Covalent (CQT) provides enterprise clientele access to decentralized architectures and a multi-chain API. The protocol makes it easy for Dapps and users to explore data across the top-performing programmable blockchains in the world. Developers can leverage this data to improve monitoring capabilities, responsiveness, and the overall performance of their applications.
Covalent combines a PoS blockchain, an advanced API, a proprietary cryptocurrency, and helpful tax services to improve the user experience. These systems empower users and developers to achieve new heights in terms of functionality and usability. It also streamlines the integration of blockchain networks into existing systems. As such, Covalent continues to attract new users from all over the market.
What Problems Does Covalent Attempt to Fix?
Covalent tackles issues that other networks have failed to address. The protocol streamlines the entire onboarding and integration process via its no-code deployment options. Developers can integrate complex systems into their creation such as queries, wallet balance analysis, transaction history, ROI analysis, and more.
Developer Restrictions
The market is filled with businesses that seek to integrate some form of DLT tech into their existing business systems. However, accomplishing this task has proven to be difficult for these firms due to multiple reasons – primary of which is a lack of affordable blockchain experts. Covalent eliminates this problem via its coaching system.
The platform works with business development teams to ensure a smooth launch. They guide firms during the planning and marketing processes as well. This approach simplifies the creation of blockchain assets and improves overall security for the participants.
Inaccurate Data
Inaccurate data can be a serious issue for blockchain users. Blockchains are great for many things including their immutable status. However, it can be difficult to find a single location to access this information as most blockchains don’t communicate freely. As such, the task requires developers to contact each network and set up communications.
Covalent offers a better solution, with the protocol providing deep, granular, and historical blockchain data openly. The platform was designed to continuously index the blockchain market. When doing so, the protocol registers vital data such as transaction activity, positions, and token balances. Users can take this information and integrate it into their Dapps to make it more impactful. Currently, developers can access Ethereum, Polygon, Binance Smart Chain, and Avalanche using Covalents multichain API.
Benefits of Covalent
There are a lot of benefits that Covalent brings to the table. For one, the protocol enables users to easily scrutinize blockchains which improves the overall transparency of the market. Additionally, the open nature of the protocols makes it ideal for use by a large range of clients including consumers, enterprise, and software development teams.
Scalability
Covalent makes it easy to launch scalable Dapps. These protocols can include a new level of functionality thanks to the immersive nature of Covalent. The multi-chain API provides reliable, real-time access to vital data that can make a difference.
Lower Fees
Covalent saves developers on fees as well. Gas prices in the crypto market and the real world are on the rise. Networks like Ethereum have suffered from this problem for years now. The explosion in the popularity of DeFi has placed incredible strain on the network due to its technical structure and current Proof-of-Work consensus mechanism. Covalent provides a more cost-effective option for developers to consider versus contacting each network independently.
How Does Covalent Work?
Covalent enables developers to use its multi-chain API securely. API is a term that stands for Application Programming Interface. Its software works as an intermediary between two platforms. You use APIs every day and probably never realized it.
For example, when you check a widget on your phone you are using an API. The system communicates data between your phone’s operating system and the widgets operators. The entire data transmission remains secure using an API. There are four types of APIs commonly in use today – public, partner, private and composite.
The Covalent API is easy to integrate into Dapps and its flexibility makes it a powerful addition to any developed tool set. Covalent provides developers with many options on how to utilize this data connection point which further expands the flexibility of all the networks that support Covalent API services. As such, the developers envision many more networks joining the system in the coming months as the benefits are obvious for all parties.
Tax Services
Covalent provides a crypto tax service to users. Crypto taxation is a consideration that users need to be aware of as the IRS has already earmarked billions to track these transactions internationally. Businesses can save on taxes and enjoy more transparency using the Covalent Tax Services offered.
Covalent NFT Dashboard
One of the main features that Covalent offers is an all-inclusive NFT launch strategy. The network provides NFT users access to valuable data including the trends, liquidity, and ROI of collectibles. The system also includes full support for creators and businesses seeking to integrate NFT tech into their strategy.
Token – CQT
The CQT token operates as the main governance token for the network. Users can stake this token to ensure passive returns. They also must hold this token to participate in governance options. CQT holders can put forth proposals regarding the integration of new platforms, systems, fee changes, and more.
Covalent History
Covalent was founded in 2018 by co-founders Ganesh Swami and Levi Aul to streamline Data access in the blockchain market. The network was an immediate hit after securing $5M via two funding rounds. The network managed to garner support from some well-known VCs including Alameda Research, CoinGecko, and Hashed Ventures.
Bottom Line
Covalent has taken a wise approach to the blockchain sector. Whenever you see a protocol that seeks to provide the entire sector with an advantage, it’s safe to consider that platform as a valuable addition to the market. As such, Covalent is well positioned to become widely used by developers and the general public moving forward.
