The Evolution of The Graph Protocol and What It Means for You
The Graph Protocol has completed two monumental shifts that redefine how blockchain data is accessed and utilized. With the migration from a hosted service to a fully decentralized network, and the transition from Layer 1 to Layer 2 now behind us, these changes mark a new era of scalability, efficiency, and decentralization.
But what do these transitions mean for you — the users, developers, and indexers who rely on The Graph every day? This blog dives into the practical implications of these advancements, exploring how they enhance your experience, improve performance, and solidify The Graph’s role as the foundation of web3.
Section 1: The Shift from Hosted Service to Decentralized Network
Why Move to Decentralization?
The hosted service was always a bootstrapping tool, never meant for the long term. While it helped The Graph ecosystem grow, its centralized nature came with limitations — scheduled maintenance, reliance on a single provider, and a single point of failure. It was a stepping stone to something stronger and more resilient: the decentralized network.
In the decentralized network, indexers around the globe ensure that if one goes offline, others step in to keep the system running smoothly. This eliminates downtime, strengthens reliability, and removes control from any one entity. Decentralization brings resilience, censorship resistance, and trust — ensuring data remains accessible, secure, and free from centralized control. It’s the backbone of web3 and the future of blockchain data services.
How It Works: The Decentralized Network
So, how does this decentralized network actually work? At a high level, it’s powered by a community of various roles, each playing a vital part in keeping things running smoothly. Indexers are like the librarians of the network, responsible for organizing and serving the data. Curators act as scouts, signaling the most valuable data for indexers to prioritize. Delegators don’t do the heavy lifting themselves, but lend their tokens to support indexers and share in the rewards. And then there are the consumers — the developers and dApps that query the network to access the data they need. Together, this ecosystem ensures that the network operates efficiently and fairly.
Benefits of the Shift
But what’s in it for everyone? The benefits of decentralization are huge. For one, the network becomes far more secure and reliable. With no single point of failure, it’s resilient against attacks and downtime. It also levels the playing field. Instead of relying on one central service provider, anyone can participate in and benefit from the network. This opens the door to innovation, as participants are incentivized to improve the system and compete to provide the best services. Decentralization isn’t just about technology — it’s about creating an ecosystem that’s inclusive and built to last.
What This Means for You
As the network transitions to decentralization, it’s essential for delegators and curators to take action. If your GRT is still on the Ethereum network, it’s likely sitting idle and not being used effectively. To stay active and benefit from the network’s growth, you’ll need to migrate your GRT to Arbitrum L2, where it can be put to work in the decentralized ecosystem. For developers, this shift also brings new tools and responsibilities. Paying per query is now the standard, with an average cost of $2 per 100,000 queries — though the first 100,000 queries each month are free. This model provides developers with more power and flexibility while promoting sustainable network usage.
https://thegraph.com/studio-pricing/
This move to decentralization isn’t just technical — it’s a leap toward greater transparency and fairness. Delegators and indexers gain new revenue opportunities (query fees), but competition is growing. For users, it means more trust, reliability, and even better performance, as studies show query success rates and latency have improved on the decentralized network. Now is the time to migrate your GRT, get involved, and embrace the possibilities of decentralization.
If you still have your GRT on Ethereum for delegating, curating, or hosting a subgraph, it’s time to migrate to Arbitrum. Without migrating, your GRT isn’t being utilized effectively and isn’t earning rewards. Jump into an official Graph channel today to discuss your options and take the necessary steps to migrate.
Section 2: The Transition from L1 to L2
Why Move to L2?
Layer 2 (L2) solutions offer a powerful upgrade for networks like The Graph, enabling faster and more cost-efficient operations while maintaining the security of Ethereum’s Layer 1 (L1). By processing transactions off-chain, L2 reduces costs and boosts scalability, making it ideal for The Graph’s high-volume query ecosystem.
For developers, this transition means lower fees, faster transaction times, and a smoother user experience. For the network, it ensures scalability and sustainability as web3 adoption grows, all while preserving the reliability and trust Ethereum is known for.
https://medium.com/media/23295643764e3bbce64dc8f2c9835a42/href
How It Works: Layer 2 Operations
So, how does L2 actually work, and why is it so effective? At its core, L2 solutions are built on top of Ethereum and handle most of the computational work off-chain. This reduces the load on the main Ethereum network and ensures transactions remain cost-efficient. L2 achieves this by bundling (or “rolling up”) multiple transactions into a single batch, which is then settled on Ethereum’s L1 for ultimate security.
The Graph has chosen to migrate its operations to Arbitrum, which is specifically optimized for scalability. This means that transaction batching, query fee payments, and other key processes will now happen on L2, reducing costs and improving performance. For indexers, curators, and developers, this results in faster operations and significant gas savings.
On L2, query fees — previously expensive and slow to process — are now handled with lightning-fast settlements. Payments are bundled together, allowing The Graph ecosystem to scale alongside Ethereum’s growing adoption. These advancements ensure The Graph’s decentralized network is now more efficient and scalable, ready to meet the needs of web3.
Section 3: The Combined Impact of Decentralization and L2
The Graph’s journey toward decentralization and its adoption of Layer 2 isn’t just about improving the protocol — it’s about building the foundation for the future of web3. These two shifts work hand in hand, creating a network that’s faster, cheaper, and more resilient. By combining decentralization’s trustless, global infrastructure with the scalability and cost-efficiency of L2, The Graph is now more accessible and powerful than ever.
A More Efficient and Accessible Graph
With these changes, The Graph delivers on its promise of making blockchain data accessible to everyone. Decentralization ensures the network is robust, censorship-resistant, and always available, while L2 enables faster and cheaper transactions. For developers, this means queries are processed quickly and at predictable costs, removing barriers to innovation. For indexers and delegators, it’s a more rewarding and efficient way to support the network. Together, these advancements set the stage for The Graph to scale alongside the growing demand for web3 services.
https://medium.com/media/48403230aa880ba6701f9ae7300c9b96/href
Challenges Along the Way
Developers may need time to adjust to the decentralized network and learn how query payments work on L2, while indexers and delegators must update their operations to align with Arbitrum. For indexers and delegators, the move to Arbitrum means updating how they manage stakes and operations. If your GRT is still sitting idle on Ethereum, now is the time to migrate and start earning again. The good news is that The Graph community is here to help, with guides and active support channels to make the transition seamless.
Building for the Future
These changes aren’t just about solving today’s challenges — they’re about preparing for tomorrow. With the scalability of L2 and the resilience of decentralization, The Graph is now positioned to handle the ever-growing demands of web3. This evolution creates opportunities for everyone involved, from developers building the next big dApp to participants supporting the network. As the ecosystem grows, so do the rewards for those who contribute to it.
By embracing decentralization and Layer 2, The Graph isn’t just scaling — it’s building a future-proof foundation for web3. Now is the time to migrate your GRT and embrace the next chapter of blockchain innovation with The Graph.
Do you have any questions?
Graphtronauts is the largest, unofficial community for long-term GRT holders who believe in The Graph’s web3 vision for the future. Our goal is to educate the broader crypto community and help them become contributing members within The Graph ecosystem.
If you have any questions, or concerns, or want to submit feedback, you can reach out to us using our social channels:
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From Centralized to Decentralized, From L1 to L2 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.