Web 3.0 deserves a Web 3.0 data access protocol
Evolving Web 3.0 with The Graph
Data access technologies such as databases, search engines or query APIs are so ubiquitous that we barely think about them when architecting software solutions. As Web 3.0, decentralised applications powered by blockchain technologies evolve, infrastructure blocks such as data access will become more relevant.
The Graph is a decentralised protocol that enables the indexing and querying of data via ‘subgraphs’. The Graph optimises data acquisition from any supported source, beginning with the Ethereum (a global, open-source platform for decentralised applications) ecosystem, making it possible to efficiently query blockchain data without relying on centralised service providers.
Think of it as the decentralised ‘Google’ for the intersection of Blockchain + The Internet (otherwise known as Web 3.0)
A robust Web 3.0 data access protocol requires certain capabilities:
1. Ability to access data (as if it were stored centrally)
2. Ability to query records based on their necessary attributes
3. Ability to efficiently navigate the blockchain data by specific criteria
4. Decentralised operation/governance
While some of these challenges have been solved by isolated technologies, we’ve had to wait for The Graph to put deliver on all these capabilities in a single stack/protocol.
What kinds of data and applications are moving to Web 3.0?
To be able to foresee the future of Web 3.0 it’s important to recognise the categories data and applications that are catalysing the shift to Web 3.0.
For a reference point for this topic we need look no further than the decentralised Web 3.0 project registry known as Everest. A quick analysis of the categorisation of its projects highlights some clear leaders, amongst the decentralised applications (DApps) being built.
With 50% of the projects/application currently listed being recognised in the Decentralised Finance (DeFi) category the near term goal is clearly focused on an extensive reimagining of centralised finance services and solutions.
Already we can appreciate the value owing to new found decentralised solutions such as ‘Flash Loans’ (uncollateralised loans, executing and settling in the same transaction) and their impact in capital arbitrage across markets. In the example provided below this transaction relies on a composability of a number of decentralised applications (DApps) such as AAVE, MakerDAO and Uniswap. All of these DApps provide ‘subgraphs’ for public consumption from The Graph to enable this and many other use cases for composability within decentralised finance (DeFi).
While DeFi remains dominant at present, the top six categories for Web 3.0 DApps also includes: Business Services, Entertainment, Asset Management, Governance and Marketplaces (in that order).
What type of data should be indexed on The Graph?
Up to 10% of global GDP could be stored on blockchains by 2025, according to the World Economic Forum
This is likely to include data types from product identifiers, medical records to land registries, academic degrees and insurance contracts.
Future businesses will benefit from more predictable and fruitful revenue cycles, thanks to a trusted Web 3.0 data ecosystem (enabled in part by The Graph) and reduced risk to transaction fraud.
As Web 3.0 promises no less than the the technological backbone of the 21st century’s renaissance of the social commons, giving back power to the people, we can expect to see the types of data indexed by The Graph to grow exponentially with the growth in adoption of Web 3.0 — Imagine the possibilities by 2050 when not 10%, but 50% of global GDP is on blockchain.
How do I see The Graph protocol and subgraphs evolving in the future?
My thoughts fall into three main areas:
- Market/Brand Awareness in respect of developer mindshare — to remain at the forefront of the Web 3.0 data access, consistent investment in community/brand building will be required. This will ensure developers remain current on the benefits of leveraging The Graph as a data commons over building/maintaining their own data indexing solutions.
- Scalability in respect of technical implementations — as I expect we will move into a multi chain Web 3.0 world, The Graph will need to extend its public utility / social common across other emerging blockchain solutions (ie. Tezos, Polkadot …) to meet the definition of the Web 3.0 data access protocol
- Scalability in respect of the technical capacity/throughput — as demand increases The Graph network will need to scale to continue to meet its success as a high demand public utility / social common
Assuming The Graph can achieve success with these three key areas of focus, it is my belief that they will generate a self perpetuating fly wheel of value generation for developers, token holders and the broader Web 3.0 ecosystem.
Conclusion
The Graph has captured the imagination of a community of Web 3.0 developers, Indexers, Curators and enthusiasts alike. The vision for Web 3.0 is intertwined with the solution of a Web 3.0 data access protocol such as is defined by The Graph. There is decentralised future is looking bright.
Additional References
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