What is The Graph Protocol?

definition

BLOCKCHAIN DATA INDEXING

The Graph is a decentralized protocol for indexing and querying data from blockchains, enabling efficient access to on-chain information through open APIs called subgraphs.

The Graph Protocol is a decentralized indexing and querying protocol for blockchain data, primarily for networks like Ethereum and IPFS. It allows developers to build and publish open APIs, known as subgraphs, that applications can query using GraphQL. This solves the significant challenge of efficiently accessing and organizing the vast, unstructured data stored on blockchains, which is not natively queryable. By providing a decentralized alternative to centralized indexing servers, The Graph enables a more robust and permissionless data layer for the decentralized web.

At its core, the protocol operates through a network of participants: Indexers (node operators who stake GRT tokens to index data and serve queries), Curators (who signal on valuable subgraphs using GRT), Delegators (who delegate GRT to Indexers), and Consumers (who pay for queries). This ecosystem is secured by the Graph Token (GRT), an ERC-20 token used for work allocation, staking, and payments. Query fees are distributed to Indexers and Delegators, incentivizing a reliable and competitive marketplace for data services.

Developers use The Graph by defining a subgraph manifest that specifies the smart contracts to index, the events to listen for, and how to map event data into entities that The Graph will store. Once deployed, the subgraph is indexed by the network, and its data becomes instantly queryable via its unique GraphQL endpoint. This architecture is fundamental to many DeFi applications (like Uniswap or Aave) and NFT platforms, which rely on The Graph to efficiently fetch prices, transaction histories, and user balances without running their own complex infrastructure.

The protocol's decentralized design ensures data integrity and uptime by distributing the indexing workload across many independent nodes, rather than relying on a single point of failure. This makes it a critical piece of Web3 infrastructure, comparable to how Google indexes the web, but in a verifiable and community-governed manner. By abstracting away complex data processing, The Graph significantly lowers the barrier to building performant decentralized applications (dApps) that require rich, real-time on-chain data.

how-it-works

ARCHITECTURE

How The Graph Protocol Works

The Graph Protocol is a decentralized indexing and query protocol for blockchain data, enabling applications to efficiently retrieve information from networks like Ethereum and IPFS.

The Graph Protocol operates as a decentralized data layer for Web3, using a network of participants to index and serve blockchain data via open APIs called subgraphs. Developers publish subgraphs, which are manifest files defining the smart contracts, events, and data transformations to index. Indexers then operate nodes that scan the blockchain, process these events, and store the resulting data in queryable databases, earning fees for their service.

To retrieve data, a decentralized application (dApp) sends a GraphQL query to a public or private endpoint. The query is routed through a gateway, which identifies the relevant subgraph and directs the request to Indexers who have staked the protocol's native GRT token to serve that data. Delegators can stake GRT with Indexers to share in their rewards, while Curators signal on high-quality subgraphs by depositing GRT, guiding Indexers to valuable data sources.

This ecosystem is secured by cryptoeconomic incentives and a dispute resolution layer. Indexers must stake GRT as collateral, which can be slashed for malicious behavior. A Fishermen role exists to challenge incorrect query responses, and Arbitrators make final rulings on disputes. This ensures the network provides reliable, verifiable data without relying on a centralized intermediary, forming the backbone for countless DeFi, NFT, and analytics platforms.

key-components

GRAPH PROTOCOL

Key Components of The Graph Network

The Graph is a decentralized protocol for indexing and querying blockchain data, enabling applications to efficiently access on-chain information through open APIs called subgraphs.

01

Subgraphs

A subgraph is a data indexer for a specific smart contract or dApp. It defines the data to index (events, functions) and how to transform it into a queryable API using GraphQL. Developers publish subgraphs to The Graph Network, making their application's data publicly accessible.

Feature / Metric	The Graph Protocol	Centralized Indexer / API	Full Node RPC
Data Availability	Decentralized, redundant network	Centralized, single point of failure	Self-hosted, single point of failure
Query Language	GraphQL	Custom REST API or SQL	Low-level JSON-RPC
Data Freshness (Indexed Data)	< 1 block	Minutes to hours	Real-time (raw)
Developer Onboarding	Define subgraph schema	API key, rate limits, documentation	Sync node, manage infrastructure
Query Cost Model	GRT payment to Indexers	Subscription fees or pay-per-call	Infrastructure & operational costs
Censorship Resistance	High (decentralized network)	Low (provider-controlled)	Self-determined
Historical Data Access	Instant via indexed subgraph	Limited by provider retention policy	Full history (if archival node)
Data Transformation	On-chain logic in mapping handlers	Post-processing in application layer	Manual application-layer processing

Graph Protocol