The Graph

The Graph is a protocol for developing decentralized applications on Ethereum and IPFS utilizing GraphQL. On the platform, queries are processed on a decentralized network that keeps the data open and allows dApps to run. Users don’t need teams to operate servers, and developers can deploy to public infrastructure without personal management.

The Graph is an open-source and decentralized indexing protocol for blockchain data, made to enable querying on the Ethereum network. It allows developers to build different APIs, called subgraphs, for varying queries. The protocol addresses the issue of query security, property finality, chain reorganization, and other problems solved with subgraphs. It relies on nodes to operate The Graph mainnet and offers a platform for dApps and developers. Indexers, curators, and delegators participate in the marketplace with GRT tokens.

The Graph utilizes the Subgraph Manifesto to index Ethereum-based data. This is the description of a subgraph containing data about smart contracts, blockchain events, and the process of mapping event data before storage in the platform’s database. The data flow from transactions, subgraph manifests, plus the database follows a particular structure. It begins with decentralized applications that include data to the Ethereum blockchain utilizing smart contracts. The data possesses a record of events and transactions up to the final point.

The Graph Node scans the blockchain database, collates data, and filters those vital to users’ queries. To streamline indexing, it identifies pieces of information answering the queries from subgraphs. GraphQL is the link connecting the blockchain data and the application that a user wants to feed it to. Users can view their query results from their applications and refer to Graph Explorer to browse the subgraphs that exist on the platform. The subgraphs possess a playground where users can perform queries utilizing GraphQL.

The ecosystem of the platform comprises the following individuals:

• Consumers: These are users who pay indexers for their searches. They can be web services or other software linked to The Graph.
• Indexers: These are node operators in The Graph Network that stake Graph Tokens (GRT) to offer indexing and query processing services. Indexers are responsible for indexing data from decentralized APIs and are incentivized by receiving query fees from data consumers and indexing rewards from the protocol. To participate, indexers stake at least 100,000 GRT, subject to slashing depending on malicious behaviors. Indexers also have to operate a version of The Graph Node. Aided by an indexer agent, they can programmatically monitor resource usage, define prices and pick which subgraphs to index.
• Curator: With GRTs, curators identify for subgraphs the vital information to the platform’s index. They are subgraph developers, data consumers, or even community members who signal to indexers the APIs that should be indexed by The Graph Network. Curators put GRT in a bonding curve to signal on a particular subgraph and get a portion of query fees for the subgraphs that they signal on. They curate on subgraphs and deposit GRT through the Graph Explorer dApp. Since this happens on a bonding curve, the earlier they signal on a subgraph, the more of the query fees they get on that subgraph for a certain amount of GRT deposited. When they withdraw, they could end up with more or less GRT than they began with.
• Delegator: Delegators are other stakers who delegate their GRT to existing indexers and earn a portion of the rewards. Delegators contribute their stake toward indexers of their choice. They do not run their own node.
• Fishermen: These verify the accuracy of the network’s response to queries. They validate responses and are responsible for securing the network.
• Arbitrator: Arbitrators decide if an indexer is malicious or not. They also resolve disputes.

GRT is the native cryptocurrency of The Graph network. It is utilized in allocating different resources that are used in The Graph ecosystem. The Graph Node supports the network, which scans the blockchain database utilized by network participants. Developers and network participants utilize GRT tokens to pay for utilizing and creating a subgraph. By indexing data, developers are able to define the structure of data by specifying how it should be utilized by dApps. Indexers make a decentralized market for queries for consumers to pay in GRT to utilize services that are available on the network.

To ensure the economic security of The Graph Network, as well as the integrity of data being queried, participants utilize Graph Token (GRT). GRT is a work token that can be locked up by indexers, curators, and delegators to offer indexing and curating services to the network. It is an ERC-20 token on the Ethereum blockchain.

Active indexers, curators, and delegators are able to earn from the network proportional to the amount of work they put in and their GRT stake. Indexers get indexing rewards and query fees, and curators get a portion of query fees for the subgraphs they signal on. Delegators get a portion of the income received by the indexer they delegate to.

There are two main functions of Graph Tokens that are important to the functioning of the protocol:

• Indexer staking: Indexers in The Graph Network are required to deposit at least 100k GRT for economic security. The deposit can be slashed if there's malicious behavior. The deposited Graph Tokens enable indexers to be discovered in the query market.
• Curator signaling: Graph Tokens power The Graph's curation market. Curators deposit GRT in a Bancor Bonding Curve to mint curation shares of a subgraph. If they accurately predict high-quality subgraphs, Curators get a portion of the subgraph’s generated query fees.

Other functions of Graph Tokens include the following:

• Payment settlements: Data consumers of The Graph can deposit Ethereum or another stable coin in their wallet. To ensure a standard arithmetic unit across the protocol, the query payments are settled in GRT. This is the same for delegators and curators who need to pay a delegation tax or curation tax in GRT when they interact with the respective contracts.
• Delegator staking: Delegators assist in securing The Graph Network when they delegate their stake to preferred indexers. For incentive, they receive a percentage of the query fees, plus indexing rewards the indexer earns.
• Incentive mechanism: Graph Tokens can be utilized to offer incentives for particular desired behaviors of market participants, like issuing tokens to incentivize indexing subgraphs.