What Is API3?
API3 was launched in late 2020. It allows dApps (decentralized applications) based on blockchains to utilize APIs (application programming interfaces) to gain access to data and services in the real world.
The Team Behind API3
Heikki Vanttinen, Burak Benligiray, and Saša Milić are behind the founding of API3. All have a Bachelor of Science and are highly experienced individuals.
API3’s Mission
The mission behind the formation of API3 has always been to allow for the compatibility of current APIs with Web 3.0 and its standards pertaining to decentralization, all while not overburdening dApp developers and API providers.
The Importance of Oracles in Blockchain
For all their benefits, smart contracts have a major drawback that has been holding them back for quite a while now. That drawback is how they are entirely based on blockchains, hence not connected to the actual world. API3 helps solve this and more.
Definition of Oracle
Blockchain oracles are a type of middleware that enables communication between off-chain systems, which include web APIs, data providers, IoT devices, etc., and any blockchain.
The Oracle and API Problem
The oracle problem, as we discussed earlier, can be described as the inherent drawback of blockchains not being able to gain access to any external data. As for the API problem, that would be how existing APIs, despite the various services they can provide, involve several intermediaries, aka middlemen, which makes them more centralized and less affordable.
API3 Solution
Now what would API3 have to do to address such problems? Let’s find out.
Decentralized API
Hence, since such APIs are directly sourced from these first-party providers, both middlemen and any fees associated with them can be done away with. Also, these providers can number in the thousands, thus enabling API3 to accomplish greater decentralization.
Airnode for First-Party Oracles
API3 gives API providers the flexibility to directly run oracle nodes, which it refers to as “Airnodes.” Within current API solutions, third parties are heavily involved in node operations, which Airnodes aims to reduce, thereby providing affordable “dAPI” services and effectively eliminating threats like Sybil attacks.
Benefits of API3
Here, we will be briefly looking at some of the potential benefits that API3 offers for the blockchain sphere.
Reliable Real-world Data
Accurate and timely data is one of the most valuable assets out there. It is therefore vital for smart contracts to use data that is fresh, dependable, and available in real-time, which API3 is more than capable of doing.
Data Transparency
Within conventional API solutions, oracles tend to obscure data sources to avoid any claims involving liability, which API3 tries to address by providing API providers with economic incentives to encourage transparency regarding their data sources.
Easy to Deploy
Airnodes can be fairly efficient and user-friendly, easily deployable within minutes, and thus significantly reduce transaction fees.
Security Measures in API3
To elaborate, with the removal of middlemen from the mix, any chances of oracles colluding to skew outcomes are thus removed, thereby increasing security.
Use Cases of API3
One of its primary use cases would be the fact that dAPIs may be bridged so that any blockchain can be supported, all while existing as this multi-layered, cross-chain oracle solution that can supply the required data to the decentralized ecosystems that need it. Several platforms can benefit from dependable data oracles.
API3 Ecosystem
Within this section, we will briefly delve into its ecosystem and its primary components.
API3 DAO
API3 has its own DAO (decentralized autonomous organization), which manages the dAPIs of API3 while providing the platform, to its very core, with decentralized governance. Consequently, the DAO enables a more transparent operation of dAPIs with fewer points of failure.
API3 Tokenomics
As far as tokenomics are concerned, its native token’s price currently sits at around $1.10, with a market capitalization of nearly $100 million and a daily trading volume of over $20 million.
Its fully diluted valuation, on the other hand, is over $140 million.
Role of API3 Token
The API3 token has a diverse set of roles within the ecosystem, which we will cover below.
Staking
By staking the native token, dAPIs can be granted inflationary rewards and revenue.
Collateral
The token also backs the platform’s insurance services, which safeguard its users from any damages resulting from dAPI malfunctions.
Governance
Through its DAO, one can have some much-needed and direct representation within the community, voting on proposals that leave lasting impacts.
Comparison of API3 and Chainlink
While Chainlink is a monopoly within the blockchain oracle market, API3 distinguishes itself by operating in a manner that is more decentralized than Chainlink while reducing any points of failure, thereby making it significantly less reliant on third parties, which further reduces any expenses involved and brings in more transparency.
How to Buy API3 on Binance
If what we have discussed so far has gotten you interested in buying the API3 token, then we will show you how you can do that on Binance.
Why Binance?
Binance is the world’s largest cryptocurrency exchange by far, and it offers the most competitive rates and one of the largest selections of cryptocurrencies out there.
Creating a Binance Account
So, to create your own Binance account, use the link below to gain access to the special Coin Labs referral code. Fill in all of the relevant fields on its registration page, like fields for your email address, password, and verification code.
