The Graph, a decentralized protocol for indexing and querying blockchain data, has begun the final phase of its migration from Ethereum to layer 2 scaling solution Arbitrum. According to Edge & Node CEO Tegan Kline, the move is intended to decrease barriers of entry for The Graph’s participants without compromising on security.
Arbitrum operates as a separate blockchain that runs alongside Ethereum, bundling up large groups of transactions and then passing them back down to Ethereum for all-at-once settlement. This process reduces fees for users without sacrificing Ethereum’s security guarantees.
The Graph’s migration involves transferring its settlement layer from Ethereum to Arbitrum. Kline explained that this will likely be more indexers that spin up on the network [and] more delegators that get involved because that barrier to entry is lower, the cost isn’t so high.
The Graph’s native token GRT and Arbitrum’s native token ARB have both remained stable in the past 24 hours. GRT has ranged between 99 cents and 97 cents, while ARB has oscillated between 97 cents and $1.01.
The Graph raised $50 million in a 2022 funding round, which saw participation from Tiger Global, Blockwall Digital, Fenbushi Capital, FinTech Collective, and Reciprocal Ventures.