The Graph Rakes in $2.5 Million in Seed Funding & Unveils Hosted Crypto-Service
SAN FRANCISCO, CA — Last week was a big one for Blockchain-based platform The Graph – first of all announcing $2.5 Million USD in seed-funding, led by Multicoin Capital, a crypto-based hedge fund founded in 2017, as well as the launch of a hosted service for indexing data from Ethereum.
The Graph is a query layer for Blockchains, initially focused on Ethereum. Query functionality is a critical piece of development infrastructure. Prior to The Graph, developers had to build homegrown, centralized indexing servers to serve up data for decentralized applications (dApps). This approach takes time, is capital-intensive, and re-introduces centralization, defeating the purpose of the dApp. The new hosted service by The Graph enables developers to quickly index data from smart contracts, unlocking rich new data sources to power dApps. The company plans to offer both centralized and decentralized services in 2019.
“The Graph solves the problem of extracting valuable blockchain data by exposing both Ethereum and IPFS to developers using a distributed, redundant, permissionless network via a GraphQL endpoint,” said Kyle Samani, Managing Partner, Multicoin Capital in a press release about his firm’s infusion of capital into The Graph. “The problem that The Graph solves is immense. It will have expansionary effects on the market as a whole. We firmly believe that it’s going to be one of the most critical protocols in the Web3 stack.”
“Today, The Graph is publishing the spec for the hybrid decentralized protocol. This version allows anyone to run a node to provide indexing and query processing services to the network in exchange for payment,” said Brandon Ramirez, Research Lead at The Graph. “This spec is open source and includes details about indexing, querying, payments, token mechanics, and incentive design in the network. Our team is calling on researchers and academics to review the specs and help us fulfill our mission of accelerating decentralization.”