The Graph – a core component of Web3

The Graph is a Decentralized Indexing Protocol for organizing and summarizing blockchain data.

The Graph - a core component of Web3

“The Graph and Polygon share a common mission to build a reliable public infrastructure for developers, verifiers and end users, and this partnership will further that mission and provide incredible value to the crypto and Web3 communities.”

The Graph is the Decentralized Indexing Protocol (DIP) for organizing and summarizing blockchain data. Applications that use GraphQL to query open APIs are called Subgraphs, which are used to retrieve data that has already been indexed on the network. Developers can use Graph to create applications that run entirely on the public infrastructure and without servers.

The Graph Network contains Indexers, Curators, Delegators, and Consumers that provide services to the Web and data to Web3 applications.

The Graph Network decentralizes the query and API layers of Web3, eliminating the trade-off dApp developers currently face: whether to develop a high-performance application or a fully decentralized one.

The Graph - a core component of Web3

Currently, developers can run a Graph node on their own infrastructure, or develop one on an officially established hosted service. Among other things, developers build and deploy subgraphs that extract and index data from Web3 data sources. Subgraphs have already been created by many leading Ether projects, including Uniswap, ENS, DAOstack, Synthetix and Moloch. In The Graph network, any indexer is able to participate in the network by pledging Graph tokens (GRT) and earning fees and inflationary rewards for providing query services.

Users pay for the use of a growing number of indexers based on the number of uses, proving that the laws of supply and demand also apply to the services provided by the protocol.
The Graph’s mission is to empower Internet applications powered entirely by the public infrastructure.

The Graph - a core component of Web3

Full-stack decentralization gives applications the ability to respond to business failures and rent-seeking, while bringing unprecedented interoperability. Users and developers know that the software they invest time and money in building will not just disappear into thin air.

To achieve the vision of fully decentralized applications (dApps), it is critical to make a paradigm shift from a business model of paying for the ongoing storage, compute, and other services required for applications to function properly to one where users pay directly for a network of decentralized service providers.

Most “decentralized” applications currently use this model only at the bottom of the stack (i.e., the blockchain), where users pay for any changes to the application state. The rest of the stack is still run by centralized operations and is subject to arbitrary failures and rent-seeking issues.

There is a huge amount of raw data on Ether. This data needs to be stored in a format that can be easily and efficiently queried – this is critical for fast loading web applications and a good user experience. The Graph makes querying blockchain data reliable, secure and fast when a subgraph sorts and indexes specific data for the applications that use them. It’s the indexing standard for the web3 stack!

The Graph is the middleware for the web3 stack. It allows applications to efficiently query blockchain data without relying on centralized service providers and helps make fully decentralized applications a reality.

The Graph - a core component of Web3

And what is middleware? Middleware, the English name is Middleware, is a kind of basic software applied to distributed systems. From the vertical level, middleware is located between various applications/services and operating system/database system and other system software, mainly solving the problems of data transmission, data access, application scheduling, system construction and system integration, process management, etc. in distributed environment, and is a platform to support application development, operation and integration in distributed environment, which can realize the interconnection between systems and help users to efficiently develop Application software.
The role of middleware is to break the Internet blockade and become a bridge from Web2 to Web3, which is a prerequisite to meet large-scale applications. the Graph undertakes the middleware business of solving the high monopoly from the Internet world to the blockchain world, and The Graph is also known as a reverse prophecy machine.

With the popularity of open public networks such as Ether and DeFi, The Graph is building the foundation for all crypto applications that leverage open data.

The Graph - a core component of Web3

Some of the more well-known DeFi projects, such as Aave, Synthetix, DODO and Uniswap, use Graph to enhance their interfaces.

GRT is the protocol’s native token. It is a working token that is used to allocate resources in the network, including providing indexing, management and authorization services. All the above-mentioned participants can earn from the network in proportion to the amount of work done and the GRT pledged.
Anyone holding GRT tokens can contribute to the security of the network without having to run a graph node. This is the easiest way to participate in The Graph and make GRT useful. The delegate also does not need the higher technical knowledge that comes with a “guide” or “index”. The delegate delegates their GRT to an existing indexer and receives a portion of that indexer’s rewards and fees.
Graph is the key middleware for the broader Ether ecosystem. It allows DeFi applications to index and query data with common standards, so that better tools and applications can be built.

The Graph - a core component of Web3

At present, almost all mainstream DeFi projects are covered on Ether, and many applications have deployed API interfaces based on The Graph, which may become a traffic portal for the whole DeFi world in the future. Therefore, the investment value of GRT is still relatively high, but it is also necessary to look at your ideal price.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-graph-a-core-component-of-web3/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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