Why use Covalent’s API?

Africa77

Published in

Covalent

5 min readMar 22, 2021

Eli5 & FAQ for: apps, users & devs

Easily power up apps, with the richest data, using a leading blockchain API

Tl:dr Summary

1. When is Covalent’s API going live?

2. Why is Blockchain data so valuable for apps, users & devs?

a. Variety of use-cases
b. Blockchain data is uniquely valuable

3. Why is finding specific data so difficult?

a. Technically complicated
b. Expensive
c. Time-consuming

4. How does Covalent’s API help you find data you need — better than competitors?

Easily create powerful apps with:

a. Richer datasets (fully-indexed chains)
b. Live data (continuously-indexed data)
c. Across many major chains & communities (Multichain)

Industry-leading tech means you get data queries:

d. Quicker (no subgraphs)
e. Lower cost (fewer developer hours)
f. Easier (no-code so your non-tech team members can use it)

1) When is Covalent’s API tech going live?

It already is. Covalent’s API is actively-used by major blockchain projects

The blockchain world is full of whitepapers, promising tech in the future. Covalent’s approach has been “build first, market later”- resulting in tech that is not only live but already in use, by leading protocols in the space.

2) Why is Blockchain data so valuable for apps, users & devs?

Apps critically rely on data. The better quality & quantity of data an App can access, the more services & value you can add to end-users.

2a. Use-cases for blockchain data

Some (of many) use-cases include:

· Ownership: wallet tracking, in-game assets, token staking, digital art

· Transaction history: reliable record useful for DeFi taxes, record keeping, monitoring accounts, etc

· Custodial & governance: voting rights & monitor proposals

· Investment: accurately track exchange or portfolio performance & measure attribution over time

· Analysis & quantitative work: access continuously-indexed, clean data (normalized, unified, and granular)

2b. Why is blockchain data uniquely valuable?

· Open record: blockchain data is (mostly) publicly available. This means you can access a greater depth of data compared to traditional data sources. Viewing live transaction data is very useful — whereas in traditional finance this level of data visibility is often kept hidden.

· Trustworthy data: blockchains, by design, are protocols to verify trust. Verification is particularly valuable because it improves dataset reliability and means less time & cost cleaning datasets.

· Large (& rapidly growing) datasets: decentralized tech has moved at breakneck speed gaining popularity, users, and data which opens up possibilities for you to use.

Image 1: Transaction volume of Ethereum. Source: etherscan.io/chart/tx

Image 2: TVL (amount of assets placed) in DeFi projects. Source defipulse.com

So there’s a goldmine of valuable data — why aren’t Apps using this valuable data to grow? Because it’s difficult to find the exact data you need.

3) Why is finding specific data so difficult?

· Technically Complicated:

Most custom projects need a developer to write query-code which will only be useful for one custom need i.e. one chain query. Other APIs require a subgrapher to be hired. Both of these require ongoing specialist expertise to query data.

· Expensive:

there’s a joke that good blockchain developers are scarcer than Bitcoin (yes, it’s a bad joke). But the reality is that blockchain devs charge a premium for their services — not just the initial setup but also the ongoing maintenance.

· Time consuming:

custom solutions can be great for a small & focused use-case — but they are time-consuming and inflexible to scale e.g. going Multichain is a large project for any developer.

Common question: “What if we are developers?”
Even better; you can let your non-tech team member’s query data from the API & you can leverage your time on more valuable work.

4) Why choose Covalent’s leading API over other options?

You might fall in love with the ease & power of Covalent’s API tech. There’s a reason why industry-leading protocols use Covalent to get the data they need.

Easily create powerful apps with:

a. Richer datasets (fully indexed):

Covalent is the only API to fully-index chains. Unlike other APIs (giving you a small subset of data), Covalent gives you every single wallet address, transaction & contract.

b. Live data (continuously-indexed):

no subgrapher delays, you have fresh data updated every 30 seconds — and we all know that up-to-date data is something that consumers & users demand.

c. Across many major chains & communities (Multichain):

getting Multichain data diversifies your app, provides extensively more data than a single chain and opens your app to multiple users & ecosystems. Cross-chain data is synergistic in creating more value-adding services for your users.

Industry-leading tech means you get data queries:

d. Quicker:

‘Ready to use’ API means you can quickly integrate Covalent’s API into your existing work, without needing the time of a subgrapher or a developer to build custom code.

e. Lower cost:

Most other APIs require hiring blockchain developers and Subgrapher expertise — which is very expensive to set up & maintain.

f. Easier:

‘No-code single API opens up the API so almost everyone can use it; your non-tech team members have access to rich data — from one single, easy API.

#covalentalchemist #blockchain #covalent #api

Covalent is clearly leading one of the most important (& fast-growing) parts of the crypto ecosystem — to follow new developments as they happen follow the links below: