Hi there!
Today I will speak about Covalent, their API, functionality of API and problems that their product can solve.
What is product of Covalent?
Covalent - provides Blockchain Data API.
I understand that some people who read this material may not know what an API is ( I was that person lol ), so I will explain in simple language:
API - is a program code with the help of which one program can interact with another at the program level.
In fact, the API is created to make life easier for the user.
Let’s use examples:
Let’s say you listened to a cool song on Apple Music and now want to share it with a friend on Telegram.
Using the API: Press the “share” button, then press the “telegram” button, click on your friend’s avatar, press send — you’re done!
Actions: 4
Without using the API: Click on the “share” button, then click on “copy”, close Apple Music, open the Telegram, enter the dialog box with a friend, open the chat line and paste the link, click send — everything is ready.
Actions: 8
“API - is a program code with the help of which one program can interact with another at the program level.”
Let’s move on to the Covalent Blockchain Data API.
So, we know that the blockchain is completely transparent, and if you, for example, want to check any transaction on the Ethereum Network, you can go to Etherscan and find some information there, but what if you need to find some information about the last 1000 transactions in Ethereum Network and you need to check it for somereasons everyday? I think it will be difficult to manually search for all the information. At this stage, you will need to create an application that will show to you the necessary information from the blockchain in the volumes you need, but the question is how it will search for information in the blockchain, how quickly your application will search for information, etc.
This is where the Covalent API comes to help you. API will find all the necessary information in the blockchain, in the required volumes, and will do it quickly.
Functionality of the Covalent API - Problems that can be solved:
First of all, you need to know a basic info that you can index the blockchain in 4 ways with Covalent API:
1) by wallet addresses;
2) by token contract addresses;
3) over networks;
4) generic event log calls;
So such a set of possible indexing can provide any project with almost any information from the blockchain. So Covalent can describe the blockchain
from head to toe.
Problems that Covalent can help to solve:
- slow updating of data from the blockchain in applications
- inaccuracy of data received from the blockchain
- difficulty in tracking your positions
- the complexity of paying taxes in the crypto industry
- the difficulty of identifying fraudsters in the crypto space
And many other things that have not visited my head.
Functionality
1. The first thing that comes to mind is that token information aggregators such as Coingecko and CoinMarketCap can use the Covalent API and information on these sites that are used by tens of thousands of users every day will become even more accurate.
2. Covalent API can provide you with information about your open positions.
3. Users can view their historical balances and current amounts on their wallets.
By the way, Covalent API is integrated in Cryptosheets - so you able to conduct all crypto-accounting and at the same time data about your balance and its history will be automatically entered into tabel.
In fact, It became easier to pay taxes.
This, by the way, is very cool, given that the pressure on crypto enthusiasts from the tax authorities is increasing every year.
4. It is easier for Covalent API users to determine if a project / other user is a scam from the information the API provides them:
1) Token contract age
2) Proxy patterns (red flag for potential rug pulls)
3) Blacklists, Scams and other warning flags
4) Curated token lists
5) Token contract verification
6) Token holders
7) Top wallets
8) Transaction volume in the last day, week, month, year.
Maybe in the future someone will create an application that will also analyze the information itself and will itself determine whether the user / project is a deceiver.
Token
At the moment, there is no info about the token, his functionality or token sale.
I think it will be a governence token, because the main product works well without token. Maybe there it will be possible to stake the Covalent Tokens.
But these are just my guesses, we will wait for official information from the developers.
Conclusion
When I first started to study the project, I could not think that there are so many possible use cases for the Covalent API in the cryptocurrency ecosystem and beyond.
Of course, Covalent API is not the only one on the market — they have competitors, but competition contributes to the fact that the products are getting better, so it will be interesting to watch the development of the project.
Official Site — https://www.covalenthq.com/
Telegram - https://t.me/CovalentHQ
Medium - https://medium.com/@Covalent_Hq
Facebook - https://www.facebook.com/CovalentHq/
Twitter - https://twitter.com/covalent_hq
There is more information about the API for those who are more professional in programming - https://www.covalenthq.com/docs/api/#overview--introduction
Author - https://twitter.com/fastmvm
