Why are data indexing services in the middleware layer of interest?

The middleware for blockchain broadly consists of: data management, application services, authentication and API management modules, which are software that provide a range of development-supported services and functions at the application layer, with the help of which developers are able to develop applications more efficiently.

Part.1 Insight

Focus on the data indexing module in blockchain middleware

What is middleware?

Blockchain middleware broadly consists of: data management, application services, authentication and API management modules, which are software that provide a range of development-supported services and functions at the application layer, with the help of which developers can develop applications more efficiently. Data indexing belongs to the data management category of middleware.

What is blockchain data indexing?

Although data from the blockchain is publicly accessible, additional standardized processing (data extraction, parsing, and standardization) is required to get useful messages from the raw on-chain data. In other words, an on-chain data indexing service provider can sort out the clutter of raw on-chain data into user-friendly and readable standardized data (as shown below).

Why are data indexing services in the middleware layer of interest?
Why are data indexing services in the middleware layer of interest?
Why are data indexing services in the middleware layer of interest?

From raw blockchain data to user-readable visual graphs

Why should we focus on the data indexing track?

The middleware for blockchain broadly consists of: data management, application services, authentication and API management modules, which are software that provide a range of development-supported services and functions at the application layer, with the help of which developers can develop applications more efficiently.

The three modules, data indexing, data storage, and prophecy machine, are part of the data management middleware. Data storage and prophecy machines have long gained a lot of market attention, with a large number of projects and technology iterations appearing in these two directions, while the market for data indexing services has previously been less hot. But looking back at the rapid growth in business volume (number of data API calls) of data indexing projects represented by The Graph during the DeFi bull market, we realize that this segment will have more quality projects running in the future.

What is the need behind blockchain data indexing & API?

Although data from the blockchain is publicly accessible, additional standardized processing (data extraction, parsing, and standardization) is required to get useful information from the raw data on the chain. In other words, an on-chain data indexing service provider can sort out the jumbled on-chain raw data into user-friendly and readable standardized data.

The current core user groups and needs of such services include

Investors: Investors need various trading data and market data to help make investment decisions.

Developers: Developers need to track DApp data and ranking to know users’ preferences, keep an eye on market trends and competitor data changes, adjust product development strategies in time, analyze DApp data indicators in multiple dimensions, and optimize product experience in a targeted manner.

The future market scale of blockchain data service industry is promising

Most of the blockchain data indexing &API; service market currently adopts SaaS mode, and the current market scale is not large, so it is difficult to unilaterally estimate the market scale of the data indexing service segment.

However, according to The Block’s survey statistics of the whole blockchain data service industry in 2020 (including: data indexing and API services, customized products, tools), the current market size is about 50 million USD. At present, the global traditional financial information market size accounts for about three ten thousandths of the global managed asset size, if we estimate according to this size, we think the whole on-chain data service industry will have 10-20 times growth space in the next 5 years, and the blockchain data service industry will be able to reach a market size of $1 billion in 3-5 years (Tim Rice ( Tim Rice (CEO of Coinmetrics) and Mike Alfred (CEO of Digital Asset Data) have also expressed similar views), and the corresponding segments – data indexing and API services – will also have considerable imagination.

On-chain data indexing technology principle

On-chain data indexing is technically similar to traditional APIs for cloud-based applications – a front-end that runs on the user’s device and effectively provides the data needed. The difference between the two, however, is that traditional APIs are operated by an economic entity and users have no say in the matter, while on-chain data indexing projects consist of decentralized indexing nodes that can compete with each other in terms of content and price, allowing users to enjoy better services at a fairer price.

Although The Graph is a tokenized economic model and Dune is a SaaS model (user subscription fee to enjoy the service), the working principle of the two projects is similar (as shown below): they both define and classify the events listened to by the Ether Smart contract events are defined and categorized, and then stored in a database in a standardized format so that users can crawl the database and use it.

Thinking about future opportunities

From on-chain to off-chain vs off-chain to on-chain?

