Blockchain Data Index The Graph Raises $2.5M USD In Seed Funding Led By Multicoin

Blockchain, Investing | January 29, 2019 By:

Blockchain startup The Graph has raised $2.5 million in a seed funding round led by Multicoin Capital, the crypto hedge fund founded in 2017 by Kyle Samani and Tushar Jain. The round also saw participation from Compound VC, CoinFund, DTC, Kilowatt, Reciprocal Ventures, SPC and others.

Founded in 2018, The Graph is building a protocol for building decentralized applications quickly on ethereum and peer-to-peer distributed file system IPFS using GraphQL, a query language developed and open-sourced by Facebook. The company claims that GraphQL provides a powerful API to get exactly the data needed in a single request, seamlessly traversing and combining data sources. The goal of The Graph’s platform is to enable developers to build the next wave of applications on a solid foundation.

In its announcement, Multicoin said that The Graph would be important for every app building on the Web3 stack, adding that it is solving a key technical problem of querying data out of the blockchain and re-introduces a layer of centralization.

“Virtually everyone in the web3 development community has come to recognize how important and underserved this layer of the web3 stack really is,” Kyle Samani said. “The Graph has emerged as the market leader, with dozens of teams using the service in closed beta right now. It provides an elegant query interface — so much so that many web2 companies are transitioning away from REST to GraphQL — and because it’s extremely flexible. Given the breadth of data stored across ethereum, IPFS, and other chains, this level of flexibility is essential.”

The Graph will be launching the 1.0 version of their service in the next few weeks. Later this year, it will launch a decentralized network that will allow developers to choose the right trust model for their applications.

“We couldn’t be more excited to support The Graph, and are looking forward to seeing all of the amazing applications that developers build on it,” Samani said. “The problems that The Graph is solving are immense and foundational to the future of web3.”