For those unfamiliar, The Graph (GRT) is a cryptocurrency on the Ethereum blockchain that powers The Graph, a decentralized protocol for organizing and searching data from blockchain networks such as Ethereum and Filecoin.
The Graph functions similarly to how Google indexes the internet by organizing blockchain data into subgraphs, public APIs that anyone can use to access information about specific aspects of the entire data set.
This allows for more efficient and decentralized access to blockchain data without centralized servers or intermediaries. Using The Graph, developers can easily build decentralized applications and access the data they need from the blockchain without having to manage their own infrastructure or deal with the technical complexity of directly querying the blockchain.
Additionally, The Graph helps to improve the scalability of decentralized applications by reducing the load on the blockchain and offloading it to the indexing protocol. Overall, The Graph offers a crucial infrastructure for the decentralized web, enabling developers to build more powerful and user-friendly decentralized applications.
Before deciding whether staking GET on a centralized exchange like Binance or on a decentralized platform is best, it is important to first understand how to stake GRT. However, even before getting into the staking process, one must have a basic knowledge of The Graph network and its token GRT. The reason behind supporting the project by staking should also be clear.
What is the Graph (GRT) Token?
The objective of the Graph Protocol is to arrange decentralized blockchain data in an organized manner. Using indexing, users can access comprehensive information from various blockchain networks such as Ethereum and IPFS.
The platform is aimed at helping developers build decentralized applications that operate solely on public infrastructure. The network consists of four types of participants: indexers, curators, delegators, and consumers.
The first three participants offer services and contribute to network operations, while consumers use the dApp and request information.
The Graph protocol provides a solution to the problem of data accessibility and scalability in decentralized systems. By creating a centralized index of decentralized data, the platform enables developers to build faster and more efficient dApps that can handle large amounts of data.
The network incentivizes participation by rewarding indexers, curators, and delegators for their services and contributions to the network. This, in turn, ensures the stability and growth of the network, making it a reliable source of information for consumers.
The Graph protocol aims to create a seamless and efficient decentralized ecosystem where data can be easily accessible, organized and utilized.
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What is a Delegator?
In The Graph ecosystem, there are various roles you can assume based on your preferences, abilities, and the level of risk you’re willing to take. While I won’t delve into all the roles, I’ll concentrate specifically on the role of Delegator.
Being a Delegator requires no technical expertise, and there is no need to be concerned. It is a secure investment with minimal risk. To get started, you need to have a cryptocurrency wallet (such as MetaMask) and purchase some GRT tokens, which you then stake in the network.
As a Delegator, your role is to support the network by holding a certain amount of GRT tokens in your Wallet. This acts as a form of collateral, helping to ensure the stability and security of the network. In return for your support, you earn a portion of the network’s rewards, including GRT tokens, transaction fees, and other benefits.
By delegating, you are contributing to the decentralization of the network and helping to keep it running smoothly. It is a passive way to participate in the ecosystem and earn rewards without actively maintaining or managing any infrastructure.
A Delegator is an individual who stakes their GRT tokens in The Graph network, earning passive returns ranging from approximately 8% to 15% annual percentage yield (APY). If you want to learn more, you can check out The Graph Academy, which serves as the educational centre for The Graph ecosystem. Information about a Delegator can be found in the Delegator Hub section.
Selecting a Delegator: Considerations
- Are the validator, node operator, and service provider equipped with secure physical infrastructure to support the operation of the next-generation blockchain?
- Do they also offer non-custodial staking services for Proof of Stake token holders?
- Is the network decentralized and powered by a BFT consensus algorithm based on Proof of Stake?
- Does it have a multi-cloud staking infrastructure in place?
- What are the Staking Rewards in comparison to the Staking Fees?
Staking and Holding your GRT Tokens
GRT may be staked on the Graph, a proof-of-stake (PoS) blockchain, to earn rewards. This approach’s complexity and sophisticated nature necessitate accessing The Graph blockchain via a wallet.
Staking GRT on the Graph is a way to earn rewards by participating in the consensus mechanism of the proof-of-stake blockchain. However, because this process is complex and requires a certain level of sophistication, accessing the Graph blockchain through a wallet is necessary to take advantage of this opportunity.
A Guide to Staking GRT in Simple Steps
The process of staking Graph (GRT) tokens consists of two main stages:
- Transfer GRT to MetaMask
- Stake the token in MetaMask
Use The Graph Staking UI to Stake the Token. To get started, move your GRT tokens from your exchange account to your MetaMask Wallet. This step can be skipped if you already have GRT tokens in your MetaMask Wallet.
Transferring GRT Tokens
If you have GRT tokens in your exchange account and want to move them to your MetaMask Wallet, as previously mentioned, you need to get the public address of your MetaMask Wallet.
Log in to your exchange account and select the GRT token you want to transfer. In the section for the recipient address, enter your MetaMask Wallet’s public address and complete the transaction.
Add GRT to your MetaMask Wallet
To use the GRT token for the first time, you need to add it to your MetaMask Wallet. This is done by entering the contract address, which is 0xc944e90c64b2c07662a292be6244bdf05cda44a7, into the Custom Token tab. Once you have entered the token address, the GRT token will appear in your Wallet, as shown in the screenshot.
Staking GRT through the Graph Staking User Interface
Indexers are responsible for overseeing the operation and protection of the network from protocol nodes. Suppose a GRT token holder wishes to participate in network activities without running a node. In that case, they can assign their token to an indexer, who will receive a portion of the rewards in return.
Users can use the Graph staking user interface (the Network Beta decentralized application) to assign their tokens.
Visit the Network Beta decentralized application (dApp) to participate in staking. Access to the dApp can be gained through either MetaMask or WalletConnect.
Connect your preferred Wallet, such as MetaMask, to the dApp. The accompanying screenshot demonstrates the wallet connection, which displays the GRT tokens stored in the Wallet.
Advantages of Holding GRT Tokens in a Staking Position
- GRT has shown better results compared to its initial token sale price.
- GRT has a large market capitalization, providing high liquidity.
- Staking GRT on Binance is a secure and straightforward process.
- Staking on Metamask offers transparency and accessibility to everyone.
Staking is a creative approach for strengthening the Proof-of-Stake (PoS) network. The Delegator and the node operator, known as indexers, benefit from this setup. Indexers will receive additional incentives for providing good service to their delegators, which enhances the network’s security and stability and drives the project’s growth.
The rewards from GRT staking depend on the price of GRT. If the GRT price decreases during the staking process, your overall value may be lower than when you started. However, if the price increases in the future, you will have a larger number of GRT tokens.
As always, it is important to conduct thorough research and only invest funds not needed for essential expenses.