Looking at the dimension of blockchain middleware, one interesting thing we can find is that there are similarities and differences in the business models of on-chain data indexing service providers and on-chain prophecy machines. Let’s compare the similarities and differences between The Graph and Chainlink, the two leading projects in the track.

The difference is that Chainlink enables on-chain scenarios by calling off-chain data, while The Graph enables off-chain scenarios by extracting on-chain data into readable patterns.

The similarity lies in the fact that both Chainlink Data Indexing Service Provider and Chainlink Prophecy Machine are both data service middleware. Both projects have formed their own head advantages in their respective tracks, established communities, held hackathon incubation projects, spawned more practical application scenarios, and gradually consolidated their position as middleware infrastructure.

Future development forecast

SaaS mode: After market research and survey, we believe that the development time of SaaS business model of blockchain data indexing and API service will experience a longer cycle than that of native token-empowered service providers, mainly because this model needs to create a large amount of revenue to be supported by the development or business analysis needs of a large number of medium and large enterprises in the market.

Token mode: Token-enabled data indexing service has already been proven by successful cases, the monthly call count of the head project in this track can reach 20 billion API calls / month at the peak of the DeFi bull market, and the business volume has increased more than 20 times compared to a year ago. We expect that with the prosperous growth of multi-chain ecosystem, data indexing service projects on other chains will emerge (similar projects have already appeared on public chains such as Polkadot); at the same time, adding richer visual data functions will become the direction for entrepreneurs to develop in future product iterations.

Part.2 Investment and Financing Events

DeFi Asset Management Platform Set Labs Completes $14M Series A Funding Round Led by 1kx and Hashed

*DeFi Asset Management

DeFi asset management platform Set Labs closed a $14 million Series A round led by 1kx and Hashed, with funding from Mechanism Capital, Defiance, Spartan Group, ParaFi, Coinbase Ventures, Craft Set Labs plans to continue decentralizing protocols and promoting community ownership, building, iterating and innovating the suite of financial products offered by Index Coop, partnering with more asset management companies to provide end-to-end solutions, enabling more use cases and alternative chains through Layer 2 and Set Labs is an automated asset management protocol that provides ETPs such as the DeFi Pulse Index, Metaverse Index and ETH 2x Flexible Leverage Index through Index Coop, and through Set Protocol for those wishing to launch asset management infrastructure for those wishing to start an ETP or delegated management solution through Set Protocol.

Decentralized Derivatives Protocol Shield Protocol Raises $2 Million Private Placement Round Led by A & T; Capital and HashKey Capital


Shield Protocol, a decentralized derivatives protocol, has raised $2 million in a private round led by A&T; Capital and HashKey Capital, with participation from SevenX Ventures, Incuba Alpha, Youbi Capital, OKEx Blockdream Ventures, Bonfire Union, Moonwhale Ventures, Zonff Partners, Shima Capital, and individual investor Sharlyn Wu. Shield is one of the DeFi projects for on-chain trading derivatives and will soon release a perpetual option protocol, a risk-free perpetual contract protocol.

Blockchain Infrastructure QuickNode Raises $5.3 Million Led by Reddit Co-Founder Alexis Ohanian’s Fund


Blockchain infrastructure QuickNode received $5.3 million in funding led by Reddit co-founder Alexis Ohanian’s Seven Seven Six, with other investors including SoftBank’s Opportunity Fund, Arrington XRP The funding will be used to expand the product, hire talent and more. QuickNode is a Miami-based startup building a Web 3 cloud platform that makes it easier for developers to develop blockchain applications.

Balancer Labs raises $24.25M through token sale

*Non-Custodial Portfolio Management

Balancer Labs raised $24.25 million through the sale of BAL tokens from Alameda Capital, Pantera Capital, Blockchain Capital, Fintech Collective, LongHash Ventures, Fenbushi Capital, and Continue Capital, with individual investors including Kain Warwick, founder of Synthetix, and others.

Blockchain Application Building Solution Reach Raises $12M at $48M Valuation

Blockchain Application Solutions

Reach, a blockchain application building solution, raised $12 million at a $48 million valuation from undisclosed investors. Reach’s DApp programming language makes it easy for developers to build secure DApps that can be easily deployed to a variety of different blockchain networks.

