Someone said that history doesn’t repeat itself, but it often rhymes. Let’s take a look at an historical analogy that can help us understand the value of single component within a developing market.
Let’s go back in time to the 1st Industrial Revolution. Civilization was learning how to mass-manufacture products and move raw materials more efficiently. The concept of Industry was born and built from the ground up. Factories and warehouses were built, machinery was fabricated, and railroads and canals were created. We weren’t just improving an existing system, but rather creating a whole new paradigm.
There was massive competition amongst manufacturers, and many companies rose and fell in a short period of time.
Canals were vital for transporting material in the US for a short period of time before the railroads gained dominance.
Storage and transportation methods evolved rapidly as machinery improved.
Returning to our current time, we see a similar situation with Web3 and decentralization.
Developers are building the whole technology stack from the ground up. There are thousands of crypto projects that address various issues and protocols that help them function. Many of them interact on multiple levels and rely on multiple other projects for their functionality.
Rapid technological evolution means that some projects are rendered obsolete before they even launch, and that can create a cascade of dead projects. We cannot definitely envision the future landscape, because the thousands of variables are consistently changing. Timelines fluctuate, and developers run into issues that require additional effort.
Back in the 1800’s, none of the major titans of the 1st Industrial Revolution manufactured end-use products.
They owned the steel mills, the coal mines, the railroads, or the oil wells.
It didn’t matter which brand of broom you bought- all brooms were made in factories built from their steel and were hauled on their railroads built from their steel and powered by their coal. Even the steel used to produce the factories was created with their coal. They siphoned off value at multiple points in the process, but the added efficiency meant the final broom still cost less than it did before.
Imagine if there was a single company that produced nuts and bolts during the 1st Industrial Revolution. Every train, every factory, and every machine used them. The Nuts&Bolts Co. didn’t care what product you were producing, what type of train you used to transport it, or what size of pulleys you used in your warehouse.
That is The Graph.
It functions as a transportation equivalent(moving vital info between locations), a raw material (data is as raw as you can get), and a means of production (indexing that data eliminates multiple bottlenecks.)
The Graph doesn’t care what blockchain you’re building on, what type of project you’re building, or how many other projects are competing in your market. They all come to The Graph for one of the foundational elements of Web3- easily accessed, indexed, decentralized data.
While many projects cannot reach their full potential until Web3 is fully adopted and integrated into our existing financial, data, and communications systems, The Graph is actively BUILDING that system. The Graph will extract value from the construction and maintenance of Web3, and when Web3 is fully integrated The Graph will stand alone as the crucial indexing layer of Web3.
Don’t waste your time chasing the flashy projects. Look for the infrastructure. Don’t invest in the Broom Factory- invest in the company that’s building every factory in town.