In the world of technology, application programming interfaces (API) play a crucial role in facilitating interactions between software applications and the exchange of data. However, traditional APIs are centralized and rely on trust in a central authority. API3 introduces a blockchain protocol that enables the creation of decentralized APIs. By leveraging the transparency and security of blockchain technology, API3 aims to revolutionize how APIs are built and utilized in the tech industry.
What is API3
API3 is a blockchain protocol that aims to bridge the gap between smart contracts and real-world data by providing secure and reliable data feeds through decentralized APIs (dAPIs). By eliminating the need for intermediaries and relying on a decentralized network, API3 ensures the integrity and trustworthiness of the data utilized by smart contracts.
Scalability and effective governance are key pillars of the API3 ecosystem. Token holders have the power to actively participate in decision-making by staking their API3 tokens in the dedicated staking pool. This ensures that the network remains secure and transparent, while also incentivizing token holders to contribute to the network's growth and success.
The API3 team
API3 owes its inception to a talented and visionary team of individuals. Heikki Vanttinen, the founder and CEO of CLC Group, a prominent blockchain lab, played a pivotal role in bringing API3 to life. Burak Benligiray, the former CTO of CLC Group, has also made significant contributions to the development of the API3 protocol. With his deep understanding of ChainAPI, Burak brings invaluable insights and technical expertise to the team. Completing the trio is Saša Milić, a distinguished lecturer at the University of Toronto.
How does API3 work
API3's decentralized APIs are at the forefront of data aggregation innovation, revolutionizing the way information is sourced and utilized. Unlike traditional approaches that rely on intermediaries, API3's unique approach directly connects with first-party data providers, ensuring greater transparency and mitigating the risk of data manipulation by third parties.
By eliminating intermediaries, API3 not only enhances the integrity and reliability of the data but also increases efficiency and reduces costs. The direct integration with first-party data sources allows for real-time and accurate data access, enabling developers and applications to make informed decisions and provide users with reliable information.
The API3 decentralized autonomous organization (DAO) assumes the vital role of overseeing the management of API3’s dAPIs, while concurrently establishing decentralized governance. Through this decentralized governance model, dAPIs can operate with heightened transparency and significantly reduce the vulnerability associated with centralized points of failure.
First-party oracles and airnode
API3 sets itself apart from other oracle projects by utilizing first-party oracle nodes instead of relying on third-party intermediaries. This innovative approach is made possible through Airnode, which empowers API providers to transform their APIs into decentralized APIs. By decentralizing data feeds at their original sources, Airnode eliminates the need for intermediary nodes and enables direct data access for decentralized applications (dAapp).
API3’s native token: API3
API3 is the native token of the API3 protocol, serving a variety of use cases.
API3 tokenomics
There are 84,776,283 API3 tokens in circulation at the moment. This represents about 68 percent of its total supply, which is 125,324,588 tokens. API3 has no maximum supply. This means that the protocol may increase its total supply based on governance votes.
API3 use cases
API3 token holders can stake their tokens and earn interest through the staking pools. By staking their tokens, users contribute to the network's security and decentralization and become eligible to receive a share of the revenue generated by the dAPIs.
In addition to staking rewards, the dAPI network plans to introduce a subscription model for dApps. This means that developers and users can access the data provided by the dAPIs through a subscription cost. Data suppliers contributing their data to the API3 network will be compensated in API3 tokens.
Finally, token holders can also participate in the governance of the API3 ecosystem by voting on key decisions. This ensures that the interests of the token holders are aligned with the project's.
Distribution of API3
API3's tokenomics underwent updates in 2020 and may continue to evolve based on the team's assessment and requirements. It is important to note that API3 does not have a maximum supply, which means that the total number of API3 tokens in circulation may increase over time.
During the launch of API3, 15 million tokens were allocated to pre-seed and seed investors. Another 20 million tokens were reserved for the token's initial coin offering (ICO). The founding team received 30 million API3 tokens, and 10 million tokens were given to partners and contributors. Additionally, 25 million API3 tokens were allocated to an ecosystem fund.
What does the future hold for API3
API3 revolutionizes the data oracle landscape by eliminating middlemen and enabling data providers to run their own nodes. This transparent and efficient ecosystem attracts more data providers, enhancing the availability and reliability of blockchain data. With decentralized governance and a robust DAO, API3 ensures that decision-making power is distributed among token holders, fostering collaboration and network integrity. By democratizing access to information and providing a trusted infrastructure, API3 facilitates seamless integration of real-world data into dApps, driving innovation in the blockchain space.
