The Graph, which is used to query data on the blockchain and built on the Ethereum network, moved its market value to over $ 500 million in just 2 days.
The Graph price tripled in two days
The crypto currency was launched on December 18, and its market cap increased from $ 150 million to $ 500 million on December 19. The price of the asset increased from $ 0.135 to $ 0.569, which means an increase of over 300% over the period.
Leading crypto analyst Josh Rager told his Twitter followers to pay close attention to the digital asset. According to him, many people do not know that Uniswap is working on The Graph, and they do not realize that cryptocurrency has the potential to become the top player in the DeFi industry.
What does the protocol do?
In the past years, obtaining the highest quality data from blockchain was almost impossible. Later, the only way to do this was to run a dedicated indexing server. These servers needed high level engineering work and also a lot of hardware resources.
In addition to all this, the servers also broke the necessary security features required for decentralization.
The Graph depends on contributors to provide consumers with access to blockchain data. The participants here are made up of three parts and are called indexers, agents and curators.
How do the participants work?
An indexer is a node operator that deposits the crypto asset for services such as indexing and query processing. Indexers can earn returns from query fees.
Delegates, shareholders on behalf of indexers. They don’t want to run a Node and play an important role in the security of the network. They can earn through indexer fees and the rewards accrued to them.
A curator is a developer that depends on signals linked to APIs or sub-graphics that indexers need to index on the Protocol.
Currently, the technology that powers The Graph is used to run some of the best DeFi projects like Uniswap, Aave, and Synthetix.