Next Generation of Document The Graph Indexing

# The Graph's Next-Generation Indexing: Horizon Upgrade and Substreams Revolution ## Executive Summary The Graph has undergone its most significant transformation since launch with the **Horizon upgrade** (mainnet December 9, 2025), evolving from a Subgraph-specific protocol into a modular multi-service platform supporting real-time data streaming, custom APIs, and analytics services. This fundamental architecture shift enables parallelized data processing across 80+ blockchain networks while maintaining backward compatibility with existing Subgraphs. [The Graph](https://thegraph.com/blog/horizon-upgrade-live/) ## Horizon Upgrade: Architectural Transformation ### Core Innovation: From Single-Service to Modular Platform **Horizon represents a complete rearchitecture** of The Graph's underlying infrastructure. Previously built exclusively for Subgraphs, the protocol now features reusable primitives that support any type of blockchain data service through a unified framework. [The Graph](https://thegraph.com/blog/horizon-implementation-guide/) | Aspect | Pre-Horizon | Post-Horizon | |--------|-------------|--------------| | **Architecture** | Subgraph-specific infrastructure | Modular, multi-service platform | | **Service Support** | Only Subgraphs | Subgraphs, Substreams, Token API, analytics, custom services | | **Economic Model** | Single-service rewards | Cross-service fee sharing | | **Innovation Pace** | Protocol-limited | Permissionless service development | ### Key Technical Components The upgrade introduces three fundamental innovations that enable this transformation: 1. **Core Staking Protocol**: Provides economic security for any data service, not just Subgraphs 2. **Unified Payments System**: Handles micro-payments and fee distribution across all services 3. **Service Framework**: Enables permissionless development of new data services without rebuilding infrastructure [The Graph](https://thegraph.com/blog/horizon-upgrade-live/) ## Substreams: High-Performance Data Streaming ### Revolutionary Data Processing Capabilities **Substreams represents the technical cornerstone** of The Graph's next-generation indexing, offering parallelized blockchain data processing that dramatically outperforms traditional methods. [The Graph](https://thegraph.com/docs/en/substreams/introduction/) **Key Technical Advantages:** - **Parallel Execution**: Processes massive data chunks simultaneously instead of sequential block-by-block processing - **WASM-Based Modules**: Rust-compiled modules running at native speed for maximum performance - **Deterministic Pipelines**: Guaranteed data delivery without missing blocks or RPC dependencies - **Multi-Sink Support**: Output to Subgraphs, Postgres, Clickhouse, MongoDB, and other databases ### Developer Experience Transformation Substreams enables developers to: - **Sync years of blockchain history in minutes** instead of days/weeks - **Write custom Rust modules** that filter and transform raw data into precisely what applications need - **Access comprehensive data models** including trace-level EVM data and account changes on Solana - **Leverage hundreds of pre-built packages** from the Substreams Registry for rapid development [The Graph](https://x.com/graphprotocol/status/2014348538398802128) ## Adoption Metrics and Network Health ### Rapid Horizon Integration The Horizon upgrade has achieved remarkable adoption rates across the network: | Metric | Value | Significance | |--------|-------|--------------| | **Indexer Participation** | 100% of active Indexers | Complete network upgrade | | **Query Service** | 99.39% via Horizon | Near-total migration | | **Stake Migration** | 90.33% of total GRT staked | Strong economic alignment | | **Query Volume** | 668M queries (10 days) | Massive scale operation | *Data as of January 14, 2026* [The Graph](https://x.com/graphprotocol/status/2011441422990225779) ### Multi-Chain Expansion The Graph now indexes **80+ blockchain networks**, providing a unified data layer for: - Ethereum, Solana, Arbitrum, BSC, Optimism, Polygon - Base, Avalanche, World Chain, and numerous other ecosystems - Support for both EVM and non-EVM chains (Solana, Injective, Starknet, Vara) [The Graph](https://x.com/graphprotocol/status/2018331498588352996) ## Economic Implications and Value Accrual ### Enhanced GRT Utility and Fee Generation Horizon fundamentally transforms The Graph's economic model by: 1. **Diversified Revenue Streams**: Multiple services generate GRT fees across different use cases 2. **Increased Protocol Activity**: More services → more usage → more fee generation 3. **Strategic Issuance**: Protocol inflation can be directed to fund innovation across services 4. **Token Burns**: Increased fee volume may lead to additional token burns under protocol parameters [The Graph](https://thegraph.com/blog/horizon-upgrade-live/) ### Indexer Economics Evolution The current indexing model faces challenges