*) Graph protocol is an indexing protocol for querying blockchain networks like Ethereum and IPFS (InterPlanetary File System).
*) This protocol allows people to build open APIs called subgraphs that make blockchain data easily accessible.
*) The commonly used technique for finding information easier is indexing; this protocol helps the indexing process much easier.
How Does It Work?
*) The Graph functions by letting decentralized applications add data to Ethereum through transactions on smart contracts first.
*) Graph nodes then continuously search fresh blocks in the blockchain for the application's subgraphs, and when they find one, they update data entities.
*) The program then performs a complicated process to query the graph node for the indexed data before showing the user this data.
How does the Graph Protocol help?
*) On the Ethereum blockchain, DeFi and NFT applications like Uniswap and Cryptopunks store data that is difficult to read.
*) While basic information like supply should be easily accessible because it is all part of the smart contract, complex inquiries like analytics, holdings for particular addresses, and aggregation are not supported by smart contracts alone.
*) These data are difficult to gather and take decentralized applications and initiatives hours or days to aggregate.
*) By decentralizing the query and API layer, the graph protocol resolves this issue and provides a crypto-native solution to indexing issues encountered by apps.
*) Graph services are utilized by numerous significant protocols, including Uniswap, Synthetix, Dodo, Sushi Swap, ENS, Bancor, Compound, and more.
Benefits from Graph Protocol:-
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No tradeoff
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Flexibility and convenience
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Infrastructure for a decentralized web
In simple terms, Graph protocol is otherwise known as the "Google of Web3."