How Covalent works
Covalent is an innovative multichain API that makes blockchains connected and transparent. The idea is based on the fast indexing of any actions with data, which provides as quickly as possible complete information about any actions and connects many blockchains with a single ecosystem.
General working principle of Covalent
The Covalent API is based on today’s popular Big Data. The mechanism involves indexing billions of data points in blockchain networks to provide comprehensive information to users about internal processes. For example, crypto investors will be able to reasonably assess the prospects of a particular currency in the presence of such data to make buy-sell decisions.
The advantage of Covalent over existing solutions is that it collects data from multiple sources simultaneously, including nodes, chains, and data feed. Today it is possible to extract data from a small number of chains, and detailed collection of information is almost impossible. This requires an enormous amount of time and computing resources.
When data is collected through Covalent, the user receives a personalized report with a comprehensive dataset. All data is collected, processed, and transmitted quickly, and combined in a user-friendly single API.
Features of the functioning of Covalent
The developers describe the model for how the Covalent API functions in a very simple way.
Let’s start with two spreadsheets. One of the sheets contains data obtained using GraphQL. It has 1 or more tabs with data related to the protocol. Examples are called Uniswap or Aave. As a result, the user has the data related to this protocol and no more. There is a limitation.
Let’s take the second Excel sheet. It has a dataset that is retrieved using the Covalent API. The collected data includes everything that is obtained from the public blockchains. The dataset turns out to be more extensive. The user has a single space with the ability to study the state of affairs in entire chains of blocks. That is, the opportunities for analysis are practically unlimited.
Covalent API tech base
The product is a simple REST API. It is developed to retrieve token balances, positions, and transaction history across different types of blockchains.
At the moment, the system is being tested and connected to 7 popular blockchains. Switching between them is carried out in a single interface with almost one click. From a developer’s point of view, the Covalent API is also convenient, it does not require writing additional code.
As a result, all those involved receive a single tool for many different blockchains with ultimately transparent and multifaceted information. This is the Covalent API.