Covalent (CQT) is a blockchain data indexer / oracle for many decentralized networks. They provide a unified API for a wide range of DApp uses. “Unified” means their one API works across all the blockchains they support.
Covalent Price:
It’s a good idea to go to the source of CQT information, especially if you want to invest. Get a feel for their efforts and community. It’s vital to dive deep when researching cryptocurrencies. Learning about the team, community, and tokenomics behind a coin reduces your chances of getting scammed. Get in the habit of study!
Important Covalent Links:
They are a competitor to The Graph (GRT). Covalent’s difference is that they use simple REST endpoints instead of the more complicated Graph / subgraph route.
Web3 data indexers like these are commonly called “oracles”. They are a vital service for DApps since it’s tough to directly pull data from a blockchain network. For an individual to do it, they need to create a node and save the data into a database.
These oracles save (index) the transaction data from chains that can be quickly accessed by apps or DApps through an API. Covalent was started by data professionals Ganesh Swami, Levi Aul, and Abhishek Bhargava.
Covalent Features and Numbers (Jun 2023):
- Data is indexed from 40 blockchains including Ethereum, Polygon, Avalanche, and Binance
- Over 200,000 smart contracts interactions
- Powers over 3,000 apps through the Covalent API
- Scrapes real time data ASAP for fast decision making by the users.
- The Covalent team is working on API encryption (cryptographically secure) for sensitive blockchain data use cases too.
Covalent Query Token (CQT) Details
CQT is a Proof-of-Stake (PoS) governance token that powers the Covalent data network. CQT also incentivizes the building of DApps for Covalent’s marketplace. They have a max supply of 1,000,000,000 and a circulating supply of over 570,000,000 (Jun ’23).
Their token is also used in governance. CQT holders get to vote for changes in their network.
The Data Alchemist Training
Covalent also offers a four week Web3 data bootcamp. It is a gamified community of students. You will learn to work with SQL, grow Web3 skills, and build your own network.
Here is Covalent’s short marketing video that gives a broad overview of their project:
Conclusion for Covalent Indexer
This crypto project has made impressive progress towards a simple and fast Web3 data API, but their CEO admits there is a long way to go in the space. Their explosive growth and education program may fuel their continued success.
Of course, a price prediction is impossible. They had a big run up in price, then a crash, but that is common to most cryptocurrencies. If they can keep things simple for Web3 developers to use and continue to serve more blockchain networks, the sky is the the limit for them.
The simplicity of thier API and large numbers of blockchains puts them at the head of Web3 data oracles, in my opinion. They are one to keep on your watchlist.