The Covalent platform provides an application programming interface (API) that can be used across multiple blockchains. Powered by the native CQT token, Covalent Network is a decentralized data infrastructure layer of Web 3.0. Furthermore, Covalent boasts a range of compelling technologies for blockchain and Web3 development. This includes the unified Covalent API, the Covalent API key, and the Primer transformation engine. But, what is Covalent? Also, how does the platform work? Let’s go ahead and take a look!
In this article, we’re going to dive deep into the Covalent Network ecosystem. We’ll discuss the Covalent API, the Covalent API key, and the CQT token. Plus, we’ll look at some of the key technologies available through the Covalent platform and how they can optimize blockchain and Web3 development.
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What is Covalent?
Covalent is a multi-chain unified application programming interface (API) that brings visibility to billions of data points for multiple blockchains. As an indexing querying solution for blockchains, the platform offers a diverse range of actionable insights that enable developers to optimize the allocation of resources, bringing greater utility to decentralized applications (dApps) using a single, unified API.
Covalent collates millions of data points from over 100 organizations. Rather than searching for data from multiple locations on multiple blockchains, the network provides a one-stop-shop for high-quality multi-chain data.
This is made possible by aggregating various data feeds from nodes on different blockchains. The Covalent API then facilitates the distribution of customized data feeds to suit the individual needs of users. This data can be broad or specific, depending on the application. For example, the API can provide both the historical and current performance of digital assets. This could be for a small handful of assets or to analyze the entire crypto market. Plus, when data is requested, it is returned quickly in a uniform, consistent manner. Regardless of how many blockchains are queried, all relevant data is presented in a single API. The advantages of this cannot be understated. The more time blockchain developers can save, the more time they can allocate to blockchain and Web3 development and innovation.
Currently, the Covalent API is primarily used in decentralized finance (DeFi) and identity management. However, as the network expands and the enterprise adoption of blockchain continues to increase, the utility of the Covalent API could become present sector-wide.
Moreover, the platform enables developers to create API endpoints that they can sell on data marketplaces. The Covalent API enables developers to create new applications and augment existing applications without the need for configuration or making changes to existing infrastructures.
Covalent Query Token (CQT)
The native Covalent Query Token (CQT) has two primary use cases. Firstly, the CQT token is essential for protocol governance. The CQT token allows holders to vote on proposals to change the parameters of the protocol. Secondly, the CQT token is used for staking. Covalent validators stake the CQT token to secure the network and earn fees from answering and fulfilling API queries. Also, CQT token holders can delegate governance voting rights to validators. Furthermore, validators can charge a fee to delegates for voting on their behalf.
There were one billion CQT tokens minted at genesis, and the current circulating supply of CQT tokens is approximately 114 million. At the time of writing, the CQT token is trading at around $1.50, with a market cap of $170 million, according to CoinGecko.
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The project boasts various technical features to aid Web3 development. Below are some of the core technologies that underpin the Covalent Network and API.
By decoding and indexing blockchain data, the Covalent platform provides granular visibility of billions of data points. The Covalent API removes the tedious labor from Web3 development while providing an in-depth analysis of the entire blockchain ecosystem.
No Code Solution
The platform caters to both technical and non-technical users. Integration of the API requires zero code. Not only does this make Web3 development faster and more efficient, but it also lowers the barrier for adoption. There is no prerequisite for technical knowledge of blockchain data structures, and anyone can use the technology.
Unified API for Multiple Blockchains
One of the most compelling value propositions of the Covalent platform is that it provides a single API for several blockchains. This means that developers who are accustomed to the nuances of one blockchain can easily port data between chains. Currently, the Covalent API is compatible with seven different blockchains. Moreover, the project’s API increases efficiency in blockchain and Web3 development, dramatically reducing the time it takes to get a product to market.
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Primer Transformation Engine
Another handy feature of the Covalent platform is the native transformation language. Primer takes inspiration from the MongoDB query language. Furthermore, Primer enables developers to quickly and efficiently aggregate data in real-time in a way that is specific to their needs.
