Revolutionizing Web3 Data Markets: The Graph’s Cost-Effective Approach

“Data is a precious thing and will last longer than the systems themselves.” — Tim Berners-Lee

In the dynamic world of digitalization, blockchain is the latest supercar in town and data is the new oil that helps keep it running.

How? The blockchain faces a significant limitation: it doesn’t have built-in mechanisms to efficiently access blockchain data, especially when dealing with large datasets.

Imagine that, as a developer, you have access to seamless high-quality data, wouldn’t that be bliss? Well, heaven is here on earth and it is sculpted by The Graph Ecosystem.

What is Data and its role in Web3?

The majority of us know what data is and how important it is to our day-to-day lives, but what is it to the Web3 world? Well, data is oil that Blockcahin and the ecosystem run on. It’s the “essence” encoded in transactions, token balances, hashes, nodes and smart contracts.

Every interaction, every transaction leaves a trace—a data point etched in the blockchain.

Data governs decentralized systems, ensuring transparency, immutability, and trust.

Importance of Data in Web3 Space

In the Web3 universe, trust operates differently than in traditional systems. Here’s why data matters:

• Transparency: Web3 data is like an open ledger. Every transaction, every event leaves a trace — a data point etched into the blockchain. Transparency ensures that no hidden forces distort our view.
• Immutability: Once data enters the record, it remains unchangeable. Smart contracts rely on this certainty. Imagine them as automations executing based on accurate data inputs.
• Resilience: Decentralized networks don’t crumble when a single node falters. They’re resilient, like cosmic storms spanning light-years.
• Interoperability: Decentralization bridges gaps. It is important that data flow seamlessly between network and chains. It’s the universal language of Web3.
• Oracles: Smart contracts reach out to oracles — external data sources — to verify real-world events. Accurate data ensures our smart contracts don’t steer us in the wrong direction.

The Graph: Empowering Web3

Think of The Graph as Google for blockchains — an efficient search engine that organizes, indexes, and serves data from various blockchains. Its mission? To make data accessible, reliable, and efficient.

It is a decentralized data marketplace and the pioneer of standardized subgraphs. The Graph is the bridge connecting developers, users, and decentralized applications (dApps) to blockchain data. The Graph has become Web3’s go-to for indexing and accessing blockchain data. It bridges the gap between developers, users, and blockchain data. Let’s explore how The Graph achieves efficient data access, cost-effectiveness, and near-perfect uptime;

Developers

Developers are a very crucial wheel in the Graph ecosystem, They create dApps, smart contracts and querying subgraphs effortlessly.

Indexers

They map subgraphs across various blockchains. Indexers query pre-indexed subgraphs by using infrastructure built by the devs. By using subgraphs, they save up to 60–98% compared to self-hosted solutions.

Curators

Curators evaluate subgraphs, ensuring accuracy and reliability. They guide developers towards high-quality subgraphs, promoting seamless data exchange across chains. They are the “quality assurance” guys of the graph ecosystem.

Delegators

Delegators protect the network by staking tokens. They play a major role in the decentralization of the graph ecosystem. They distribute power, ensuring resilience and reducing reliance on single points of failure.

The Role of The Graph on the BlockchainCost-Effective Data Access:

The Graph tackles the cost challenge head-on, introducing the four-step model that makes data access affordable for developers. By leveraging decentralization and community building, The Graph provides a cost-effective solution. How do they do this?

• Reduced hardware costs:
  Graph databases are often optimized for handling complex queries efficiently. This results in reduced hardware requirements compared to traditional relational databases, leading to cost savings in terms of server infrastructure.
• Scalability:
  With traditional subgraphs, scaling often involves significant hardware upgrades and associated expenses. The Graph Network offers superior scalability, enabling developers to scale their applications more easily and cost-effectively.
• Faster Query Performance:
  The nature of The Graph allows for quicker and more direct traversal of relationships between data points. This can lead to faster query performance, potentially reducing the need for extensive indexing and optimizing efforts.
• Simplified Schema Design:
  The Graph generally have a more flexible schema design, allowing developers to adapt and evolve their data models without significant modifications to the database structure. This flexibility can lead to reduced development time and costs associated with schema changes.
• Elimination of Joins:
  Traditionally, subgraphs often require complex join operations to retrieve related data from multiple tables. Subgraphs on The Graph Network, on the other hand, model relationships inherently, reduces the need for joins and improves query performance and maintenance efficiency.
• Adaptability to Evolving Requirements:
  As applications evolve, the graph model allows for the seamless incorporation of new relationships and data points. This adaptability can reduce the need for extensive database restructuring and associated costs when accommodating changes in business requirements.

Shift Away from Centralized Providers:

Bid farewell to the monopolistic grip of centralized data providers. The Graph empowers developers by decentralizing data sources, ensuring a more democratic and transparent data market. No longer are developers at the mercy of a single entity; instead, they embrace a distributed ecosystem.

The traditional centralized model has long dominated data markets, limiting developers’ choices and transparency. The Graph’s innovative approach using the decentralization model enabled by the $GRT token ensures that devs can build on the blockchain with ease, effectiveness and efficiency.

Monetization Opportunities:

The true innovators of The Graph ecosystem are the subgraph developers. The Graph recognizes its pivotal role and offers a unique opportunity for monetization. Through the creation of specialized subgraphs, developers can not only contribute to the ecosystem but also earn rewards, fostering a collaborative and thriving community.

Ah, the Indexers they’re like librarians in a library, dusting off ancient scrolls and deciphering cryptic runes. Their job? Indexing and serving data through subgraphs (which, by the way, are essentially using APIs).

Indexers earn indexing rewards by “staking” their claim on specific subgraphs, and when the curation signal aligns, they receive rewards. When data seekers make queries to the subgraphs, query fees are then charged. Indexers collect their share, but patience is key — the rewards can only be claimed after the dispute period has passed.

Delegators participate in the network by staking their GRT tokens with one or multiple indexers. They indirectly benefit from the rewards earned by the indexers they delegate to. When Indexers receive rewards, a portion of those rewards is shared with their delegators.

Conclusion:

The Graph is a transformative force, breaking down barriers and ushering in a new era of accessibility, decentralization, and prosperity for developers. Wouldn’t you love to build on a network where data is not just a commodity but a collaborative journey?

If you want to explore The Graph’s ecosystem, and build subgraphs more efficiently and effectively, check out The Graph’s:
Twitter | Discord | Documentation | The Graph Protocol

Revolutionizing Web3 Data Markets: The Graph’s Cost-Effective Approach was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.