Covalent Governance: How CQT Community Can Build a Developers Hub to Share Technical Ideas
The blockchain is a modern revolutionary technology that uses a “distributed ledger system” for its operations. It’s a security-focused decentralized network innovation. On a blockchain, every transaction is stored in separate blocks, which are then linked together to form a chain; which came about the term “blockchain”.
Transactions on a blockchain are recorded in a tamper-proof manner. Any additions or modifications to data are recorded with an immutable time stamp. The Blockchain is significantly more secure and data security is ensured due to the high level of transparency in the system.
Blockchain and Big Data
Big data refers to the collection of vast datasets. In businesses, traditional data processing systems find it difficult to process this data because it’s so vast and complicated. These data sets can be utilized to predict market trends and behavioral patterns and hence are very essential. To capture and keep all of this information, many businesses adopt cloud-based online storage which may be rather costly. This is where blockchain comes in to remedy the situation.
Blockchain has the potential to be a valuable tool for storing data online. Also, the decentralized network could provide access to a large number of people. It is easy to retrieve data on a blockchain since all the information is recorded on it. Users can easily view past transactions due to the nature of Blockchain technology and it is also simple to trace the sources of a transaction.
Furthermore, companies could be able to save costs by storing Big Data using Blockchain technology. Blockchain has the capacity to store enormous volumes of data for lengthy periods of time. With the usage of Blockchain, businesses can store any amount of data on a decentralized network system.
Covalent
Covalent is one of the very rare platforms that are taking the data cases to a whole new different and worldly level. Big data technologies are enabling organizations to develop at a faster rate than ever before and Covalent is an excellent example of how to capitalize on this development and take it up a notch.
Covalent is a unified API that offers exposure to billions of blockchain data points. Covalent uses big-data technologies to extract meaning from billions of data points, providing investors with relevant information and helping developers to aim higher in their organizations. Covalent combines information from hundreds of sources, including chains, nodes and data feeds, rather than manually and laboriously gathering data from a small number of chains.
Aside from being massive, blockchain data is not available in an organized format. It is pointless to try to extract useful information from it using conventional asset management technologies. The work gets much more difficult because these technologies are not based on scalable infrastructure, resulting in logistical issues such as:
- The more the blockchain platform grows in size, the more average data analysis becomes harder and resource-intensive.
- Inaccurately evaluating complex crypto investments like staking and impermanent loss accounting.
With covalent, developers no longer need to rely on aggregated price feeds to provide their users with precise investment data. There is no longer a need to spend time and money collecting and classifying data directly from the blockchain.
Covalent’s innovation eliminates many of the barriers that organizations face towards embracing blockchain. There will be no more needless technical complexity, poor business connection, or unstructured data. There is no more reason for enterprises to avoid creating blockchain services as Covalent has already covered the majority of the expenses.
All they need to do is create a product, and all of the available blockchain data can be easily integrated through a unified API.
Covalent Query Token (CQT)
CQT is the covalent’s platform utility token, and it is essentially a proof-of-stake governance token that powers Covalent’s extensive and strong network. Furthermore, the token enables the construction of blockchain data applications in Covalent’s huge marketplace, facilitating the democratization of multichain technology.
CQT is primarily a governance token, therefore its holders can vote on various proposals to modify system parameters, like additional data sources, particular geolocations, and data modeling requirements. The validators on Covalent will be compensated for addressing queries, and they are also committed to CQT and to meeting the minimum service level terms and conditions. Validators whose service is not maintained will have their tokens decreased. CQT incentives are given to network users, active community members, and/or CQT holders. It can also be used for staking.
Conclusion
Covalent has the ultimate goal of increasing the visibility and transparency of blockchain networks. It now has a unified data infrastructure, such as the major blockchain and NFT projects; Ethereum, Polygon, Binance, etc. What Covalent offers is the ability to examine and access all blockchain data in one location.
Crypto, blockchain, and DeFi are rapidly expanding, and the demand to scale up is rising in tandem. The number of cryptocurrency users is quickly increasing throughout the world, and the whole sector is rapidly becoming blockchain agnostic.
In this case, data analytics centered on a single blockchain is beneficial, but a lot more is required to develop exceptional solutions; not only data sharing as it is generated and assessed by the community but an organized and standardized approach to blockchain data.
Covalent is laying the groundwork for a future data source and this can be witnessed by the magnificent progress the project has made ever since its inception.
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