Arweave-Based Decentralized Financial Services everFinance Closes Million Dollar Seed Funding Round

decentralized financial services__*

everFinance, a decentralized financial service based on Arweave, announced the closing of a multi-million dollar seed round of funding. The funding was co-led by HashKey and SevenX Ventures, with follow-on investors including Arweave officials, Mask Network, DODO, OKEx Blockdream Ventures, Digital Renaissance Foundation (Yin Cao), D1 Ventures and others. (Cao Yin), D1 Ventures, and others. Individual investors include Hongbo Tang, CEO of DeBank, and Mingda Lei, founder of DODO. everFinance is a decentralized financial service based on Arweave, and its trusted cross-chain payment settlement protocol everPay was officially launched on May 21. users can use everPay to transfer Ether and ERC20 tokens for free. According to the team, everPay will support cross-chain from Arweave to Ether.

Indonesian Crypto Exchange Pintu Closes $6M Funding Round with Pantera Capital, Coinbase, and More

*Crypto Exchange

Indonesian cryptocurrency exchange Pintu has closed a $6 million Series A round of funding led by Pantera Capital, with investments from Blockchain Ventures, Coinbase, PT Gesit Perkasa, Intudo, and others, according to TechinAsia. In addition to providing cryptocurrency trading services, Pintu also introduces its users to cryptocurrency investments through its Pintu Academy platform. The company is registered with the Indonesian Ministry of Communications and Informatics and the Commodity Futures Trading Regulatory Agency.

Qilin Protocol Closes $800,000 First Round Led by Multicoin, Plans to Go Live with V1 in a Week

*Volatility Protocol

Qilin Protocol, a decentralized volatility protocol, has received an $800,000 first round of funding led by Multicoin Capital. In addition, Qilin Protocol will launch version V1 on the main website within 1 week. Other investors in the round include Continue Capital, Fundamental Labs, MATH Foundation and Metaverse Capital. Qilin Protocol provides the ability to build a reverse contract market for long-tail crypto assets through an innovative automated risk regulation mechanism and dynamic liquidity provisioning. Qilin Protocol provides long-tail crypto assets with the ability to build reverse contract markets through innovative automated risk regulation and dynamic liquidity provisioning mechanisms.

Chia Network Completes $61M Funding Round with a16z and others

*Blockchain and Smart Trading Platform

Chia Network (XCH), a cryptocurrency project founded by BitTorrent founder Bram Cohen, closed a $61 million round of funding from Richmond Global Ventures, Andreessen Horowitz (a16z), Breyer Capital, Slow Ventures, and the U.S. Department of Commerce. Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab+Currency and DHVC, among others. Gene Hoffman, president and COO of Chia Network, said the company could potentially go public through a SPAC (special purpose acquisition company), but is looking to do an IPO this year through a traditional approach. Chia Network will use a mechanism that combines “spatial proof” and “temporal proof” in an attempt to provide a more environmentally friendly consensus solution than Bitcoin’s proof-of-work.

Part.3 The Pulse of the Industry

Uniswap will soon restart generic liquidity mining instead of the UNI liquidity mining program


Speaking at the Coindesk Consensus Conference, Hayden Adams, founder of Uniswap, said that Uniswap will soon be relaunching general-purpose liquidity mining, saying, “A V3 version of the Uniswap general-purpose liquidity mining smart contract will be released soon. This is not a contract specifically for UNI liquidity mining, but a general-purpose mining contract that allows any project to create liquidity incentives in any token on any pair of transactions. In addition, the contract is funded by UNI Grants and developed by the community, and Hayden Adams explained that the generic liquidity mining would be open to any project, not the UNI Liquidity Mining Program.

