What is The Graph?
This blog post will cover:
- What is The Graph?
- Where did The Graph come from?
- What are the advantages of The Graph?
- What are the disadvantages of The Graph?
- How to buy The Graph on SimpleSwap?
What is The Graph?
The Graph is a decentralized indexing system designed to query data from the blockchains. The platform has its own cryptocurrency - the Graph (GRT). Data indexing is a process of data structure that improves the speed of blockchain operations. The indexed data ends up grouped in so-called subgraphs - open APIs, which anyone can create, implement and adopt. That makes the database clear and easily accessible.
The indexing function of the Graph is spread to such networks as Ethereum, IPFS, and Filecoin with more of them coming soon.
GRT is the main utility token of the Graph which governs the economy of the network. This ERC-20 token transfers value globally and distributes resources. GRT’s distinctive feature is that it is locked-up by Indexers, Curators, and Delegators who guarantee indexing and curating services to the Graph. Indexers collect indexing rewards and query fees; Curators earn a part of subgraphs’ query fees; Delegators interfere with the Indexers’ rewards and take a portion of their income.
Where did The Graph come from?
The main developer of the Graph is Yaniv Tal. He launched the Graph at the end of 2020 after a 3-years-long testing period. The Graph was noticed by DeFi platforms right away and attained multiple integrations.
During that period Yaniv and his co-founders have been working on creating a new-level indexing protocol that would make it easier to access blockchain data. The Graph team faced a challenge then because it was the first one in the field of indexing blockchains. They had to develop the unique software from scratch. Then GraphQL emerged - the method of collecting, transforming, and manipulating data from various sources into API.
The main purpose of the Graph is to create an ecosystem that would let access to Web3 without any additional servers.
What are the advantages of The Graph?
- Data indexing
The Graph was designed to index data from various sources. As for now it indexes data from Ethereum, IPFS, PoA etc. Just like that the Graph erases the technical outlays related to data structuring.
The Graph gives an opportunity to all users to limitlessly create open-source Subgraphs which enable simple and protected access to storing data. Subgraphs eliminate any difficulties connected with indexing data from the blockchains making the usage of the Graph very comfortable and convenient.
The GRT holders can stake their tokens and earn passive income. The reward is calculated in 3% annual issuance. Stakers transmit part of their GRT to the indexers. They in turn run nodes that generate the reward which is distributed back to the Stakers. The reward is, of course, paid in GRT.
What are the disadvantages of The Graph?
As many other cryptocurrencies, the Graph is highly volatile which may be a risk factor for short term traders. On the other hand, the volatility is what makes investing in crypto assets alluring to more and more people and companies.
- Takes a lot of time
In some cases users have to wait for several days before they can start working with the data. It may happen because the indexing process takes time and can be fraught with certain problems due to the amount of data.
How to buy The Graph on SimpleSwap?
Today feels like a perfect day to get some GRT tokens, doesn’t it? SimpleSwap is right here for your crypto exchanges 24/7. Read how to become a GRT owner below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select GRT in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient's Address. The Graph will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.