Unified application programming interface network Covalent has launched to bring a decentralized data infrastructure layer to Web 3.0.
In an announcement on April 29, the Covalent Network stated that it has gone live to provide a leading indexing query solution for blockchains and data networks. The network leverages big-data technology to create meaning from hundreds of billions of data points, aggregating information from across dozens of sources including nodes, chains, and data feeds.
The blog post added that the launch will gradually move the platform beyond a centralized data API and into a virtual global co-operative for blockchain data, governed by its CQT token.
Covalent already claims over 100 customers and several blockchains indexed including Ethereum, Binance Smart Chain, Polkadot, Polygon, Avalanche, Elrond, and Fantom.
Big decentralization drive
The current Covalent API is backed by terabytes of data and can be considered a single point of failure, the blog post explained.
“This launch moves the platform beyond a centralized blockchain data API, enabling token holders and developers to engage with the network in new ways. All while eradicating the limitations of centralization.”
The network will be using the Moonbeam blockchain as the settlement layer which is currently getting ready to launch as a parachain on Polkadot. Its transition to decentralization includes a Covalent Query Token (CQT) which will act as governance and allow holders to propose, vote on, and make changes to the parameters of the network.
A component of the decentralized network launch is the visibility and health of the network which can now be accessed through the new Covalent Network Block Explorer called CQTScan, which it compares to Etherscan.
Developers can use the Covalent API to pull data from various blockchains with full transparency and a no code solution. DeFi platforms and wallets such as Zerion use Covalent for their multi-blockchain strategy to show balances and positions across Polygon and Binance Smart Chain.
At the time of writing, the CQT token was not tradable on major exchanges. There will be a billion of them as a maximum supply and staking will also be available on the network with yields ranging from 3%-20%.
Because it heavily ventures capital-backed, around half of these tokens went at private sales, to the team, and advisors. Almost 20% will be allocated to a reserve, 20% to the ecosystem, and just 8% for staking rewards so it is pretty much a closed loop of governance.