The Graph

The Graph is an indexing protocol that makes blockchain data queryable. Raw blockchain data is difficult to read directly, because it is stored as a sequence of transactions rather than in a structured database. The Graph solves this by allowing developers to define subgraphs, which specify how to index particular contracts and expose the results through a GraphQL API.

How The Graph works

The network has several participant roles, each staking GRT to take part. Indexers run nodes that process and serve queries, curators signal which subgraphs are worth indexing, and delegators stake GRT with indexers without running infrastructure themselves. Consumers pay query fees in GRT. This creates a market in which indexing capacity is directed toward the data that applications actually need, and misbehaviour by indexers can be penalised through slashing of their stake.

GRT is an ERC-20 token with a maximum supply of approximately 10.8 billion, essentially all of which is in circulation. The protocol applies a burn on query fees and on curation and delegation taxes, offsetting the indexing rewards issued to network participants.

Role in the ecosystem

Before The Graph, most decentralized applications relied on centrally operated indexing servers, which reintroduced a single point of failure into otherwise decentralized systems. The Graph became widely used as the data layer for DeFi and NFT applications, and it now indexes data across many networks beyond Ethereum. The project has more recently extended into services beyond subgraph indexing, and it is categorised in the artificial intelligence and analytics groups as data access becomes relevant to AI applications reading on-chain state.