In the growing web3 environment, data querying has become a critical aspect of blockchain technology. This article aims to demystify the Graph, a decentralized protocol for querying networks like Ethereum and IPFS often referred to as the Google of crypto.
What is The Graph?
The Graph is a decentralized protocol for indexing and querying blockchain data. It organizes blockchain data using subgraphs, which are open APIs created by the community. These subgraphs allow for easy access to indexed data, making querying and indexing blockchain data a breeze.
Creating a Subgraph
Creating a subgraph involves generating AssemblyScript types for the ABI and the subgraph schema. This can be accomplished using the command yarn graph codegen.
The Graph's Role in DeFi
The Graph is widely used in Decentralized Finance (DeFi) applications. It allows developers to retrieve blockchain data in real time, including token prices, lending rates, and user balances. This eliminates the need for DeFi dApps to set up their own infrastructure for querying and indexing smart contract data.
Community Roles in The Graph
The Graph's operation relies on the engagement of a community composed of four main roles: consumers, indexers, curators, and delegators. The Graph Council, a Decentralized Autonomous Organization (DAO) supported by The Graph Foundation, manages protocol upgrades and the community treasury. The council members participate in a governance process where they vote on Graph Improvement Proposals (GIPs).
Practical Applications of The Graph
The Graph has applications spanning various sectors of the Web3 ecosystem:
Decentralized Finance (DeFi): The Graph is extensively used in DeFi applications. It enables developers to access real-time blockchain data, making it easier for DeFi dApps to access market and blockchain data without setting up their own infrastructure for querying and indexing smart contract data.
Decentralized Applications (dApps): Developers can use subgraphs to index and query data from blockchains. This allows applications to efficiently present data in a UI, and it allows other developers to use your subgraph too. Developers can deploy a subgraph to the network using the Subgraph Studio or query existing subgraphs that are in the Graph Explorer.
Community Involvement: The Graph allows for community involvement in various ways. If you are non-technical, you can get involved as a Curator or Delegator to earn GRT on The Graph Network and help Indexers identify which subgraphs they should index.
Blockchain Data Querying: The Graph project supports the idea of subgraphs, which allow developers to tailor the data to be indexed based on their needs. These subgraphs are published through nodes in the network, and they can be queried from dApps.
Web3 Social Networks: In Web3 social networks, decentralized social graphs and digital identity play significant roles, and The Graph can be utilized in this context.
In essence, The Graph serves as a critical component in the Web3 ecosystem, providing a decentralized, efficient way to index and query blockchain data, thereby supporting the development and operation of various applications in the Web3 space.
Roles of Consumers, Indexers, Curators, and Delegators in The Graph Community
The Graph community is composed of four main roles: consumers, indexers, curators, and delegators. Each role plays a crucial part in maintaining the functionality and security of The Graph protocol.
Consumers: Consumers are the end-users of The Graph that query subgraphs and pay query fees to the indexers, curators, and delegators. Consumers are typically developers or projects that cover query fees for their applications as they would for cloud service costs.
Indexers: Indexers are node operators that stake Graph Tokens (GRT) to provide indexing and query processing services. Indexers earn query fees and indexer rewards for their services.
Curators: Curators are subgraph developers, data consumers, or community members who signal to indexers which APIs should be indexed by The Graph Network. Curators deposit GRT into a bonding curve to signal on a specific subgraph and earn a portion of query fees for the subgraphs they signal on.
Delegators: Delegators are individuals who contribute to securing the network but do not want to run a Graph Node themselves. They delegate their GRT to existing indexers and earn a portion of query fees and indexing rewards in return.
In conclusion, The Graph is a key player in the web3 ecosystem, providing an efficient, decentralized way to index and query blockchain data. It offers a flexible, community-driven approach to organizing this data, making it a vital tool for web3 developers and users alike.