Data Sharing is important in decision-making processes. The progress in the development of technology also depends on reliable data since developers use existing data to innovate dApps. The Graph is one protocol that enables developers and users to access reliable information.
The Graph is a decentralized platform involved in indexing and querying data. It deals with data found on the ethereum blockchain and the InterPlanetary File System (IPFS). Furthermore, The Graph Protocol enables individuals to create a file system that allows the sharing of data. This data file system is called a subgraph.
Any interested person can, therefore, run a node or computer system that collects and stores data. In the end, all related nodes interlink within The Graph protocol to supply data to users such as developers. You can see that The Graph draws data from the blockchain and storage networks and makes it available to the web3 community. By doing this, it solves several problems.
Problems requiring The Graph solution
Developers usually face the problem of querying data. For a long time, the Web 3 community has been facing this challenge. As a result, blockchain users cannot access quality data from available sources.
This is because to query data, developers and other users have to use custom codes to locate the data they need from the blockchain. Using this method, they have to retrieve the data and keep it in an off-chain database. Developers also have to use indexing servers to interact with their applications. This is usually time-consuming and costly.
There is a lot of data that users and developers must access. This includes trade volumes, prices of assets, and voting results. Such data is used in gaming, software computing programs, the music industry, and many decentralized autonomous organizations (DAOs).
The good news is that The Graph provides the best solution to indexing and querying data.
Solutions that The Graph provides
The Graph has a server that indexes blockchain data. Using a standard GraphQL, these indexes are queried, supplying essential data to developers of dApps. However, to access the data, consumers pay indexers a certain fee. After that, they can use The Graph’s querying engine to access large amounts of data stored on the platform.
Indexing and querying the data is simple. The APIs based on the GraphQL protocol exposes the data, which The Graph end-points translate using the IPFs commands. Once that is done, users access the data.
As you can tell, The Graph uses established technologies to index and query the data. The most popular technologies it incorporates include IPFs and GraphQL. Currently, subgraphs are powering several DeFi applications, including Synthetic, Uniswap, Gnosis, and Balance.
Benefits to users and the Web3 community
Using The Graph solution allows for broader use of the ethereum blockchain and the accompanying dApps. At the moment, open APIs power different dApps, including UniSwap and Aave. In the future, Open APIs will integrate with many more dApps.
Second, the Web3 community has greater access to essential data such as trade volumes, prices of assets, and voting results. Such data is essential for swift and good decision making. This enables application developers to share data easily with one another. As a result, they benefit from the data which each individual owns. Users in different sectors, such as the music and gaming industry, benefit from their information.
Furthermore, The Graph provides a solution to the spread of wrong information since it enables the public to access auditable data. This also means that it is easy to trace index data, which parties can agree on. The news will be backed up by proof in the same vein as it is easily accessible.
The coming on board of The Graph means that indexing and querying data are more accessible than ever before. Developers benefit from accessing reliable data on which they base their new applications. The public is also able to access truthful information backed by proof.