price GRT

What is The Graph?

The Graph is open-source software that collects, processes and stores data from various blockchain applications, facilitating information retrieval.

Originally launched on the Ethereum blockchain, The Graph aims to help developers use relevant data to make their decentralised applications (dapps) more efficient.

It analyses and gathers blockchain data before storing it in various indices called subgraphs. This allows any application to send a query to its protocol and receive an immediate response.

These queries are posed by decentralised applications (dapps) through GraphQL, a widely used language originally created by Facebook to gather data for users’ news feeds.

Users of The Graph who provide services to the network — known as indexers and delegators — help process the data and pass it on to end users and applications.

The Graph’s native cryptocurrency, GRT, is used to secure the integrity of the data within its network. All users, including indexers, curators and delegators, must stake GRT to perform their roles and earn network fees in return.

Popular Ethereum dapps like Aave, Curve and Uniswap use The Graph. Users wishing to stay informed about The Graph’s latest developments can bookmark its official blog.

How does The Graph work?

The first step in The Graph’s data aggregation process involves Graph Nodes, which continuously scan network blocks and smart contracts for information.

When an application adds data to the blockchain via smart contracts, the Graph Node adds this data to the relevant subgraphs.

Once the Graph Node has extracted the information, three types of user contribute to organising the data within the protocol.

These include:

• Curators: subgraph developers who assess which subgraphs are of high quality and need to be indexed by The Graph. Curators attach GRT to the subgraphs they believe in.
• Indexers: Node operators who provide indexing and querying services for signalled subgraphs and who must stake GRT to provide these services.
• Delegators delegate GRT to indexers to contribute to running the network without installing a node.
• All users earn a portion of the network fees for their work, depending on their role.

This data can then be easily accessed by applications seeking information to help them run their software via queries.

What is the GRT token?

GRT is a cryptocurrency that derives its value from its ability to ensure the successful execution of smart contracts that depend on the Graph protocol.

Notably, GRT is the only cryptocurrency used for key network operations. For instance, consumers submitting queries to indexers must pay a query fee denominated in GRT.

Curators earn query fees for the subgraphs they signal, while indexers earn a portion of the query fees and protocol rewards. Delegators also earn a share of the indexer fees by lending their GRT tokens.

Anyone who owns and stakes GRT tokens can participate in decisions affecting the software by voting on proposals for the rules that govern the platform’s use. Delegators can assign their voting rights to someone else to vote on their behalf.

Investors should note that while The Graph introduced 10 billion GRT in 2020, the total supply is set to increase by around 3% on average each year, with an estimated 1% of tokens to be removed from circulation annually.

How to buy The Graph (GRT)?

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