Polygon Releases SDK Software Development Kit to Build Ether Multi-Chain Systems

*Tier 2 Scaling

Polygon Network (formerly Matic) releases SDK (Software Development Kit) to build an Ethernet multi-chain system Polygon SDK is a modular and flexible framework for Ethernet scaling and infrastructure development, with an architecture based on Ethernet compatibility, modularity and scalability Polygon SDK provides off-the-shelf pluggable consensus algorithms that provide customized solutions for parameters such as consensus and synchronization. In addition to consensus and synchronization, the Polygon SDK includes other modules such as TxPool, JSON RPC and gRPC. the first version of the Polygon SDK supports developers in creating standalone chains with full interoperability with the ethereum network. Later development teams will be able to create second-layer solutions that connect directly to the main Ethernet network. In addition, the existing Polygon solutions Polygon PoS and Polygon Plasma chains will continue to exist and operate as part of this multi-chain system.

Facebook’s Digital Currency Project Diem USD Stable Coin to Exit Market After Feds Issue CBDC

*Facebook Digital Currency Project

Christian Catalini, chief economist for Facebook’s digital currency project Diem, said its recently announced Diem USD stablecoin is only a transitional project and that when the Federal Reserve issues a central bank digital currency (CBDC) or digital dollar, the Diem Christian Catalini said the public sector has a greater comparative advantage when it comes to development and stability, currencies, stores of value and macroprudential policies.

Aggregation Protocols OpenOcean Aggregation Solana DEX Eco

  • Aggregation Protocol

OpenOcean, the aggregation protocol, announced the completion of its aggregation of Solana, providing users with a one-stop trading portal for Solana eco-tokens. OpenOcean says, “Solana is based on consensus mechanism and technological innovation, with high transaction speed and negligible fees, helping users to greatly reduce transaction costs, and through OpenOcean Solana is based on consensus mechanism and technological innovation, with high transaction speed and negligible fees. Up to now, OpenOcean has already aggregated mainstream DEX on ETH, BSC, TRON, ONT, Ether Layer 2, Solana, etc., and has also aggregated Coinan exchange.

Sotheby’s auctioned off the environmentally themed NFT “Two Degrees”, which will destroy itself after the global temperature rises by 2°C


Auction house Sotheby’s is auctioning off the environmentally themed NFT “Two Degrees,” which will self-destruct when the average global temperature rises 2°C (35.6°F) above pre-industrial levels. Two Degrees” is a 20-second video cast as a self-destructing code-enabled NFT that monitors NASA’s global temperature data via a prophecy machine on ethereum.

Coin NFT Marketplace to go live on June 24


Cryptocurrency will launch its NFT Marketplace on June 24, with the first creators to post their work on the marketplace including two-time BRIT winner Lewis Capaldi, visual artist Trevor Jones, esports team eStarPro, professional soccer player Michael Owen and Alphonso Davies, among others.

Uniswap V3 may be deployed to Arbitrum, an ethereum scaling network


The vote to deploy Uniswap V3 to Arbitrum, an ethereum scaling network, which was initiated by Compound founder Robert Leshner and has received overwhelming support, will end at 0:00 on May 29. Uniswap V3 deployment to a Layer 2 solution will help speed up transactions and reduce transaction costs.

Part.4 IOSG Post-Pitch Project Progress

MCDEX code is now open source


Decentralized perpetual contract exchange MCDEX code is now open source, based on AMM perpetual trading protocol Mai Protocol V3 code, js API, subgraphs, Keeper, Order Broker, etc. can be viewed on github.

Polkadot v0.9.3 is now live, official advice to upgrade nodes as soon as possible


Polkadot v0.9.3 is now live, and it is officially recommended to upgrade the node as soon as possible. This update introduces code that replaces wasm on the Polkadot chain and the “code_substitute” command. In addition, if a verification node was previously downgraded to v0.8.30 and used the “–execution=native” command, the “–execution=native” will be removed when upgrading to v0.9.3.

volmex.finance will be available on the main ethereum network in June for V1

*Ethiopia Volatility Index Trading Platform

volmex.finance has released v1, which supports the minting of volatility index tokens in collateralized stablecoins (currently DAI and USDC) and uses a global settlement mechanism. Users can mint volatility index tokens (e.g. ETHV) or inverse volatility index tokens (e.g. iETHV) with collateralized stablecoins to make targeted bets on the ups and downs of the underlying tokens, or provide liquidity to Uniswap’s liquidity pool to generate revenue. At the same time, users can also use volatility index tokens to redeem pledged stablecoins, currently at 0.1% for minting and 0.3% for pledging. volmex.finance said that this version of the smart contract code has been audited by CertiK and Coinspect and will be released on Ether in June, after which it will support scaling solutions Polygon, Optimism, etc. The smart contract is currently being tested on the Ethernet test network. After the product release, volmex.finance plans to support more types of collateral as well as volatility index tokens.

