Indexing and Querying Protocol, The Graph (GRT), Launches A Micro-Transaction Solution, Scalar
The Graph, a decentralized indexing and query protocol, announced the launch of Scalar, a micro-transaction scalable solution for fast and cheap fees on the network.
Announced Wednesday, Scalar, built on the Connext Vector protocol, will provide micro-transaction solutions on The Graph network to reduce the fees and increase scalability when querying on the protocol. Additionally, Scalar introduces incentives – paid in its native GRT token – for The Graph’s node operators and data providers.
The micro-transaction solution is developed by The Graph Foundation and Edge & Node, a software development company specialized in building and using Connext, which is a peer-to-peer, cross-chain liquidity network specializing in micro-transactions.
Billed as the “indexing and querying layer of the decentralized web,” The Graph connects decentralized finance (DeFi) applications to different blockchains. The platform’s querying service allows users (DApps) to get data from other blockchains to enhance their functionality – especially DeFi projects. Top DeFi projects such as Uniswap (UNI), AAVE, and Synthetix (SNX) and blockchains such as Solana (SOL) have turned to the platform to link data from other blockchains.
The Graph’s indexing and querying service has grown exponentially over the past year as the DeFi, and non-fungible token (NFT) market took center-stage in the crypto universe. According to the post, The Graph hosted query service has exceeded 14 billion queries in February alone and 19 million in March – representing a 10,000% increase from last year as the crypto world turns to Ethereum-based DApps.
With the rising number of queries, The Graph turned to Scalar micro-transactions to reduce the average load time for DApp users, which could blow out of proportion on current systems. A statement from the dev team reads,
“Using Scalar, node operators have a new way to monetize their infrastructure through query fees paid in GRT, and data providers can be paid directly for making useful data available for apps without paywalls and ads.”
The scalar solution uses state channels to aggregate and compress transactions before being finalized on-chain. In the post, The Graph Foundation states they have been working and researching heavily on how state channels work before starting the development of Scalar two years ago.
“This is the first time state channels will be used in broad-scale production,” Tegan Kline, co-founder and business leader at Edge & Node, stated.
“Scalar is this major new building block for infrastructure in the decentralized applications space. We’ll be using this within The Graph ecosystem to be able to handle the billions of queries that we’ve seen on The Graph’s hosted service, in The Graph’s decentralized network.”