In blockchain development, one persistent challenge stands tall: accessing and utilizing on-chain data efficiently. Imagine building a decentralized application (dApp) only to hit a blocker when trying to access critical blockchain data—it's like trying to understand an ancient language without the right tools.

This is where Covalent comes in—Covalent acts as the key, simplifying access to decentralized data for developers. Covalent isn't just another data provider; it's the key that unlocks seamless access to decentralized data for developers.

In this article, we'll uncover the role of Covalent in the blockchain infrastructure stack. We'll delve into how Covalent simplifies developers' lives by bridging the gap between intricate blockchain networks and their applications. Join us as we explore where Covalent fits in this intricate world of blockchain infrastructure.

The Importance of Easy Access to Blockchain Data

For developers working with blockchain, such as those making decentralized apps (dApps) or adding blockchain features to their systems, getting blockchain data easily and using it effectively is very important. The main challenge is that blockchain data is complex and hard to understand. Developers need this data to be simple to get and easy to work with. If accessing and using blockchain data is too complicated, creating these apps or systems becomes tough and inefficient. Making blockchain data more accessible and user-friendly is key to fully using its powerful features in various applications.

Addressing Data Accessibility Challenges

Covalent's solutions directly address the hurdles faced by developers when dealing with blockchain data. For instance, developers often encounter challenges in aggregating data from multiple chains, normalizing it, and presenting it in a standardized format. Covalent's infrastructure and services seamlessly handle these complexities, offering a unified API that abstracts away the intricacies of interacting with diverse blockchain networks and protocols.

By merging blockchain data into a user-friendly format, Covalent helps developers concentrate on creating new things instead of getting stuck on data details. Its tools help speed up the use of blockchain by making it easy for developers to get and use blockchain data for creating advanced decentralized apps.

Covalent's Position in the Blockchain Infrastructure Stack

Covalent occupies a crucial position within the intricate layers of the blockchain infrastructure. Positioned as an essential data layer, Covalent simplifies data access and retrieval, bridging the gap between blockchain networks and developers. Unlike underlying blockchain layers focused on consensus mechanisms or smart contract execution, Covalent's primary focus lies in providing a standardized interface for querying blockchain data across various blockchains.

Blockchain Networks

At the foundational layer of the blockchain infrastructure, you find the actual blockchain networks like Ethereum, Binance Smart Chain, or Polygon. These networks handle consensus, transaction processing, and smart contracts.

Node/API Providers

This layer consists of nodes and API providers that act as intermediaries between blockchain networks and developers/users. Nodes maintain copies of the blockchain and facilitate data access, while API providers offer services to interact with blockchain data more efficiently.

Covalent operates in this layer, between blockchain networks and blockchain developers. It functions as a data provider or data layer, offering a powerful API that simplifies access to complex blockchain data.

While not a part of the foundational blockchain network, Covalent stands as a crucial bridge, providing standardized and accessible data to developers building decentralized applications.

Decentralized Applications (dApps)

This layer involves the development and execution of decentralized applications, utilizing data from the blockchain. Developers creating dApps rely on accessible and structured data provided by services like Covalent to build innovative applications without struggling with raw blockchain intricacies.

Comparing Covalent to Other Infrastructure

Comparing Covalent to other infrastructure reveals its unique value proposition. While some providers concentrate on security, consensus, or smart contract execution, Covalent operates as a data abstraction layer, serving as an indispensable bridge between developers and blockchain networks. Unlike infrastructure layers that primarily cater to node operation or blockchain consensus, Covalent's emphasis on data accessibility and normalization makes it an essential tool in the blockchain toolkit.

An Overview of Covalent

The core mission of Covalent revolves around democratizing access to blockchain data, i.e., making blockchain data easy for everyone to use. This helps developers, businesses, and apps use the power of decentralized networks without dealing with the complicated details of blockchain data.

At its heart, Covalent aims to be the go-to solution for comprehensive and standardized blockchain data. With a firm belief in the transformative potential of blockchain technology, Covalent endeavours to unlock this potential by offering a unified and user-friendly gateway to a multitude of blockchain networks.

Features and Services

Covalent's suite of services revolves around its powerful API that acts as a conduit to a vast array of blockchain networks. Its API simplifies the retrieval of on-chain data, presenting it in a structured and understandable format. What sets Covalent apart is its ability to aggregate and index blockchain data across various networks, providing developers with a single point of access to comprehensive on-chain information.

  • Unified API: This product streamlines access to comprehensive blockchain data across various networks. It offers web3 developers a singular, simplified interface to retrieve historical blockchain data. You can learn more about it here.

  • GoldRush: Covalent GoldRush: GoldRush is a set of React components to fetch any on-chain data across any of the 200+ Covalent-supported blockchain networks. These components do not require an active web3 provider since data is hosted, indexed, and queried from the Covalent Network.

  • Crypto Taxation SDK: The Covalent Crypto Taxation SDK provides a complete set of APIs enabling scalable crypto tax solutions. Leveraging historical on-chain transaction data from over 200 chains, it offers a comprehensive platform for building tax-related tools.

  • Crypto Wallet SDK: The Covalent Crypto Wallet SDK offers a single API source for real-time asset and transaction details, NFT information, and economic scaling features, providing a consolidated platform for users.

Use Cases and Applications

Numerous real-world applications stand as testaments to Covalent's transformative impact. Decentralized applications operating across various sectors such as finance, gaming, and NFT marketplaces leverage Covalent's data services to enhance user experiences and functionality. For instance, blockchain developers can utilize the Covalent API to provide users with comprehensive portfolio analytics and transaction histories.

Similarly, NFT marketplaces rely on Covalent's rich data to provide detailed insights into token ownership, transaction history, and provenance, enhancing trust and transparency within the ecosystem. These applications exemplify how Covalent's services play a pivotal role in enhancing the functionality and usability of blockchain-based applications across diverse industries.


In summary, Covalent is playing a key role in changing how we access blockchain data. By providing easy and standardized access to detailed blockchain information, it's helping drive innovation and speeding up the use of blockchain in various industries. Get your API Key today to see these changes for yourself. With Covalent, you can build quicker, smarter, and explore the vast potential of blockchain.