that Horizon addresses: | Challenge | Horizon Solution | |-----------|------------------| | **Redundant Computation** | 100+ Indexers indexing same subgraphs | Potential layered model with specialized roles | | **POI Disputes** | Inconsistencies from different environments | Consensus-driven indexing layer proposals | | **Unsustainable Economics** | Inflation-based rewards, low query fees | Shift toward query-dominated economy | *A community proposal suggests a three-layer model (consensus compute, storage, query) to optimize economics* [The Graph Forum](https://forum.thegraph.com/t/proposal-rethinking-indexing-in-the-horizon-era/6728) ## Developer Benefits and Use Cases ### Comprehensive Data Solution Suite Horizon eliminates the need for developers to "duct tape" multiple data solutions together by providing: - **Subgraphs**: Custom APIs for historical data and complex queries - **Substreams**: Real-time data streams and event processing - **Token API**: Token balances, transfers, and pricing data - **Analytics Solutions**: Advanced metrics and compliance tools - **Custom Services**: Future innovations built on the same infrastructure [The Graph](https://x.com/graphprotocol/status/2008557753665532277) ### Vertical Integration Advantages Developers benefit from: - **Single Protocol Integration**: One API endpoint for multiple data services - **Reduced Technical Debt**: Eliminates multiple vendor integrations - **Enhanced Reliability**: Decentralized infrastructure ensures long-term availability - **Cost Efficiency**: Unified pricing and payment system ## Enterprise and Institutional Adoption ### Compliance and Verification Capabilities Horizon enables enterprise-grade features through services like: - **Amp**: Compliance and verifiability solutions for regulated environments - **Custom Data Pipelines**: On-premise deployment options meeting regulatory requirements - **Verifiable Data**: Proofs of indexing and query validity for audit trails [The Graph](https://thegraph.com/blog/horizon-implementation-guide/) ### Multi-Chain Enterprise Support The protocol now supports complex enterprise requirements across multiple jurisdictions and regulatory frameworks, making it suitable for: - DeFi protocols requiring real-time liquidation alerts and historical analytics - NFT marketplaces needing ownership records and metadata indexing - AI systems requiring structured blockchain data for machine learning - Gaming platforms tracking in-game assets and player history - DAOs managing governance data and treasury tracking [The Graph](https://x.com/graphprotocol/status/2008913730524852452) ## Future Outlook and Community Proposals ### Layered Architecture Proposal The community is actively discussing a **three-layer model** to optimize the network: 1. **Indexing Layer**: Consensus compute by specialized indexers with verified outputs 2. **Storage Layer**: Durable data availability by storage specialists 3. **Query Layer**: Competitive query service market focused on performance and reliability This model aims to eliminate redundant computation while maintaining decentralization and creating a sustainable query-based economy. [The Graph Forum](https://forum.thegraph.com/t/proposal-rethinking-indexing-in-the-horizon-era/6728) ### AI and Advanced Use Cases The Graph is positioning itself for next-generation applications: - **AI Agent Integration**: MCP integration enables AI systems to query blockchain data directly - **Real-time Analytics**: Substreams enables high-frequency trading and instant analytics - **Cross-chain Intelligence**: Unified data access across 80+ chains for comprehensive analysis [The Graph](https://x.com/graphprotocol/status/2008258606437986486) ## Conclusion The Graph's Horizon upgrade and Substreams technology represent a quantum leap in blockchain data infrastructure. By transforming from a single-service protocol to a modular multi-service platform, The Graph now offers: 1. **Unparalleled Performance**: Parallel processing and real-time streaming capabilities 2. **Comprehensive Coverage**: 80+ blockchain networks with consistent data access 3. **Economic Sustainability**: Diversified revenue streams and improved value accrual 4. **Enterprise Readiness**: Compliance-friendly features and institutional-grade reliability 5. **Future-Proof Architecture**: Permissionless innovation framework for new data services The nearly complete migration to Horizon (99.39% of queries) demonstrates strong network consensus behind this direction. As blockchain data needs grow increasingly complex with AI, enterprise adoption, and multi-chain ecosystems, The Graph's next-generation indexing infrastructure provides the foundational layer for Web3's continued expansion. **The bottom line**: Horizon establishes The Graph as the comprehensive data layer for the entire blockchain ecosystem, capable of supporting everything from simple DApp queries to complex enterprise data pipelines across every major blockchain network.