table of contents
Forbes Advisor provides this content for educational purposes only and is not intended to assist you in deciding whether to invest in cryptocurrencies. When investing in cryptocurrencies or other investments, you should always obtain appropriate financial advice and only invest amounts that you can afford to lose.
GRT is the native token of The Graph, an artificial intelligence (AI)-powered crypto project that aims to do for blockchain what Google did for the internet.
Let’s take a look at what The Graph does and why it’s important.
The Graph is open source software hosted on the Ethereum blockchain (“open source” means the underlying code is available for anyone to view).
It exists to collect and store data from blockchains such as Ethereum and Avalanche, and make it searchable by users. Google is similar in that it collects and stores information from websites to make the Internet searchable.
Data collected by The Graph is organized into indexes known as subgraphs to make queries to The Graph more efficient. Queries are done via decentralized applications (dApps).
A dApp is an application that is hosted on a blockchain rather than on servers owned by a company, as is the case with WhatsApp, which is an application hosted on meta-owned servers.
The dApp designed to query The Graph is written in a programming language called GraphQL, which was created by Facebook to power its News Feed.
GRT is the native currency of The Graph, just as ETH is the native currency of Ethereum. The economy of The Graph is based on people spending GRT to participate and earning GRT for participating.
Anyone who wants to query The Graph to find data on the blockchain must use GRT and pay a fee. Within The Graph, these people are referred to as consumers.
Thanks to cryptocurrencies, we tend to think of blockchain as a place to store records of financial transactions, but blockchain can be used to store all kinds of data.
For example, the metaverse platform Decentraland has a Decentralized Autonomous Organization (DAO) where members can vote on things like how content moderation works within its virtual world. This DAO has a blockchain that contains data that consumers may want to query to aid in software development.
Graph has volunteers called curators, indexers, and delegators who work to process data and share it with consumers.
These participants can earn fees from the network for their work, but must stake GRT for the opportunity. The purpose behind volunteers pledging their own GRTs as collateral is to maintain the integrity of the data on The Graph.
Curators evaluate which subgraphs are worth indexing and assign them GRTs. Indexers are volunteers who take on the task of actually collecting data for the subgraphs identified by curators. The delegator gives her GRT to the indexer as a reward.
There are also users called fisherman, who are responsible for validating query responses, and arbitrators, who are responsible for identifying malicious indexers.
GRT can be traded on many popular crypto exchanges including eToro. At the time of writing, 1 GRT was worth 9p. This is down from the high of 1.89 pounds in spring 2021.
Since GRT is a cryptocurrency, it is inherently unstable. The UK government is currently consulting on plans to bring cryptocurrencies into regulation to protect consumers, but until then – as the Financial Conduct Authority (FCA) has repeatedly warned – -Those planning to invest must be prepared to lose all their funds.
Cryptocurrencies are not regulated in the UK. UK regulator the Financial Conduct Authority has repeatedly warned investors that buying cryptocurrencies risks losing all your money with no possibility of compensation.