> For the complete documentation index, see [llms.txt](https://www.digitalnations.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.digitalnations.xyz/web3-overview/the-web3-ecosystem/defi/defi-infrastructure/data-aggregators.md).

# Data Aggregators

## **What is Data Aggregation?**

Like a blockchain-based version of Google, data aggregators use a process called indexing to make it easy for developers and users to quickly search a blockchain for important data.&#x20;

Indexing is method of organizing information to make data easier to find.  As the name implies, it’s very similar to the index at the end of a book – instead of going through every page in a book, the index allows us to quickly scan an alphabetical list to find the page number of the information we need. &#x20;

Google became a multi-trillion dollar company by mastering the art of indexing, and when it comes to blockchains, the process will be just as important.&#x20;

Unfortunately, there are two main problems with current indexing strategies:

* It can be very time consuming and redundant for blockchains to do it themselves
* Many existing aggregators are centralized

So how do we solve this problem in a decentralized manner?  One possible solution comes through a protocol called The Graph.&#x20;

## **How do Data Aggregators Work?**&#x20;

While the project is sometimes called the “Google for blockchains”, a better way to think about The Graph is as a decentralized network of thousands of Googles.&#x20;

Created by Yaniv Tal the project is an open-source, fully-decentralized indexing protocol for blockchain data.&#x20;

There are several key players in The Graph’s ecosystem:

* **Consumers:**  The end-users of The Graph that initiate search requests and pay fees to the Indexers
* **Indexers:**  These are the “workhorses” of the network that provide indexing services in exchange for a fee.  Indexers are independent providers that operate in a decentralized marketplace known as the Query Market.  To incentivize proper behavior, indexers must stake GRT (The Graph’s native token) tokens as collateral.&#x20;
* **Delegators:**  Loan GRT to indexers to stake and receive a portion of the profits

<figure><img src="/files/JAtjaxW9Tht7SBxG1CxG" alt=""><figcaption><p>Source:  <a href="https://thegraph.com/blog/the-graph-grt-token-economics">The Graph</a></p></figcaption></figure>

In addition to the above, the network also hosts curators, who find promising networks to index and fisherman and arbitrators, which serve as a form of quality control.&#x20;

The Graph has achieved significant traction since its launch:

* Developers have built over 25,000 subgraphs indexing a variety of networks such as Arbitrium, Avalanche, Celo, Ethereum, Fantom and IPFS, and this figure is growing at 10% to 15% monthly.&#x20;
* It is used by several major DeFi projects including Uniswap, Aave, Balancer and Synthetix
* Over 20 billion queries per month were performed in April, 20x more than the previous year and roughly 10% to 15% of Google’s \~150 billion searches per month.

<figure><img src="/files/4zUQ9CEvIjnZmK4F7i0U" alt=""><figcaption><p>Source:  <a href="https://thegraph.com/blog/the-graph-grt-token-economics">The Graph</a></p></figcaption></figure>

## **Who are the Key Players in the Data Aggregation Market?**

While The Graph currently dominates decentralized data aggregation, its biggest competition still comes from centralized providers such as Scout, BigChainDB, Dune Analytics and Google’s BigQuery.&#x20;
