Multicoin reviews an investment in The Graph: Filling an important but empty market in The Web3 protocol stack query layer

Our Investment in The Graph

Source: Multicoin Capital 

This article was written in 2019 & NBSP; January 28 is NBSP; Multicoin Capital's review of previous investments.

Preface: Looking back at the articles of that time, the growth curve of today is clear at a glance:

I am honored to announce that Multicoin has led The $2.5 million seed round for The Graph project. We believe The Graph will be one of The most important protocols in The Web3 protocol stack. Before I introduce its vision, let me tell you something interesting. Yaniv first contacted me in February 2018. He contacted me out of the blue via DM (which is why I keep DM open).

Yaniv first contacted The Graph in February 2018 and Yaniv sent me a short seven-page document. The document eloquently explains The key technical problems that The Graph is addressing -- The difficulty of retrieving data from The blockchain, The reintroduction of a centralized layer -- and explains how The Graph solves this problem. During our first call, Yaniv showed me some demos, including some amazing demos -- in which The Graph USES GraphQL's Subscription (basically a pub/sub on Ethereum) to send a transaction to The Ethereum blockchain via a Metamask wallet on another computer, pushing The process to The browser in real time. I was immediately impressed by its elegance and speed.

As Yaniv explained The demo further, we quickly understood The Graph's importance to every application on The Web3 protocol stack. Shortly after, I flew to San Francisco and personally contacted Yaniv and his co-founder Brandon, promising to lead The Graph's seed round as soon as possible. Since then, co-founders Yaniv, Brandon, Jannis and The rest of The Graph team have taken it upon themselves to develop (if you've just been to Graph Day! https://medium.com/graphprotocol/the-graph-is-now-open-source-bab53cda6de3) of the world's open source software! By the time we first met, everyone in the Web3 development community had realized how important and blank the query layer of the Web3 protocol stack was. The Graph has become a leader in The field, with dozens of teams using their services for private testing.

Note: as of July 10, 2020, when this WeChat article is published, you can find it in The Graph  Choose to use The Graph  NBSP; NBSP; NBSP; website; Product dozens of team, including almost all of the world-class decentralized financial project: https://thegraph.com/explorer/

team

I've been working with The Graph team for almost a year now, and they've been very unique. First, they are excellent communicators. The value of clear communication skills cannot be overstated in a field full of dedicated consensus algorithm technologists. This point is clear from The first presentation file Yaniv sent me, and in The communication with The Graph, this advantage continues to emerge -- both in technical and non-technical aspects. In addition, they do a great job of execution: developing the product, recruiting, keeping track of the schedule, interacting with the community, and so on. Engineers, especially in encryption, are notoriously unreliable at keeping development schedules in check. In our first conference call, Yaniv said they would launch a limited beta service in the summer, and they did. I also want to highlight the Graph Day that they just had. From a community reception point of view, it was one of the best tech events of the year. The last thing I would point out is that they are very humble, have a strong belief in the power of Web3 and the products they are developing, and they are focused on making durable products.

Solve the bottleneck in the Web3 protocol stack & NBSP;

We spent a lot of time thinking about what value the Web3 protocol stack would bring, and we concluded that the query layer would capture a lot. There's no question that every team that's developed on Ethereum -- whether it's a centralized application like Etherscan or a decentralized application like Augur -- has the same problem: they need to query data from the Ethereum blockchain. So far, everyone has solved this problem by building a random, fragile, proprietary, centralized index server.

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But why can't developers look directly at An Ethereal client like Geth or Parity? They could, but Geth and Parity neither provide strong search capabilities nor scale large queries in any way. So far, every team that has developed on Ethereum has built a proprietary, centralized, fragile search capability. The Graph solves this problem by using GraphQL endpoints, using distributed, redundant, license-free networks, and providing developers with Ethereum and IPFS (along with other data sources over time). Why use GraphQL? Because it provides an elegant query interface -- so much so that many Web2 companies are moving from REST to GraphQL -- it's flexible. Given the dimensions stored in Ethereum, IPFS, and other blockchain data, this level of flexibility is essential.

So how important is querying the data?

While the Ethereum network records fewer than a million transactions a day, developers query Infura more than 10 billion times a day. Infura is a centralized key-value pair lookup service (it does not provide indexing and query services). Along with & have spent Web3 & have spent The growth of applications and consumers producing millions and billions of NBSP; Web3 & have spent As a result, use of The Graph will grow exponentially (see The foreword picture). Why would people want to run a Graph node as part of a decentralized network? In short: They get paid for it. The Graph will use a "working token" model, among other mechanisms, to let developers parameterize The data they want The Graph to index.

Develop a world-class query layer & NBSP;

The Graph team has just held Graph Day and will release version 1.0 of The query service in The next few weeks. Later this year, they will launch a decentralized network that will allow developers to choose the right trust model for their applications. We're excited to support The Graph and look forward to seeing developers build amazing applications on it. The problem that The Graph addresses is enormous, and it's also NBSP; Web3 & have spent On the basis of.

The original address: https://mp.weixin.qq.com/s/YEjjriPKaP4C-nhGgT80DA

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