The Graph, an indexing protocol that enables developers to access data in a scalable manner for web 3.0 applications, recently closed a $5 million SAFT round with several major names joining the round.
According to the announcement, Framework, ParaFi Capital, COINBASE Ventures, Digital Currency Group, CoinIX and Tally Capital all joined the round, with continued participation from Multicoin Capital and DTC Capital. The new capital brings the total amount raised by the startup to $7.5 million and will be used to launch The Graph’s new decentralized network and token.
“The Graph is working to make decentralization a reality. Blockchain developers have had trouble bringing their ideas to life because the infrastructure for Web3 wasn’t ready,” said The Graph’s co-founder, Yaniv Tal. “Teams used to spend months building proprietary indexing servers and operating the servers themselves. The Graph built an indexing protocol that allows developers to build beautiful consumer-grade applications without running servers. It’s designed to link fragmented data and make it all accessible via a convenient GraphQL API.”
The Graph’s progress and traction are notable. Since launching in 2019 with major partners including Synthetix (SNX), Uniswap, Gnosis, Aragon, Livepeer, Melonport, and Decentraland (MANA), The Graph has become a go-to data provider with 50 million queries per day and over 750 million queries in May alone, which was up 45% from April.
The fundraising and token announcement highlight The Graph’s intentions to transition its hosted open-source, but centralized, service to a decentralized network.
“The network will be operated by independent Indexers who run nodes and process queries in an open marketplace,” explains The Graph’s Tegan Kline in the announcement. “Curators will be able to join the network to organize data and signal which subgraphs are useful and accurate.”
Given the recent rise of decentralized finance (DeFi) applications, The Graph appears well-positioned to become one of the premier service providers in the industry.
More: The Graph Raises $5M From Strategic Investors to Decentralize the Query Layer of DeFi and Web3
Similar: DeFi Gains Momentum Following Compound Token’s (COMP) Successful Launch
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.
