Multicoin Capital leads blockchain startup The Graph’s $2.5M seed round

Multicoin Capital, a cryptofund that invests long term in tokens, has led a $2.5 million seed round in The Graph -- a company that is working to simplify gathering data from public blockchains, CoinDesk reported.

The round also drew support from Compound VC, CoinFund, DTC, Kilowatt, Reciprocal Ventures, SPC and others.

In an announcement dated January 28, Multicoin said:

“The Graph is going to be one of the most important protocols in the Web3 stack.”

Founded in 2018, The Graph aims to make it easy to get data off blockchains and storage networks. It is developing open source software that indexes information, allowing it to be quickly accessed by anyone building decentralized applications.

Multicoin partner Kyle Samani said that The Graph is solving a key technical problem of querying data out of the blockchain and re-introduces a layer of centralization. According to the blog post, The Graph project lead Yaniv shared a few demos with Samani explaining how they intend to solve this problem.

“I was immediately impressed with the elegance and the speed. As Yaniv expanded on that demo, it quickly became clear how important The Graph would be for every app building on the Web3 stack,” Samani wrote.

The Graph uses GraphQL, a query language developed and open-sourced by Facebook. It provides a powerful API to get exactly the data one needs in a single request, seamlessly traversing and combining data sources.

The Graph team is “launching the 1.0 version of their service in the next few weeks. Later this year, they’ll launch a decentralized network, allowing developers to choose the right trust model for their applications,” Samani added.