When a cryptocurrency begins amassing hype, many want to know how and why.
Recently, The Graph has seen major price hikes along with other AI-focused cryptos.
What Is The Graph?
The Graph is an open-sourced software built on theEthereum blockchain.
Overall, The Graph aims to make blockchain data more easily accessible.
The Graph was founded in 2018 by Brandon Ramirez, Yaniv Tal, and Jannis Pohlmann.
DApps designed to work with The Graph are written in GraphQL, a programming language originally developed by Facebook.
But how does The Graph work?
Indexing blockchain data is by no means a quick task.
However, The Graph protocol solves this problem by providing efficient data querying for blockchain platforms.
Then there are Delegators who provide GRT as payment to Indexers as part of The Graph’s reward system.
The Graph protocol is entirely decentralized, meaning data and power across the project are spread among nodes.
Because of its decentralized nature, The Graph also has agovernance mechanism.
These users must follow the decentralized governance protocol when voting on internet changes, which keeps the system fair.
But what is the purpose of this token, and why is it amassing so much hype?
What Is The Graph’s AI GRT Token?
The Graph’s AI GRT token was first launched in late 2020, along with the mainnet.
On January 20, 2022, one GRT token held a value of $0.0841.
At one point, GRT even reached a price of $0.228, but this peak was short-lived.
There are currently 8.8 billion GRT in circulation.
What Does The Graph’s GRT Token Do?
But why are people investing in GRT?
Does this token have a specific utility, or is this a buy-low-sell-high scenario?
GRT has utility within The Graph’s ecosystem, mainly in fee payments.
Within The Graph’s ecosystem, fees are charged for queries.
Why Is GRT’s Price Increasing?
But GRT’s growth isn’t all down to its utility.
People are also increasingly leaning towards decentralized platforms, as they offer transparency over centralized services.
Time will tell how GRT goes on to perform in the long run.
