Covalent commits $25M to bring data verifiability to Web3

With the launch of staking on the Covalent decentralized network, Covalent, the Unified API for Web3 data, launched the world’s first proof-based data indexer. The Covalent Query Token (CQT) allows anybody in the community to participate in managing and securing the decentralized protocol through network staking.

“Trust, but verify has been society’s adage from time immemorial. Today that changes with Covalent’s launch of the industry’s first proof-based data middleware. By relying on math and cryptography, rather than trusted counterparties, we’re re-building the foundations of a better web,” says Ganesh Swami, Covalent’s co-founder, and CEO.

Specifically with the staking launch, Covalent boasts open and cryptographically-secure indices with the following features:

• A standard data model across 32 blockchains known as the “Block Specimen” drives composability and jump-starts innovation when anyone can remix, fork, and wrap data just like any other asset.
• Solves the often-ignored read-scalability problems, which brings true transparency and visibility to blockchain data.
• A modular architecture that separates out blockchain data storage enabling a multitude of downstream use-cases.
• $25M in funding to early network operators who can help fast-track adoption of the decentralized network.

The network operators will use the Nomad bridge as cross-chain rails for CQT and will publish cryptographic proofs of blockchain data on Moonbeam (a Polkadot parachain). CQT is an ERC-20 coin that runs on Ethereum natively.

Pranay Mohan, CEO and Co-Founder of Nomad said: “Covalent offers state of the art data infrastructure for developers to query information and access on-chain data they need to build applications. A core component of this is providing a decentralized API that is resilient and censorship-resistance. Using Nomad as the cross-chain rails for CQT, Covalent will enable users to secure the Covalent network from any chain they own CQT on, beginning with Moonbeam. We are excited to partner with the Covalent team to blaze the trail on multi-chain staking, providing robust network security in a multi-chain world.”

“We’ve been collaborating with Covalent for over a year to not only improve the developer experience on Moonbeam, but to help them realize their vision for the Covalent Network. As of today, we have the Covalent Network uploading proofs to Moonbeam, a critical and novel feature in ensuring data verifiability across the network. Their team’s ability to execute is unparalleled and we’re excited to see what else they continue to deliver.” – Derek Yoo, CEO and Founder of Moonbeam.