Unlock the Power of The Graph, A Decentralized Data Indexing Tool for Web3

Unlock the Power of The Graph, A Decentralized Data Indexing Tool for Web3


Introduction

The advent of web3 is not an attempt to create another internet; instead, it is one dedicated to enhancing the internet's efficiency through innovative development. At the forefront of this movement is The Graph, a web3 infrastructure designed to empower decentralized application developers with data management and data retrieval. Together, these features are set to make dApp development easier as developers get to rely on readily structured and compatible data for their applications.

What is The Graph?

From trends to users' needs, market events, and blockchain innovations, developers can leverage limitless yet structured data when navigating dApp development and making decisions. Popularly dubbed "the Blockchain Google," The Graph is a data management system offering users valuable insight into how modern blockchain applications should be constructed and operated. The protocol is hosted on Ethereum as a data indexing and querying tool using a universal API.

As a web3 blockchain infrastructure, The Graph allows developers to access and integrate blockchain data into their applications, therefore enhancing the process of building more robust and user-centric web3 applications.

The evolution of blockchain has witnessed remarkable adoption; however, continual development requires developers to use available data to create innovative applications and tools that tend to users' needs. To do this, understanding the market is essential. This is where using The Graph comes in.

With its decentralized structure, The Graph uses a distributed ledger system to ensure data integrity and eliminate the risk of censorship. As data is stored on a decentralized platform managed by indexers and curators, data management and storage are no longer controlled by a single centralized entity.

How The Graph Works

The Graph mainnet is a platform operated by indexers, curators, and users through tools like subgraphs, indexes, query language, and the Graph nodes.

Let's look at how these tools work together to give developers access to global blockchain data according to their demand.

Subgraphs

When The Graph indexes data from different blockchains, it groups the data into APIs called subgraphs. Aside from the pre-built and customizable subgraphs, users can also create or build subgraphs on the platform.

Subgraphs contain specific data sets or schemas that describe how data should be indexed from a blockchain. Like a blueprint, it outlines data extraction and transformation guides for developers. Once created, a subgraph uses the GraphQL schema to provide developers with specific information on the appropriate smart contract to use or the data to extract.

Indexing and Querying

To retrieve data, developers rely on indexes and queries. To get the required data, developers first deploy a subgraph on The Graph network. Once deployed, a network of nodes indexes the blockchain and gathers needed data according to the subgraph's schema. At this stage, the system mainly accesses blockchain events and stores relevant information in a structured format.

Once the data is indexed, developers will  use the GraphQL language to extract the exact data they need without over-fetching or under-fetching data.

The Graph Nodes

The Graph nodes run the software that indexes blockchain data and serves it through the GraphQL API. Nodes continuously protect data integrity and availability by filtering and aggregating data.

Graph Node will access the network through EVM-compatible JSON-RPC API provided by node service providers like Chainnodes to index a subgraph. While the subgraph determines the RPC functionality required for indexing, Chainnodes is a leading blockchain RPC service provider that offers dedicated the Graph Nodes and an extensive infrastructure for building scalable dApps when leveraging The Graph.

$GRT – The Graph Token

With over 9 billion circulating supply at the time of writing, the Graph token, $GRT, has remained an essential part of the Graph ecosystem since its launch in December 2020.

$GRT is used to facilitate transactions and as a reward token. Indexers and curators who are required to lock a specific amount of $GRT also receive rewards for running nodes and managing the platform in $GRT. The coin is available on popular exchanges like Binance, Coinbase and more.

Why do you need The Graph as a dApp developer?

The launch of The Graph mainnet was not a hyped success; what is true is that the project did offer developers and the entire DeFi community unique benefits, which include:

  • Decentralization and Security: The Graph is not a traditional database controlled by a centralized entity; it is an open-source database built on a decentralized network of nodes to enhance data security and integrity.
  • Efficient Data Management: The Graph uses a streamlined interface to simplify the complexity of blockchain data management. The automated indexing and querying process ensures developers can access data in a standardized format.
  • Scalability: The protocol relies on a network of nodes to ensure that no single point of failure can compromise the data storage or retrieval process. Also, The Graph nodes are designed to handle large volumes of data, providing developers with a scalable data management tool.
  • Fast dApp development: The Graph features pre-built and customizable subgraphs designed to streamline the process of dApp deployment. The data retrieval system allows developers to use prototypes for faster iteration.
  • Interoperability: Though the protocol is hosted on Ethereum, The Graph is compatible with multiple blockchains, making it easier for developers to build cross-chain applications.

Conclusion

With over 2 billion queries created on the Graph so far, it is apparent that the platform enjoys wide adoption among developers and DeFi participants. Developers can easily build innovative and user-oriented applications by leveraging subgraphs, GraphQL and its decentralized nodes. To get you started, Chainnodes offers a free starter package for users who want to explore the benefits of The Graph.