What is Covalent?

Covalent is a leading modular data infrastructure layer and blockchain data platform that simplifies access to complex blockchain information. It consolidates data from multiple blockchains, processes it for accuracy, and delivers it through a unified application programming interface (API), empowering developers to build innovative applications with ease.

What does Covalent solve?

Covalent addresses the challenges associated with accessing and utilizing blockchain data. It simplifies the process by providing a unified multi-chain platform to access and analyze blockchain data. By aggregating data from multiple blockchains and standardizing it into a user-friendly format, Covalent enables developers and analysts to extract valuable insights without dealing with the complexities of raw data.

How does Covalent work?

Covalent functions as a bridge between raw blockchain data and actionable insights. It aggregates data from various blockchains, standardizes it, and makes it accessible through the GoldRush API. The process involves three main steps:

1. Data aggregation: Covalent collects crucial data points across different blockchains.
2. Standardization and processing: The collected data is processed and cleaned for consistency.
3. GoldRush API: The processed data is presented through an API for easy integration into applications.

Covalent's data infrastructure is designed to efficiently collect, process, and deliver blockchain data, comprising components such as remote procedure call nodes, a block specimen producer, a query node operator, and a block result producer.

Why is Covalent so popular?

Covalent's popularity stems from its ability to simplify blockchain data access and analysis. Key strengths include:

1. Multi-chain compatibility: Covalent supports a wide range of blockchains, offering a holistic view of the crypto ecosystem.
2. Storage and network efficiency: Covalent employs "block specimens" for efficient data storage and retrieval.
3. Verifiable data infrastructure: Covalent provides access to a vast, clean, and unbiased dataset, which is crucial for building reliable AI models.

The CQT to CXT migration: what this means for Covalent

The migration from CQT to CXT marked a significant milestone in Covalent's evolution. This transition brought enhanced tokenomics, expanded utility, and better community alignment. The migration process was designed to be seamless for users, with automatic conversion of CQT to CXT at a 1:1 ratio. This change paved the way for accelerated development, a strengthened ecosystem, and increased value for the Covalent Network.

CXT tokenomics

The Covalent X Token (CXT) has a total supply of 1,000,000,000 CXT, with a circulating supply of 850,000,000 CXT. The token distribution includes allocations for the team, private sales, public sale, advisors, staking rewards, reserve, and ecosystem development. CXT has no inflationary or deflationary mechanics, maintaining a constant total supply.

CXT utility

CXT serves several important functions within the Covalent ecosystem:

1. Governance: CXT holders can vote on proposals to change system parameters.
2. Staking and validation: CXT can be staked to contribute to network security and earn rewards.
3. Network access and payments: CXT is used to pay for data queries and API calls.
4. Incentivization: The token rewards developers, data providers, and other contributors to the network's growth.

The future of Covalent Network

Covalent continues to influence the evolution of blockchain data infrastructure. The team has been focusing on two key areas:

1. Product innovation: Developing new AI features for training large language models and building efficient data pipelines.
2. Expanding accessibility: Increasing awareness of Covalent's innovations and making the CXT token more widely available.

Conclusion

Covalent has established itself as a key player in the blockchain data infrastructure landscape. By addressing challenges in data accessibility, reliability, and utility, it empowers developers and businesses to harness the full potential of blockchain technology. The CXT token plays a crucial role in the Covalent ecosystem, facilitating governance, network security, and incentivization. As Covalent continues to expand its capabilities, it is poised to drive innovation and growth in the blockchain industry.

FAQ

What is covalent crypto?

Covalent crypto is a unified API providing access to blockchain data from multiple networks. It helps developers build applications by offering comprehensive blockchain analytics and insights.

Is blockchain crypto real?

Yes, blockchain crypto is real. It's based on blockchain technology, a secure and decentralized digital ledger system. Cryptocurrencies like Bitcoin and Ethereum use this technology, which has gained widespread adoption and recognition across various industries.