The Graph Unveils Scalar: Microtransactions Revolutionize Blockchain Data Monetization

The Graph has introduced Scalar, a microtransaction system that allows node operators and data providers to monetize their services. Scalar uses state channels to aggregate and compress transactions, improving scalability and reducing costs. This innovation enables developers to create decentralized applications that require real-time data without relying on paywalls or advertisements. The Graph supports major blockchains and DeFi projects, and has seen significant growth in its hosted service, processing over 600 million queries per day in March.

The Graph Unveils Scalar, a Microtransaction System for Blockchain Data Monetization

Introduction

The Graph, a prominent indexing and query layer for decentralized applications (dapps), has introduced Scalar, a microtransaction system designed to revolutionize the monetization landscape for node operators and data providers on its platform.

The Graph: Bridging the Blockchain Divide

The Graph serves as a crucial intermediary between dapps and various blockchains, providing a robust data querying platform that enables efficient data access for blockchain projects and applications. The platform's innovative architecture allows developers to package queries into "subgraphs," tailored data feeds that provide API-based data for use by blockchains and dapps.

Supporting a Thriving Blockchain Ecosystem

The Graph's extensive ecosystem encompasses a diverse range of decentralized finance (DeFi) projects, including Uniswap, Synthetix, and Aave, as well as leading blockchains such as Polkadot, Solana, NEAR, and CELO. The platform's native token, GRT, further solidifies its position within the blockchain landscape.

The Need for Microtransactions

The Graph Foundation recognized the increasing need for a microtransactions infrastructure to support the growing volume of transactions on its network. "Scalar empowers node operators to generate revenue through query fees paid in GRT, while data providers can receive direct compensation for sharing valuable data with apps, eliminating the reliance on paywalls or advertising," the Foundation stated.

Scalability through State Channels

In collaboration with software developer Edge & Node and Connext, a peer-to-peer cross-chain liquidity network specializing in microtransactions, The Graph Foundation co-developed Scalar. This solution leverages state channels, which facilitate direct user interactions outside the blockchain, to aggregate and compress transactions before their finalization on-chain.

Pioneering State Channels

"Within The Graph ecosystem, we explored state channels over two years ago, despite skepticism from others," said Tegan Kline, co-founder and business lead at Edge & Node. "We persevered in our research and development, and Scalar represents a significant advancement in infrastructure for the decentralized applications space."

Handling Billions of Queries

"Scalar's introduction marks the first broad-scale application of state channels," added Kline. "It will serve as a cornerstone for The Graph's infrastructure, enabling us to handle the billions of queries processed on our hosted service and decentralized network."

Explosive Growth

The Graph's hosted service processed over 600 million queries daily in March, totaling more than 19 billion queries for the month. "We have witnessed over 100x growth in our hosted service," said Kline. "The March query volume reflects the exponential growth in Ethereum and other supported blockchains."

Conclusion

The launch of Scalar by The Graph is a transformative development for the blockchain data economy. This microtransaction system empowers node operators and data providers to monetize their contributions, while also providing developers with a scalable and cost-effective solution for accessing blockchain data. As the demand for decentralized applications and blockchain-based solutions continues to soar, Scalar is poised to play a pivotal role in shaping the future of blockchain data monetization.