The background of SQD’s emergence
Figure:https://www.sqd.ai/
At the dawn of Bitcoin, blockchain was merely seen as a peer-to-peer payment network. However, with the introduction of smart contracts by Ethereum, Web3 opened a new era: whether it is DeFi, NFT, decentralized social (DeSoc), blockchain gaming GameFi, or decentralized infrastructure (DePIN), they are all rapidly developing based on on-chain smart contracts.
However, with the explosive growth of applications, on-chain data is also growing exponentially. How to effectively store, manage, and query this data has become a key bottleneck restricting the further development of Web3.
The challenges of Web3 data
The current Web3 is facing the following data challenges:
- Complex query: Blockchain data is scattered across multiple chains, making it difficult to query uniformly.
- High storage costs: The cost of running a full node is high, which is not conducive to developers quickly getting involved.
- Lack of verifiability: Most query results rely on centralized services, making it difficult to verify authenticity.
- Data cannot be combined: Data from different chains is difficult to aggregate and process, affecting application efficiency.
In traditional Web2, companies often use data lakes like BigQuery and Snowflake. However, in a decentralized context, such centralized solutions clearly do not align with the open and censorship-resistant spirit of Web3.
The core mechanism of the SQD Network
SQD Network is a decentralized data lake network specifically built for Web3. Its design goals include:
- Unlimited horizontal scalability: the more nodes, the stronger the capacity;
- Unauthorized access: Anyone can upload and query data;
- Verifiable query: Each query result has an encrypted signature and can be submitted for on-chain verification;
- Extremely low cost: Significantly reduce storage and query costs through new databases like DuckDB.
The entire network operates through worker nodes, schedulers, and data providers, creating a dynamically scalable data storage network.
Nodes, Queries and Reward Distribution
In the SQD Network, the core roles include:
- Data provider: Upload on-chain data to the network, currently supporting EVM and Substrate chains, with plans to expand to Solana and Cosmos in the future.
- Work node: Responsible for storing and querying data, requires a pledge of 100,000 SQD, and each query must be signed for confirmation and logged.
- Query Consumers: Use token staking to exchange for query capabilities (measured in CU) to make data requests.
Nodes earn rewards based on factors such as online time, data traffic, and the amount staked. The rewards come from 10% of the initial supply of SQD, and the reward rate is dynamically adjusted through algorithms to maintain network balance.
The role of SQD token
SQD is the native token of the network, issued on Ethereum and bridged to Arbitrum. Its uses include:
- Node Staking and Penalty Mechanism;
- Query ability allocation (lock-up to exchange for CU);
- Network governance (token holders can vote to participate in decision-making);
- Trust Signal (can delegate SQD to quality nodes for reward distribution).
The design of SQD allows the community to govern adjustments to key parameters such as rewards, query rates, and node access, ensuring the long-term decentralization and sustainability of the network.
Summary
The SQD Network is not just another data platform; it is an important piece of the Web3 data infrastructure puzzle. It provides an open, verifiable, and incentive-aligned data network that ensures data in the Web3 world is no longer “asleep,” but is widely accessed and reused, unlocking the true value potential of Web3.
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