What is Subsquid Network (SQD)? Everything You Need to Know

Imagine accessing clean, historical blockchain data from over 100 networks in just a few clicks, without running your own infrastructure. That’s what Subsquid Network (SQD) is trying to make possible. So, what is Subsquid Network (SQD)? Check out the answer here.

In a blockchain world that’s getting more complex by the day, developers, analysts, and Web3 builders face one common challenge, data access. 

With countless chains and scattered information, pulling reliable, real-time, or historical on-chain data is harder than it seems. Subsquid Network offers a practical solution to this growing problem.

Subsquid aims to transform the way we handle blockchain data, from raw logs to analytics-ready formats. In this guide, we’ll explain what Subsquid Network is, how it works, what makes it different, and how the SQD token fuels the ecosystem.

What is Subsquid Network (SQD)?

Subsquid Network is a decentralized protocol for querying and indexing blockchain data. It provides users with fast, flexible access to historical on-chain data from over 100 Layer 1 and Layer 2 networks. 

It supports both EVM-compatible chains (like Ethereum, Arbitrum, and Polygon) and Substrate-based networks (such as Polkadot and Kusama).

At its core, Subsquid is designed to help developers and data consumers build powerful tools and analytics platforms without the technical burden of running their own blockchain nodes. 

It currently operates in two modes, an open-access private cluster and a permissionless decentralized testnet on Arbitrum. Both serve the same purpose, providing efficient access to blockchain data like event logs, transactions, and state changes.

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How Subsquid Network (SQD) Works

Subsquid Network follows a modular and decentralized structure. It consists of several roles that together manage data collection, processing, and distribution across the network. Here's a breakdown of how it works:

1. Data Providers

These are the blockchain networks from which Subsquid pulls on-chain data. Currently, these are mostly EVM and Substrate chains, but support for Solana and Cosmos-based chains is planned.

2. Worker Nodes

Worker nodes are individuals or organizations that provide computing and storage resources. By staking SQD tokens, these nodes join the network and help store and process data. In return, they earn SQD as rewards.

3. Log Collectors

These nodes store data processing logs on IPFS, a distributed file storage system. The logs are kept for up to six months and help preserve access to processed data for auditing and troubleshooting.

4. Scheduler

The scheduler coordinates data tasks across worker nodes. It assigns data processing jobs in real time based on current capacity and system load, ensuring balanced performance across the network.

5. Reward Manager

This module calculates how many SQD tokens each node earns. Rewards depend on processing activity and the amount of SQD staked.

6. Data Consumers

These are users who need access to blockchain data. By locking SQD tokens, they can increase their data bandwidth and gain faster access to the network’s resources.

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Subsquid Network Key Features

Subsquid Cloud

Subsquid Cloud is a Platform-as-a-Service offering that lets developers deploy their own blockchain indexers without setting up infrastructure. It includes:

• Built-in Postgres and RPC endpoints
• Zero-downtime version upgrades
• Web dashboard and CLI tools
• Google Cloud-level SLA for reliability

This is ideal for building APIs or dashboards that rely on real-time or historical blockchain data.

Decentralized Data Lake

All blockchain data collected by Subsquid is stored in a distributed data lake, a network of nodes offering shared storage and computation. This makes data access faster, cheaper, and more reliable than using traditional centralized APIs.

Squid SDK

The Squid SDK is a toolkit for building custom indexers and APIs. It supports:

• Real-time data ingestion
• ETL pipelines (Extract, Transform, Load)
• GraphQL servers for API creation
• Support for local and cloud data sinks (Postgres, BigQuery, S3)

This tool enables developers to create specialized solutions using the rich data from Subsquid’s decentralized network.

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SQD Token Overview

The SQD token is an ERC-20 asset that powers the Subsquid Network. It is deployed on Ethereum and bridged to Arbitrum One for efficient transaction handling. 

The token is not just a means of exchange, it plays a central role in how the network is governed, secured, and accessed.

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Conclusion

Subsquid Network is more than just a data indexing tool, it’s a fully decentralized infrastructure for Web3 data access. Whether you're building an analytics dashboard, a DeFi platform, or an NFT explorer, Subsquid provides scalable and efficient access to critical blockchain data.

With its modular design, cloud deployment tools, and strong token-based incentives, Subsquid offers a practical, developer-friendly solution for handling complex blockchain data needs. 

The SQD token plays a vital role in aligning the ecosystem’s incentives, from data providers to consumers.

As blockchain adoption continues to grow, reliable and decentralized data infrastructure will become more essential. Subsquid is positioning itself as a key player in that future.

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FAQ

What is Subsquid Network?

Subsquid Network is a decentralized query engine and data lake that allows users to access, retrieve, and analyze historical on-chain data from over 100 blockchains.

How does Subsquid differ from traditional APIs?

Subsquid uses a decentralized network of nodes and a distributed data lake to serve data efficiently, avoiding the limitations of centralized API services.

What is the SQD token used for?

SQD is used for rewarding node operators, bandwidth allocation, community governance, and curating trusted nodes through delegation.

Is Subsquid live on mainnet?

Currently, Subsquid runs a permissionless testnet on Arbitrum and a production-ready private cluster. A full mainnet is expected in the near future.

Who can run a worker node?

Anyone can apply to become a worker node by staking 100,000 SQD tokens and providing the required computing and storage resources.

What is Subsquid Cloud?

Subsquid Cloud is a platform-as-a-service that helps developers deploy their own indexers easily, with managed storage, RPC endpoints, and real-time data syncing.

Does Subsquid support non-EVM chains?

Currently, Subsquid focuses on EVM and Substrate ecosystems, but future plans include expanding to Solana and Cosmos-based blockchains.