- After The Graph Foundation’s Sunrise initiative was completed, The Graph moved to a fully decentralized data layer.
- Subgraphs are transformed from centralized hosting providers to a globally dispersed network of data indexers that are rewarded with tokens.
The Graph—an indexing and query protocol for structuring blockchain data—moved to a completely decentralized data layer following the completion of The Graph Foundation’s Sunrise project.
With subgraphs upgraded from centralized hosting services to The Graph’s worldwide dispersed network of token-incentivized individuals and independent businesses that function as data indexers, Sunrise completes a three-phase decentralization strategy.
In contrast to web2 applications, no single business uses the network to serve all data. Rather, each indexer selects which application on The Graph they wish to sync with and answer queries for, and users compensate them for their network contribution with native GRT tokens.
As stated by Vitalik Buterin, “We have removed the ‘training wheels,’ with the completion of The Graph’s Sunrise of decentralized data,” according to a statement released by Tegan Kline, CEO of Edge & Node, one of the development teams behind The Graph protocol.
With token incentives, the Graph’s Network of data indexers is now entirely decentralized. Dependencies on centralized hosting providers or temporary workarounds are no longer present.
How it functions
Subgraphs were first used by The Graph in 2018 to index Ethereum; today, over 55 chains are indexed, including Cosmos, Optimism, Base, Arbitrum, Avalanche, and NEAR.
Subgraphs are a useful tool for developers to swiftly gather and arrange data from blockchain networks for use in decentralized apps. Data from decentralized filesystems like Arweave and IPFS can be accessed by subgraphs.
Kline informed that over 6,000 subgraphs on The Graph network are currently operational and have generated over 900 million inquiries in the last 30 days, more than ten times as much as the previous year. Data service prices have also increased by 369% year over year.
According to The Graph Foundation, these include initiatives like AAVE, Balancer, Snapshot, Decentraland, ENS, Lido, PancakeSwap, and SushiSwap, which let consumers swiftly and simply access blockchain data.
According to Kline, developers post subgraphs to The Graph Network, which is implemented on Arbitrum. Subgraphs can be indexed after they are published by a network of over 100 globally distributed indexing nodes. To provide redundancy and scalability, many indexers compete to serve queries. There are still indexers accessible to answer queries in the event that one goes down.
According to Kline, indexers are compensated for upfront data indexing through the protocol’s indexing rewards and query fees, which are paid with each query sent by dapps and data consumers.
She also stated that indexers had to meet the minimum hardware specifications of 16 CPUs, 1TB storage, and 32GB RAM, in addition to having to self-stake at least 100,000 GRT tokens.
Because of this, dapps are able to decentralize their data pipelines by assigning The Graph network responsibility for their data requirements, including the expense of operating physical equipment or maintaining databases, according to Kline.
Put another way, developers use The Graph to obtain the onchain data they require in a dependable, decentralized, and user-friendly manner for their dapps.
Although anyone could conduct transactions on the blockchain, viewing that data frequently required using centralized SaaS services. The decentralization of this crucial function by the Graph is simply one of many long-overdue advancements for the web3 domain as a whole.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
