The Graph Migrates its Settlement Layer to Arbitrum from Ethereum

The transition is aimed at reducing barriers of entry for The Graph’s users by decreasing gas costs and speeding up transactions.

AccessTimeIconJun 14, 2023 at 4:00 p.m. UTC
Updated Jun 15, 2023 at 3:24 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Graph – a decentralized protocol for indexing and querying blockchain data – began on Wednesday the final phase of its migration from Ethereum to the layer 2 scaling solution Arbitrum.

With the migration, The Graph becomes one of the largest Ethereum apps to transition to a layer 2 rollup – a move that one of The Graph developers Edge & Node say will decrease barriers of entry for The Graph’s participants without compromising on security.

The Graph, through its web of “delegators” and “indexers,” allows web3 developers to view blockchain data without trusting centralized intermediaries for the data’s accuracy. Launched initially on Ethereum, its move to layer 2 platform Arbitrum is an effort to decrease gas costs and increase transaction speeds, according to Edge & Node CEO Tegan Kline.

Arbitrum, like other Ethereum layer 2 networks, operates as a separate blockchain that runs alongside Ethereum. To reduce fees for users without losing all of Ethereum’s security guarantees, Arbitrum bundles up large groups of transactions and then passes them back down to Ethereum for all-at-once settlement.

The Graph’s migration involves transferring its “settlement layer” from one network to another – rather than recording and settling activity directly on Ethereum, The Graph will now settle transactions on Arbitrum.

Every time a user performs a transaction on The Graph like delegating and indexing, there is a cost to it. “With this transfer to Artbitrum, those costs are lower. So we expect that there 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,” Kline told CoinDesk.

GRT and ARB, the native tokens for The Graph and Arbitrum, have both remained stable in the past 24 hours amid The Graph’s transition to Arbitrum. GRT has ranged between as high as 9.9 cents and as low as 9.7 cents, while ARB has oscillated between 97 cents and $1.01, per CoinDesk data.

The Graph enables developers to query data from 40 networks and raised $50 million in a 2022 funding round, which saw participation from Tiger Global, Blockwall Digital, Fenbushi Capital, FinTech Collective and Reciprocal Ventures.

Edited by Sam Kessler.

CORRECTION (June 14, 2023, 18:23 UTC): Specifies in the piece's first sentence that the final stage of The Graph's migration started Wednesday. The original article stated that the migration itself started on Wednesday.

CORRECTION (June 15, 2023 15:32 UTC): Corrects the price for GRT on Wednesday.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Sage D. Young

Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.