Enriched Decoded Data
The data provided by the Covalent API is extensively decoded and formatted to make it immediately available for blockchain and Web3 development. This reduces development time by removing the need for customized decoding or application binary interfaces (ABIs).
Decentralized Indexing-Querying Middleware
The platform also provides a “decentralized storage and compute layer”. This serves as a decentralized “indexing-querying middleware” with extremely high throughput and low transaction fees.
Covalent API Key
The free Covalent API key is a unique identifier for authenticating users. Users will need to create an account to access the free Covalent API key to use the API. Furthermore, the Covalent API key provides access to a wealth of resources and client libraries available via the Covalent platform. Also, analysts can use the Covalent API key in conjunction with Cryptosheets. Cryptosheets provides real-time data streams, a query builder, and a template generator.
One of the key value propositions of the Covalent API is its multi-chain functionality. Currently, the Covalent API supports the Ethereum, Polygon/Matic, Avalanche C-Chain, Binance Smart Chain (BSC), Fantom Opera, RSK, Arbitrum, and Palm mainnet networks.
Furthermore, the platform also supports several testnets. These include Polygon/Matic Mumbai, Fuji C-Chain, Moonbase Alpha, Fantom, RSK, Arbitrum, and Palm. Soon we can expect to see even more Covalent API integrations as the demand for blockchain interoperability increases. Among the networks in line for indexing include Moonbeam (Polkadot), Elrond, Near Protocol, and StarkWare.
In April 2021, Covalent announced upgrades to the platform. The Covalent Network is a “decentralized data infrastructure layer of Web 3.0” that aims to remove the single-point-of-failure that could pose a risk to the Covalent platform. Now, the network is a decentralized blockchain data API controlled by CQT token holders.
The newly decentralized Covalent Network serves as a global virtual cooperative for blockchain data. Also, the Network will use Moonbeam as a settlement layer, which is due to launch as a Polkadot parachain.
Covalent Block Explorer - CQTScan
CQTScan is the native block explorer of the Covalent Network and works in a similar way to Etherscan, the popular Ethereum block explorer. However, CQTScan enables users to gain valuable insights into datasets and data structures throughout the network. This includes block times, miner addresses, total blocks, and total transactions. Plus, CQTScan provides advanced cross-chain visibility for various data points on multiple assets.
Furthermore, CQTScan gives users an indication of the health of the network. This includes the total number of validators and the amount of CQT tokens staked. Future releases are to include additional insights into block production and API query performance.
Holders of the Covalent Query Token (CQT) can participate in protocol governance. This involves participating in governance discussions and voting on proposals to make changes to the Covalent platform.
Through this governance mechanism, the CQT token holder community can discuss and propose improvements and amendments to the development of network technologies. Plus, protocol governance provides a chance for the community to take part in meaningful discussions about the future direction of the platform.
Moreover, this governance mechanism is another step towards full decentralization of the Covalent Network, allowing community members to help direct the future of the Covalent platform.
Covalent Alchemist Ambassador Program
The Covalent Alchemist Ambassador Program extends the project community by bringing forward leaders in blockchain and Web3 development throughout the network ecosystem. The Covalent Alchemist Ambassador program aims to assist in the growth and development of the community while shaping data infrastructures of progressive technologies.
Covalent Alchemists are self-sufficient, autonomous team players who frequently display their commitment to the project. By doing this, the project aids in the support and growth of new Covalent technologies while providing the necessary coaching and tooling to help developers succeed.
What is Covalent and the CQT Token? Summary
The Covalent API is a game-changer for developers. As the demand for cross-chain interoperability increases, tools, and services that can save developers time and resources when building cross-chain applications are becoming extremely valuable.
Furthermore, the Covalent platform is an essential tool for the aggregation of cross-chain data streams and communications. Moreover, the API could change the way developers source datasets and help to optimize blockchain and Web3 development practices!
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