Technical complexity limits the adoption of blockchain technology, and this is a significant barrier for smaller business organisations. Enterprises with substantial resources still find it hard to justify integrating blockchain technology in their business processes. At the moment, the rapid deployment of blockchain systems is time-consuming and expensive.
But it doesn’t have to be.
Covalent, a blockchain company that promises to remove barriers for blockchain adoption, recently entered the limelight with a $3.1 million investment. Covalent is a Vancouver-based blockchain data analytics startup that promises to improve the transparency and visibility of blockchain assets across multiple networks.
As the blockchain community continues to push for the widespread adoption of blockchain technology, there is a need to work on reducing bottlenecks and enabling smooth transitions for businesses, regardless of their financial power.
Many issues are impeding mass adoption, and this requires a strategic approach to bring on board more enterprises and champions for this novel technology.
Solving even one of these issues goes a long way in bringing blockchain to the masses. In this regard, Covalent has identified one critical impediment and has developed the appropriate tools to solve the issue.
Covalent removes barriers for adoption of blockchain data and increases transparency and visibility of blockchain assets
Covalent is one of the leading blockchain-based companies that is working to create modern solutions to facilitate the adoption of technology across multiple sectors. The company is focused on developing unique data analytical products that users can deploy across various platforms and devices.
Blockchain technology has been lauded for its ability to transform businesses by improving efficiencies, lowering costs, and boosting the speed of operations. These benefits have been covered widely, while little attention has been paid to the technology’s shortcomings. This can be quite frustrating for several enterprises that are interested in integrating blockchain in their operations.
One of the unique features of this technology is its capability to record the full history of transactions and events occurring over the network. As a result, blockchain data takes up thousands of gigabytes in storage space, most of which may be irrelevant for particular organisations. This presents a big data problem for organisations that requires loads of human resources and sophisticated technology to solve. Whereas these may be readily available for resource-rich enterprises, most businesses cannot afford such luxuries.
Covalent understands that this is a genuine concern and has taken up the challenge to address this long-standing problem.
The Covalent solution
The Vancouver-based enterprise is creating tools for organising the Ethereum blockchain’s data to deliver insights for a decentralised world. Covalent aims to achieve this by creating a robust infrastructure that collects the entire blockchain history for analysis through smart big data tools.
The feature-rich Covalent API is designed in a way to eliminate guesswork and enables developers to merely put together the building blocks they need for their product. This process eliminates the need for specialised software engineers on the user’s side and removes a massive barrier for adoption.
Any product owner can easily leverage the Covalent API to query for accurate and timely blockchain data. For example, one can request:
Token balances — This API enables users to quickly get token balances, current and historical values in dozens of quote currencies and cryptocurrency logos.
Event logs — This API automatically decoded event logs with the right data types, including those emitted through proxy contracts.
Uniswap LP ROI — This API computes real-time ROI of the user’s current open positions and historical closed positions as a liquidity provider on Uniswap.
Kyber exchange rates — It computes real-time exchange rates for any supported pair block-by-block with standard aggregations.
These are just a few examples of what is possible with this one-stop-shop API for Ethereum data.
Covalent tools already in use
Covalent defines themselves as a forward-thinking business that aims to solve their users’ needs through personalised and scalable blockchain data. It is easy to misconstrue this and view Covalent as an organisation that is building tools only for use in the future. The truth is Covalent is bringing the future much closer by developing and deploying those tools today.
The company has built new features that are fast-tracking mainstream adoption of cryptocurrencies and Decentralised Finance (DeFi). On July 4, Covalent launched a new feature that enables DeFi users to view their Ethereum transactions and account balances in a ‘bank statement’ style on SafeKeep.
This seemingly simplistic feature is significant in boosting transparency in the DeFi sector that has been labelled the “Wild West”. The industry has been incredibly chaotic with users lacking proper tools to track their investments and monitor changes in their portfolios.
The company also launched a software development kit (SDK) that enables users to access any type of data with five or fewer lines of code. The SDK is particularly useful for extracting data from the Ethereum blockchain that has been a significant challenge for an organisation as it is disorganised, messy and tedious. Covalent views this as a revolutionary tool that will bridge the data availability gap that has been hindering mainstream blockchain adoption for years.
With some other significant developments in the works, Covalent is gearing towards building an even more robust infrastructure that users can rely upon to obtain actionable insights to boost productivity and business growth.
For the blockchain community, Covalent is playing a significant role in accelerating mainstream adoption of the technology; something that has held back the industry for the longest time.