What is Subsquid (SQD)?

Deep Dive

1. Purpose & Value Proposition

SQD addresses a core bottleneck in Web3: reliable data access. Major dApps often depend on centralized node providers, creating a single point of failure. SQD’s decentralized data lake and query engine aim to provide a trustless, performant, and scalable alternative. Its goal is to become the go-to data layer for developers and enterprises, ensuring that billion-dollar protocols are not bottlenecked by fragile infrastructure.

2. Technology & Architecture

The protocol operates as a modular, permissionless network. It aggregates raw blockchain data into a structured, instantly searchable "data lake." A key innovation is its use of zero-knowledge (ZK) proofs, which allow the network to verify data integrity and processing without revealing all the underlying information, enhancing both trust and scalability. This architecture supports over 200 networks, including Ethereum, Solana, and Polkadot.

3. Tokenomics & Governance

The SQD token is the utility and governance asset for the network. It is used to stake and run nodes, participate in governance votes, and pay for premium data services. A significant recent development is the launch of Revenue Pools (Decrypt). This model allows token holders to lock SQD to support network capacity and earn a share of subscription fees paid by enterprise clients like Deutsche Telekom, directly linking token utility to real-world demand.

Conclusion

SQD is fundamentally a decentralized data utility, designed to be the reliable backbone for the next generation of dApps and AI agents by making blockchain data fast, verifiable, and economically sustainable. How will its focus on enterprise-grade service guarantees reshape the competitive landscape for decentralized infrastructure?