What is The Graph (GRT)?
👋 New to this? Just start reading at the top — it begins in plain English and gets more detailed as you scroll. Jump to any level:
🟢 The simple version
Plain English — no jargon. Start here.
The Graph is the indexing and querying layer for blockchain data — it processes and organises on-chain data from Ethereum and 40+ other chains into "subgraphs" (structured data APIs) that developers use to build DeFi apps, NFT marketplaces, and other dApps that need fast, reliable access to blockchain history.
Why The Graph exists — the blockchain data problem
Blockchain data is stored inefficiently for querying. If you want to find "all Uniswap swaps by wallet 0x1234 in the last 30 days," you'd theoretically need to scan every Ethereum block for three years — impractically slow. Traditional databases support efficient queries; blockchains do not natively.
The Graph solves this: "indexers" run The Graph's open-source software, which scans blockchain data and builds structured indexes (subgraphs) optimised for specific queries. A dApp developer writes a subgraph definition for their protocol — it specifies which events to index and how to organise them. The Graph network maintains this index continuously, and the dApp queries it via standard GraphQL APIs. Uniswap, Aave, ENS, and hundreds of major protocols rely on The Graph for their front-end data.
GRT token economics
GRT is the native token of The Graph network. Indexers stake GRT to participate in indexing and earn query fees + indexing rewards. Delegators stake GRT to indexers they trust, earning a share of rewards without running infrastructure. Curators signal on subgraphs they believe are valuable — depositing GRT to indicate quality subgraphs. This three-role ecosystem (indexer, delegator, curator) creates economic incentives for the network to index quality data.
Is GRT legal in India?
Yes. GRT qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
The Graph's role in Web3 development
If you've used any DeFi front-end — checking your Uniswap trade history, viewing your ENS profile, seeing your Aave borrow history — you've almost certainly used data served by The Graph. The protocol serves billions of queries per month across its hosted service and decentralised network. This makes The Graph one of Web3's most critical pieces of infrastructure, even though it's invisible to end users. It is analogous to how Google's search index is invisible to users but powers much of the web.
Hosted service vs decentralised network
The Graph initially operated a centralised "hosted service" (free, fast, easy) alongside the decentralised network (paid, decentralised, GRT-powered). The transition to full decentralisation has been gradual — many dApps still use the hosted service or Goldsky/Alchemy subgraph alternatives because they're simpler. The Graph has been migrating protocols to the decentralised network, and query volume has grown, but the transition timeline has been longer than initially anticipated.
The Graph is transitioning from a centralised hosted service to a decentralised network. During this transition, many protocols use the hosted service, which reduces GRT query fee demand. The decentralised network needs sufficient query fees to make indexing economically viable long-term. Monitor decentralised network query volume growth as the key health metric. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: GRT (network utility, 10 billion max supply)
- Function: Blockchain data indexing and querying layer
- Chains: Ethereum, Arbitrum, Polygon, Solana, and 40+ others
- Query language: GraphQL
- Network roles: Indexers (stake GRT, run nodes), Delegators (stake to indexers), Curators (signal subgraph quality)
- Users: Uniswap, Aave, ENS, Decentraland, and hundreds of major protocols
- Founded: 2018
- Backing: Multicoin Capital, Framework Ventures; raised ~$25M
- Hosted service: Free centralised alternative (being phased out for decentralised network)
Subgraph architecture
A subgraph is defined by three components: (1) a manifest file specifying which smart contract addresses and events to watch; (2) a GraphQL schema defining the data structure; (3) mapping functions (written in AssemblyScript) that transform raw blockchain events into the schema. When an indexer processes a subgraph, it replays all relevant historical blockchain events through the mapping functions, building an indexed database. New events are processed in near-real-time as blocks arrive. Queries hit this indexed database rather than raw blockchain data, returning results in milliseconds instead of hours.