Covalent Pledges $25M in Funding to Bring Data Verifiability to Web3

[PRESS RELEASE – Vancouver, Canada, 4th May 2022]

Covalent, the Unified API for Web3 data, announced today the world’s first proof-based data indexer with the launch of staking on the Covalent decentralized network. Network staking via the Covalent Query Token (CQT) enables anybody from the community to contribute to governing and securing the decentralized protocol.

Ganesh Swami, Covalent’s co-founder, and CEO says, “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.”

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.

Capturing Value via CQT

The network operators will be publishing cryptographic proofs of blockchain data on Moonbeam (a Polkadot parachain) and will be utilizing the Nomad bridge as cross-chain rails for CQT. CQT is an ERC-20 token living natively on Ethereum.

Pranay Mohan, CEO and Co-Founder of Nomad:

“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.”

Derek Yoo, CEO and Founder of Moonbeam:

“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.”

About Covalent

Founded in 2017, Covalent’s Unified API serves billions of queries and is trusted by a community of 27,000+ developers and powers data for 1000+ applications including 0x, Zerion, Rainbow Wallet, Rotki, Bitski and many others.