API3 ist das Ethereum-Token des API3-Projekts, das darauf abzielt, traditionelle APIs mit dem Blockchain-Ökosystem zu verbinden. Das API3-Token hat in Bezug auf die API3-DAO (dezentrale autonome Organisation) Governance-Funktionen, seine Inhaber können ferner über Projekt-Upgrades abstimmen.
What Is API3 (API3)?
API3 (API3) is a collaborative project that aims to deliver traditional API services to smart contract platforms in a decentralized manner. The platform is governed by the API3 DAO (decentralized autonomous organization); hence, the platform's code is open source, and the operations are transparent. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain.
Predominantly, blockchain-based Web3 applications have limited access and can use real-world data and services. To bridge the gap, the platform offers API3 Alliance, which aims to eliminate the gap between Web3 and the real world while helping members successfully expand into Web3services. API3 Alliance is the association of API providers on Web3.
According to the API3 whitepaper, businesses offer various services over web APIs, ranging from traditional financial transaction execution to providing asset price data. To interact with the real world, decentralized applications must be able to access the services that web APIs offer. However, these APIs are not natively compatible with decentralized applications; thus, existing middleman-based interface solutions face issues of being expensive, insecure, and centralized.
Further, the platform envisions the concept of an API (application programming interface) to take the next evolutionary step. The step involves meeting the strict decentralization requirements of Web3 without employing third-party intermediaries. This new generation of decentralized APIs is called dAPI.
As a solution to the problems mentioned above, API3 aims to offer security features on the protocol without needing a middleman. dAPIs do not depend on third-party software that poses a constant risk factor in the alternative solutions. In addition, the dAPI insurance service provides trustless and quantifiable security to users. This further cements API3 as a secure solution to receive API services as a decentralized application.
Along with this, the API3 solution is robust on several levels since the platform uses Airnode. Airnode uses serverless technology, which is resistant to downtime. Airnode is Web3 middleware that connects any web API directly to any blockchain application. API3 software is paired with a stateless node design. This design is not affected by adverse networks or bugs, displaying the robustness of the platform. Moreover, the dAPIs will be DAO-governed, which maintains a self-regulating balance of reward and risk through well-engineered incentives. This further provides a robust risk mitigation framework. Oracles are agents that act as an intermediary between an API and a smart contract platform.
dAPIs aim to offer cost efficiency by eliminating the middlemen. This further eliminates the middleman tax, the payment made to third-party oracles. In addition to this, the first-party oracles data feed does not require over-redundancy; hence, dAPIs aim to achieve the same level of decentralization with fewer oracles, providing savings in transaction costs. Finally, through complete decentralization of governance to parties, the API3 solution aims to achieve flexibility. The platform also aims to evolve and constantly meet new challenges and needs.
API3 is the token native to the API3 project and the fundamental unit of the Web3 API economy. The API3 token facilitates the users with the following utilities:
Staking: Grants inflationary rewards and membership in the API3 DAO. Inflationary rewards force token holders to stake and preserve the value of their tokens.
Collateral: This feature backs insurance services that protect users from damages caused by dAPI malfunctions.
Governance: Grants direct representation in the API3 DAO.
History of API3 (API3)
Heikki Vänttinen, Burak Benligiray, Saša Milić are the founders of the API3 platform. Vänttinen is the founder and CEO of CLC Group.
How Are New API3 (API3) Tokens Created & Earned?
The staking utility incentivizes participation in the DAO and alignment of incentives. Users stake API3 tokens into the DAO pool and receive governance voting rights. Moreover, by staking API3 tokens, users can take part in providing API3 users with quantifiable security in the form of insurance. Staking on the platform offers the following benefits:
Generate shares in the DAO through revenue sharing from the insurance service fees.
Generates inflationary rewards by decreasing the circulating supply of API3 tokens through revenue burn from the insurance service fees.
Improved inflation protection of the token as compared to the unstaked tokens.
Voting rights on DAO proposals.
How to Buy API3 (API3)
When it comes to buying API3, you have a lot of options, including Coinbase's centralized exchange, where you can simply and security buy, sell, and manage hundreds of cryptocurrencies.
