Covalent Governance Foundational Work: The Building Blocks of Covalent Query Token
Analyzing data is one of the most difficult yet essential needs of the crypto and global financial system at large. It is the process of inspecting, transforming, cleansing, and modeling data with the aim of sorting out vital information, enabling accurate conclusions, and supporting decision-making. In the business world today, data analysis plays a vital role in decision-making and helps businesses operate more effectively. Blockchain data analysis is one of the analytic branches that help better the global financial system.
Blockchain is a digital and decentralized public ledger with a system that records transactions across multiple computers connected by a peer-to-peer network. It was initially designed for digital assets such as Bitcoin and Ethereum, but in recent years, different businesses and industries have adopted the technology.
Modern businesses and industries have been benefiting from data analytics for several years now but they always hit a brick wall when it comes to collecting data from numerous sources and correlating them. This had led to much inaccurate information spread and business plans being hampered. There is also the question of whether there is enough supply of actual data. When there isn’t enough information for the system to draw conclusions from, prediction results may be skewed and inaccurate.
Blockchain data analysis arrived to save the day. With its possibility of connecting and recording information and transactions across multiple computers, it made it possible for businesses to collect and analyze any amount of information easily and more accurately.
As mentioned earlier, blockchain was initially created for cryptocurrency. It records numerous transactions done across multiple networks. However, collecting and analyzing this data collected becomes difficult with the increasing number of people and networks joining the crypto space.
Bitcoin met a worthy competitor in Ethereum and the latter blockchain has met its competitors and the list keeps growing. Collecting and analyzing data from all these networks is a difficult task and this is where Covalent comes in.
Covalent
The covalent project offers visibility to billions of blockchain data points through a unified API. It began in 2017 with the goal of increasing the transparency and visibility of blockchain networks and peaked their goals this year. It now has a unified data infrastructure that involves well-known blockchain and NFT initiatives like Ethereum, Binance, Polygon, etc.
Covalent aims to inspire tomorrow’s innovators by delivering the most comprehensive and powerful data infrastructure for the entire blockchain ecosystem.
It is building the most thorough blockchain dataset on the internet and making it available to developers with no specialized requirements. Instead of programmers spending excessive energy and resources creating a system for their project, they can easily use Covalent’s service instead.
The Covalent team is pushing the boundaries of standards with their work, having built a system that can transform all blockchain data into a unified API.
Their sophisticated API covers a wide range of use-cases, including wallets, exchanges, custodianship, and taxation, and does so with a codeless approach that requires no configuration.
Covalent’s technology removes many of the barriers that organizations face when it comes to utilizing blockchain in their businesses. There will be no more needless technological complexity, poor business connection, or unstructured data. There is also the provisioning feature of operational costs handled by the Covalent project; with this, businesses no longer have an excuse for not adopting blockchain technology. All they need to do is create a product, and all of the publicly available blockchain data can be easily integrated via a multi-functional API.
After going fully functional and making their project marketable, the Covalent project went into full decentralization mode by creating a governance token that will enable the network to be owned and operated by its users.
Covalent Query Token (CQT)
On June 22nd, 2021, the Covalent team announced on their social networks that they will be launching their governance token CQT. It is primarily a governance token, as such as it enables its holders to vote on various proposals to modify system parameters, such as additional data sources, data modeling requirements, etc. CQT can also be used for staking. The validators will be compensated for addressing queries, and they are also committed to CQT and to meeting the required service level agreements. Validators whose uptime is not maintained will have their tokens deducted. CQT incentives are given to network users, active community members, and CQT holders.
Key Features of Covalent
Creativity
Creativity is regarded as a key feature for DeFI implementations since it allows users to create financial solutions by assembling building ideas from other projects. Covalent’s massive multichain API enables developers to quickly build scalable and data-rich applications.
Data-Availability
Covalent is the only project that comprehensively indexes the entire blockchains. The infrastructure of Covalent is in charge of every transaction, wallet address, and contract in its ecosystem.
No-Code Solution
The multichain API is fully committed to providing clients and participants with no-code solutions. There is no need to spend money on costly and difficult SQL queries, no need to create and maintain subgraphs, and no need to hire highly trained engineers only to extract blockchain data, which may be a significant waste of engineering time. Clients will definitely be pleased with the availability of a single fast and secure API.
Multi-Blockchain Support
One of the features that make Covalent so unique is its multichain compatibility. The Covalent network is undoubtedly working with clients on more than 5 well-known blockchain networks at this moment.
Conclusion
Crypto, blockchain, and DeFi are rapidly expanding, and the demand to scale up is rapidly on the rise. Cryptocurrency users are quickly increasing all around the world, and the whole sector is rapidly becoming blockchain agnostic.
In such an environment, data analytics centered on a single blockchain is beneficial but is a shortcoming when it comes to building exceptional solutions.
Covalent solves this by offering meaningful and analyzing and collecting data from billions of data points using Big-Data technology.
Developers can use the Covalent API to obtain and transfer data in whichever format they choose, directly into their product. They can instantly get current and historical statistics for any address or product in the market.
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