0x Proposal for protocol optimization and Uniswap V3 integration ZEIP-88 is open for voting

  • Decentralized trading protocols

The 0x protocol says that its proposal ZEIP-88 to “optimize integration with Uniswap V3 to reduce the associated transaction costs” has been opened for voting. The proposal proposes two changes, one to add the UniswapV3Feature contract to the ExchangeProxy and the other to add support for Uniswap V3 on MultiplexFeature.

Gelato Network Brings Automated Infrastructure to Smart Contracts Platform Fantom
*Ethiopia Smart Contracts Tool
Gelato Network, an ethereum smart contract automation tool, announced that it is bringing its automation infrastructure to Fantom, a DAG-based smart contract platform, providing a reliable track record for smart contract automation that developers can trust and rely on. fantom is a high-performance, scalable, and secure smart contract platform that leverages an aBFT co-location called Lachesis. Lachesis is a high-performance, scalable and secure smart contract platform that leverages an aBFT consensus mechanism called Lachesis. As its consensus layer, Lachesis powers Fantom Opera, an EVM-compatible mainnet deployment that allows any Ether-based dapp to be seamlessly ported to Fantom.
Manta Network has partnered with Crust and **Phala
*Privacy DeFi Protocol
Privacy DeFi Protocol Manta Network announces a partnership with Crust Network, a Boca Eco decentralized storage project, Manta will build the privacy layer for Crust’s decentralized storage network and will use its Zero Proof of Knowledge technology to integrate with Crust’s decentralized storage network. Crust users will also benefit from Manta’s ZKP solution, which will provide privacy protection for all transactions generated on the Crust Network. Privacy DeFi Protocol Manta Network announces a partnership with Phala, the Polka Privacy Infrastructure, to build a comprehensive Polka privacy ecosystem. DeFi functionality, and Phala will provide exchange, debit, and other functionality in a private environment.

1inch Network partners with cross-border payments network Mercuryo to support fiat purchases of DeFi assets
*On-Chain Transaction Aggregator
1inch Network, an on-chain transaction aggregator, has partnered with Mercuryo, a cross-border payment network, to support the purchase of DeFi assets on 1inch in fiat currency through Mercuryo, currently only available on ios. Mercuryo is a cross-border payment network that supports users in over 180 countries using their bank cards via Mercuryo is a cross-border payment network that allows users to purchase ETH, DAI, USDT in more than 180 countries using Apple Pay and Google Pay with bank cards and one-click payments.
NEAR Protocol has partnered with Ceramic, whose native tokens have been deployed on the Ethernet network as ERC-20
*Open Network Platform
NEAR Protocol has partnered with Ceramic, a decentralized network storage protocol, to develop cross-chain identity and dynamic data storage, as well as Ceramic support for NEAR wallets. ceramic offers advanced database-like features such as mutability, version control, access control, and programmable logic. near Protocol also announced that NEAR tokens have been deployed on the Ethernet network as ERC-20 tokens. Currently, the NEAR/ETH pair has over $1 million in trading liquidity on exchanges SushiSwap and DODO. Rainbow Bridge facilitates the movement of NEAR tokens between Ether and NEAR Protocol. In addition, NEAR Protocol entered into an initial partnership with DeFi lending platform Ruler Protocol to allow depositors of crypto collateral to access stablecoin loans. Beginning with the June lending cycle, NEAR will be added to Ruler as a backed collateral asset, and lenders holding LP tokens on the platform will receive dual rewards in RULER and NEAR.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-are-data-indexing-services-in-the-middleware-layer-of-interest/
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