What Is The Graph (GRT) How It Works & Where To Buy It?

The Graph (GRT) is a leading data provider for blockchains. There is a need for seamless retrieval and preparation of data from multiple protocols – The Graph positions itself as the best data provider for the crypto space.

The Graph (GRT) has become one of the most popular crypto projects in the blockchain space and is currently the 56th largest cryptocurrency in the world by market capitalization.

How The Graph (GRT) Works

The Graph is a decentralized oracle solution that processes blockchain data for further use. The graph network utilizes subgraphs (similar to APIs) to streamline the process of data transfer, retrieval, and preparation.

The process can be divided into four main groups:

Indexers

Individuals are required to run their own node if they want to offer data. Operators stake GRT tokens for this process. To minimize ”bad actors” there is a system in place that penalizes data providers for providing incorrect data – they lose a portion of their deposit.

Curators

The role of curators is to determine the credibility of a source, and whether the data being provided is both trustworthy and valuable. This process involves curators signaling indexers regarding which networks need to index subgraphs. The depositing of GRT tokens into the subgraph is typically how the process takes place. A share of the fees is then shared.

Delegators

The role of delegators is to secure the network. This is done by depositing shares in indexers – delegators aren’t required to run their own node. Instead, they can participate in an existing node and still earn from the node’s fees.

Consumers

The final group involved in the process is consumers. They are the ones purchasing qualitative data. Most notably, decentralized applications and trading venues. Indexers are paid by them and the integration of provided data is facilitated into the chosen applications using API.

What Is The Graph (GRT) Used For?

The entire revenue model of The Graph ensures that indexing data is a transparent and accurate process. Consumers querying data are required to use GRT tokens to purchase the data.

Blockchain data is incredibly valuable and highly sought after – The Graph token is at the core of this process.

Node operators are tasked with running a graph node that plays an integral part in the entire process – all groups involved need to gather data in the most efficient and transparent way, ensuring the consumer receives the data they’re seeking.

The Graph price is positively affected by the revenue model because indexers, curators, and delegators are rewarded in GRT tokens – consumers use GRT tokens to purchase the data.

The Graph Foundation, a digital currency group and decentralized oracle founders, has prioritized the consumer. It also actively ensures the trustworthiness of actors in the process, as well as the credibility of the data through a penalization and reward mechanism.

Where To Buy The Graph (GRT)

The Graph (GRT) tokens can be purchased on most cryptocurrency exchanges. The GRT token experienced its most significant price appreciation in February 2021, when the token reached its all-time high of $2.24.

Five of the most popular crypto exchanges used by cryptocurrency traders are:

1. Gate.io
2. Kraken
3. KuCoin
4. HTX
5. Crypto.com

Many individuals prefer to keep their tokens off exchange in digital or hardware wallets. Most people consider it to be the most secure option. Many exchanges suffer hacks from time to time and it’s crucial for users to keep their tokens in a safe wallet.

To help you pick the right wallet for you, some of the most popular digital wallets and hardware wallets can be found here.

About The Graph (GRT)

How long has The Graph (GRT) existed?

The Graph was initially brought about in July 2017 and went on to start in December 2018.

The first funding for the project started the following year and Graph Node was open-sourced in the same year. The project was founded by Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez.

The Graph managed to raise $19,5 million in 2019 and a further $10 million from its public sale in 2020.

The GRT cryptocurrency has seen significant price appreciation since its listing, and it experienced its highest trading volumes in March 2021.

What’s controversial about The Graph (GRT)?

The blockchain space is booming with new projects, heightened trading volumes, and innovative networks that are revolutionizing traditional finance. However, due to the explosive growth in the blockchain space, there is still a considerable amount of risk associated when investing in any cryptocurrency.

Individuals should be cautious before investing in any project and research the project, its history, its founders, and any other important factors surrounding the project.

Here’s the biggest controversy surrounding The Graph (GRT)

• Competition – There are an enormous amount of projects entering the blockchain space and not all of them are as transparent as they claim to be. Most projects claim to solve complex problems that most retail investors don’t truly understand. However, blockchain data retrieval and processing are definitely needed.

  The Graph (GRT) has real-world utility but it’s not the only project aiming to provide these solutions. One of its largest competitors will be Chainlink – a decentralized oracle that has already taken the market by storm.

  Many new projects fail because there is a tremendous amount of over-saturation in the market; other projects succeed because the utility they provide is truly needed. The Graph’s success is reliant on its adoption by consumers, credibility, and seamless facilitation of data processing.

How many The Graph (GRT) tokens are there?

At the time of writing, The Graph (GRT) has a circulating supply of 4.72B GRT.

The total supply of The Graph (GRT) is 10,000,000,000.

And the max supply of The Graph (GRT) is 10,057,044,431.

Can The Graph (GRT) be mined?

The Graph (GRT) can’t be mined in the same classical sense as projects such as Ethereum or Bitcoin. Instead, users can earn GRT tokens by becoming network participants.

Individuals have the option of becoming a critical part of the indexing protocol by becoming indexers, curators, or delegators.

Some centralized exchanges also offer staking rewards for users who lock up their GRT tokens for a duration.

What is the market cap of The Graph (GRT)?

The market cap of any cryptocurrency can be calculated by the total amount of coins in circulation times the current market price of the coin.

The Graph (GRT) Market Cap = 4.72B GRT x $0,3288 = $1,55 billion (56th largest cryptocurrency by market cap).

Biggest Competitors Of The Graph and GRT

The Graph is one of the most innovative projects that has recently entered the crypto space. The incorporation of smart contracts which securely facilitate the various data processes makes the project an exciting and much-needed blockchain project.

The Graph council has cemented its position as a core protocol for web3 which will facilitate the querying of data. However, The Graph is not the only project that is specializing in blockchain data.

The Graph (GRT) top competitors:

• Chainlink
• Alchemy
• Covalent

What Are The Future Plans of The Graph and GRT

The analytics company has built an incredibly innovative indexing protocol with real-world utility. It facilitates portions of the processing through indexes called subgraphs, a part of a much bigger system that has been flourishing over the past few months.

Query fees are paid in GRT and the entire revenue mechanism of the protocol is seamless. The project has amassed a significant amount of interest and has partnered with the likes of Uniswap.

The future success of the project is reliant on more influential projects utilizing the services provided by The Graph. As soon as adoption is bolstered, it will have a positive effect on the economy of the GRT token.

The Graph council has announced its intention to partner with more projects, providing the retrieval and processing of blockchain data for these projects.

The true potential of this project is yet to be seen, and only once user adoption and consumer adoption increase will we see the true potential of The Graph.

 

Pros And Cons Of The Graph (GRT)

Pros:

• Bridges DApps and blockchain data – The role of The Graph is to facilitate complex data processes and provide consumers with the data that they query. There is an especially demanding market for blockchain data as well as secure and credible projects handling the data processes.
• Smart contract functionality – One of the major advantages of the protocol is that it uses smart contracts to ensure security and transparency for all of the data processed.
• Successful public sale – The Graph managed to raise more than $12 million in its public sale which is indicative of the anticipation and excitement surrounding the project.

Cons:

• Competition – As previously mentioned in the article, The Graph definitely has real-world utility but it also isn’t the only influential player in the crypto space. Decentralized oracles have recently surged in popularity and people, as well as other blockchain projects, recognize the need for transparent and accurate blockchain data.

  The Graph will need to bolster the adoption of its services, partner with influential projects in the crypto space, and keep building more utility for the project and its native GRT token.