On June 25th, Rocktree and Covalent hosted a Space event with the theme “How to Utilize Covalent’s Billions of Data Points to Drive AI Growth,” which was moderated by Mandy from Odaily. The event showcased Covalent’s recent milestones and industry experts joining their data ecosystem.
Here is a summary of the interview compiled by Odaily:
Odaily: Can you provide a brief introduction to Covalent? With over 100 billion on-chain transaction decodes, how do you ensure the integrity and verifiable long-term data availability for AI, and how do you prevent biases and data manipulation in AI models? What role does Covalent play in Web3+AI?
Ganesh swami: Covalent is the home of Web3 data, specifically the largest indexer in the Web3 space. We index approximately 225 blockchains and provide this data to developers via APIs and to analysts through our Increment (dashboard/analytics) and GoldRush (block explorer toolkit) products. All of these are value-added products, and the revenue flows back into the Covalent network to maintain the decentralized indexing operations.
The nature of data generated from blockchain transactions or any other network protocol is inherently “unstructured,” requiring additional steps to clean, organize, and classify the data for better accessibility, readability, and usability for developers and end-users. This is where the concept of “indexing” comes into play.
If you consider the current structure of the internet (Web2), only a few protocols define the transmission, storage, and security of information. Then, a few major Web2 giants (such as Google or Baidu) facilitate this internet infrastructure and make the data more accessible through search engines, developer APIs, and large-scale AI models. Covalent’s network structures and protects Web3 data in a decentralized manner to achieve similar results.
AI models are sensitive to their input (training data) and require a large amount of data. This is why Covalent has become popular among developers building AI and crypto applications.
Odaily: Covalent has made significant progress in the first and second quarters of 2024. Can you share these achievements, and what are the important milestones for CQT in the third quarter?
Ganesh swami: In the first half of this year, Covalent has achieved several milestones:
– Launched the GoldRush Kit, a modular block explorer toolkit that allows anyone to create their own block explorer using Covalent’s indexed chains and customizable UI components.
– Continued to serve thousands of clients, including major Wall Street and financial institutions such as Fidelity and EY, as well as crypto-native groups like Consensys and Rainbow Wallet, accessing and utilizing our data to drive insights and innovation in their businesses.
– Distributed previous off-chain demand-side revenue to on-chain through our token buyback program, helping to control supply and create a network flywheel that supports fiat revenue.
– Made significant improvements to Covalent’s unified API, providing the most powerful and straightforward way to create useful data input for innovators and builders.
– Launched on the QuickNode marketplace and announced partnerships with Infura/Microsoft/Tencent in decentralized infrastructure networks, bringing major players together to advance the DePIN industry as a whole.
– Successfully migrated staking contracts from Moonbeam to Ethereum, simplifying the staking/delegation process for network participants and increasing stake participation from 11% to nearly 20%.
– Announced partnerships with various projects such as Cronos zkEVM, Celo, Gnosis Chain, Movement, MELD, Taiko, Optimism, Berachain, Sei EVM, OKX’s X1, Blast, Xai, ApeChain, and many others.
– Welcomed Arthur Hayes as an advisor to accelerate global growth.
– Launched an ecosystem airdrop program, starting with Wormhole and announcing partnerships with Taiko and zkSync for future airdrops to CQT stakers.
Looking ahead, Covalent has exciting plans for the remaining year, including launching a new vision, the Ethereum Time Machine (EWM), decentralizing query node components, deepening collaborations at the intersection of Web3 and AI, and expanding liquidity across platforms and regions.
Odaily: BitMEX’s co-founder and former CEO, Arthur Hayes, recently announced joining Covalent as a strategic advisor. Congratulations! How will Arthur Hayes support Covalent’s development, and why did he choose Covalent?
Ganesh swami: Arthur has previously worked with us on the first AI project with his company, and he is familiar with our history and real-time data. His rich experience in the crypto field and extensive resources will help open new doors for Covalent and expand into new areas.
Odaily: AI is an unstoppable trend, and Covalent has long been involved in this field, naturally empowering AI+Web3 development. Do you think Covalent’s potential is currently underestimated? Is now a good time for secondary investors to join the community and support Covalent?
Ganesh swami: Covalent has been building for years and has established a network, expanded integrations, and attracted globally renowned enterprises as clients. AI is becoming increasingly interesting in Web3, and we have made a name for ourselves in this field, creating the largest structured data availability set in Web3, which is favored by AI developers and builders. Now is definitely a good time to join the community and support the Covalent Network as we are rapidly growing, and our global community is expanding.
Odaily: Let’s talk about data and metrics. Can you share a few impressive data points that showcase Covalent’s growth in various areas?
Ganesh swami: We currently support over 230 blockchains, with over 3 billion wallets powered by Covalent data. We have seen over 30,000 developers cross-chain develop over 3,000 major projects using the Covalent network. Our social community has rapidly grown to hundreds of thousands of users on X (formerly Twitter), Discord, and Telegram.
Odaily: What is the “New Dawn Plan”? What benefits do CQT holders or stakers receive from it, and what does it mean for the ecosystem’s development? As part of the New Dawn Plan, Covalent’s ecosystem airdrop program is ongoing for CQT stakers. Are there any future token airdrop plans with other partners?
Ganesh swami: The “New Dawn Plan” is a series of plans for Covalent, not just a specific plan but a series of operations that will be implemented one by one. For example, our migration to Ethereum is part of the New Dawn Plan, making it easier for users to operate. The airdrop program mentioned is also part of the New Dawn Plan. Additionally, we have formulated a new vision as part of the plan. Overall, the New Dawn Plan focuses on the long-term development and ecosystem transformation of Covalent’s comprehensive corporate governance.
Odaily: How will Covalent Network continue to strengthen its staking infrastructure after adjusting the maximum staking multiple, and how can end-users contribute to strengthening the network?
Ganesh swami: We may introduce more stakers in the future in one of two ways. We have received many inquiries and queries related to this. One way we are currently operating is by increasing the number of operators in the network. Additionally, we have already completed some operations and will continue to fine-tune through more governance in the future, possibly increasing the stake multiple to 100% or more. We will also consider more flexible ways to help operators join us, such as solving the issue of adjusting the relevant stake count when facing a large amount of data and more customers through smartphones and more convenient methods.
Odaily: How do you see the value of Covalent in different use cases beyond just the Web3 domain?
Ganesh swami: One of Covalent’s key advantages is its high flexibility, allowing us to timely access transaction data on every chain. This flexibility enables us to quickly capture various information once new user cases or opportunities arise. From our development history, from the initial DeFi API applications to NFT API applications, to gaming API applications, and now AI user cases, we have always been able to capture information the fastest. In the long run, we will continue to make progress in other areas.
As this month comes to an end, there may be more good news for Covalent and our community next month. I believe we will have more to share with everyone in July.
