Why do we need Graph Crypto? Let’s answer this question with an example; let’s say I do a Google search and enter a specific query, and with just one click I get the answer to my question. Have you ever thought about how it happens? It happens because Google is using some sort of indexing algorithm at the backend, with the help of this it can answer our queries quickly and efficiently. The indexing algorithm makes Google efficient and fast because instead of scanning the entire database, the indexing algorithm searches only the specific chunk of the database based on indexes.
What Is Graph Crypto
The graph is an indexing protocol that is completely decentralized and open source, It is used to store data as well as analyze data. It analyzes data before storing it in the databases, after analysis, it stores the data in various indices, called subgraphs. It allows any application to send the request to the graph protocol and it responds to the request immediately.
Crypto graph is also called crypto google and why is this called crypto google because it works like google. Let’s have a broad view of Graph Crypto!
What Information Is Indexed by Graph Crypto
Although Graph crypto stores even a single action done on the blockchain, as we discussed before storage Graph protocol analyzes the data and then stores it accordingly. Graph Crypto is basically divided into three main components:
- Subgraphs Crypto
Let’s discuss all the components mentioned above one by one!
1: Subgraphs Crypto
Subgraphs extract data from the blockchain, and after analysis of the data, it would be stored. So that it can be easily queried by GraphQL. It consists of a few files like subgraphs.yam1, and schema.graph q1.
- yam1 contains the subgraph manifest
- graph1 It outlines what information is kept for your subgraph and how to use GraphQL to query it.
Let’s understand this by an example, Subgraphs crypto helps the Web3 developers’ community, as we discussed it is completely open source so the developer can request a chunk of code and can integrate it into the entire project. For instance, If I say someone wants to develop a new project like uni swap with some additional features so they can fetch or retrieve it from Subgraphs and then can integrate it with their entire project.
Consumers are the end users of Graph Crypto, they can query needed data by using query engines and they have to pay fees to indexers for the task accomplishment.
Indexers are the contributors who organized the unorganized data and then let it be stored with the predefined schema. Indexers run nodes on the Graph protocol, they stake GRT tokens (the native token of the Graph protocol) to accomplish this task. So that the users can get these data through various decentralized apps like uni swap, sweat economy, earn tube polygon, and atomic asset wax. All of the decentralized application's data are indexed by the indexers so that it retrieves efficiently and in return indexers earn rewards.
Curators work to evaluate the subgraphs and then find the best one after evaluation, in return they earn rewards from the indexers.
Curators are the guides to indexers; they send signals to the indexers about the most advanced subgraphs. For instance, for the indexers, it is quite a tough task to find which subgroup is mandatory to index, so the curator lets them know about the particular subgraph that is mandatory to index.
The last and most important component of the Graph crypto ecosystem, they don't need to run the nodes instead they have GRT tokens, and they delegate these tokens to the indexers. In return, they earn rewards from the indexers.
Fisherman nodes are responsible to verify the indexers, as we discussed they stake GRT tokens to accomplish their task but what if they act maliciously or failed to verify by the Fisherman? In this case, their all-staked token would be slashed, and the Fisherman earns 50% of the slashed amount.
Generally, the arbitrator is a person who is officially hired to make the best decision between two parties, opponents, and competitors to settle a dispute. We can say in the Graph that crypto Arbitrators are the nodes initialized by the decentralized governance to verify the indexers, they always help to identify the malicious indexers.
Blockchain information is indexed by graph crypto by using graph protocol. Moreover, it is designed to respond to queries in the Ethereum network. Moreover, it helps the developers to build different API with the help of Subgraphs.