The Graph is implementing state channels technology on its Ethereum-based network

Indexing protocol The Graph is deploying scalable generalized state channels on its Ethereum-based network, the San Francisco-based startup announced Friday. 

The development will enable users to connect directly to a distributed network of decentralized service providers to enable faster and more secure peer-to-peer micropayments, according to the team behind the project.

The Graph collaborated with open-source project State Channels, as well as L4, Magmo, Connext and Consensys Mesh R&D. 

The Graph has developed an indexing protocol that organizes information on the blockchain in a more efficient manner, making it possible for developers of Ethereum-based applications to run their frontend operations more smoothly. According to co-founder Yaniv Tal, deploying state channels on the mainnet at scale is a significant moment for the space. 

“It’s important for decentralized apps to run on decentralized infrastructure. Most of the node hosting so far has been dominated by more centralized services,” he told The Block. 

The Graph has been no exception to this and up to this point, has been operating as a hosted service with a single point of failure in the space, processing over seven billion queries per month. Tal said when the indexing tool launches its decentralized network later this year, developers will no longer have to publish their subgraphs directly to The Graph’s hosted service.

Instead, they will be able to connect directly to a distributed decentralized network of service providers that are accessing data.

State channels aim to enable cryptographically secure peer-to-peer transactions off the blockchain without users having to rely on the main chain to verify each transaction. However, the technology has been hard to get right. Tal said it took his team months of research and development to get to this point but said he feels the technology has gotten to a point where it is ready for commercialization.

The Graph adopted State Channel’s Nitro protocol and server wallet implementation to build its open-source, peer-to-peer micropayment protocol after coming up with an initial prototype about a year and a half ago.

The protocol will become available to everyone once Consensys Diligence performs an audit of the technology, per the team.