Account Verification
Following registration, you will need to get your account verified, i.e., undertake its KYC process, if you do not wish to be subject to any form of limit. So, navigate to its verification page and enter the information asked of you, which will be related to your identity, and then prove that by providing the relevant documentation.
Funding Your Account
Following that, you will need to deposit some funds into the account you just created and verified. So, go to Binance’s deposit page and select the token you want to deposit and the network for it. Following that, a deposit address will be generated, which you will have to copy and then paste into the external exchange or wallet you are initiating the transfer from. Make sure to select the same token and network on both ends.
Navigating and Executing the Order
After depositing some funds, you will have several options for acquiring API3 on Binance, the easiest of which would be simply converting the tokens you have currently deposited into API3.
However, if you want to make a spot trade, for instance, you can do that by heading over to the relevant page, searching for your preferred trading pair, choosing the type of order, and then adjusting the parameters for it. Place your order then and wait for it to be filled.
Transferring to a Wallet
Now that you have bought some API3 tokens, you might want to transfer them to a secure wallet, preferably a cold wallet. Still, to transfer them, head over to Binance’s withdrawal page, select the API3 token and the network, and then paste your wallet’s address within the relevant field. Your withdrawal may take some time to process and will carry some fees.
Staking API3
If you are looking to stake your newly acquired API3 tokens, then look no further, for we will cover that process below, which is relatively straightforward.
How to Stake
Start by going to API3’s Staking Dashboard and linking your wallet.
Afterward, just deposit those tokens within the API3 DAO pool, which will remove them from your control and your wallet, and they will instead be controlled by the DAO pool’s smart contracts. Enter the amount you wish to stake, and then sign the transaction.
Risks and Rewards
While you will be rewarded for staking on a weekly basis, there are a few risks you have to keep in mind, and these include claim, unbonding, and protocol security risks, which aren’t unique to this protocol and can be seen pretty much everywhere.
Future Prospects
By dampening the middlemen’s roles and simplifying the process required by data providers to run their nodes, API3 is poised to add more revenue to the pockets of providers, which may encourage the adoption and participation of data providers within the decentralized sector, thereby potentially increasing API3’s value in the process.
Roadmap
From what we have gathered, API3 has, more or less, already covered a rather significant portion of its roadmap. For instance, just this year, it managed to successfully launch managed dAPIs, which come much later in its roadmap.
Conclusion
API3 addresses the oracle problem for blockchains in a unique way. Moreover, it has successfully removed the need for intermediaries or middlemen, significantly lowering the expenses involved and improving security in the process.
API3 Basics
Here are some factors that investors should consider before investing in API3.
Cryptocurrency Features | API3 (API3) |
---|---|
Publisher or Developers | Heikki Vänttinen, Burak Benligiray, Saša Milić |
Headquarters (Registration Number) | Cayman Islands |
Symbol | API3 |
Platform | Ethereum |
Published Date (CMC Registration) | 2024-12-01 |
Max Supply | No limit |
Reliability Score of API3 in 2024
These are indexes mesuring the investment reliability of API3 conducted by Coin-Labs.com.
Investment Reliability Rating Items | Scores and Current Status |
---|---|
Company Activation Rate | / 10.0 CAR |
Communication Rate | / 10.0 CR |
Technology Transparency Rate | / 10.0 TTR |
Development Participation Rate | / 10.0 DPR |
Listing Status on the World's Top 10 Exchanges | Listed on 8 Exchanges |
Number of Available Pairs Worldwide | 185 Pairs |
Market Cap of the Cryptocurrency | 256,233,669 USD (Rank #175) |
API3 Price
Here are the price and recent trading volume of API3. (Data of 2024-12-02 03:40:00)
Price Items | Price and Trading Volume of API3 |
---|---|
API3 Price | 2.257 USD |
Price Change 24h | 1.25% |
Price Change 7d | 13.32% |
Trading Volume 24h | 44,089,807 USD |
Trading Volume Change 24h | 15.77% |
Cryptocurrency Metadata
You can check the development status and social media information of API3 through the links in the table below.
Metadata Source | URL |
---|---|
🌎 Official Website | |
📖 White Paper | |
🛰️ Source Code (GitHub) | |
🎺 Message Board |
Where to Buy API3
Here are the top ten world crypto exchanges where traders can buy API3 in 2024.
Top10 Exchanges | Listed Status | Page URL |
---|---|---|
Binance | Listed | https://www.binance.com/en/trade/API3_BTC |
Coinbase | Listed | https://pro.coinbase.com/trade/API3-USD |
Kraken | Listed | https://pro.kraken.com/app/trade/api3-usd |
KuCoin | Listed | https://www.kucoin.com/trade/API3-USDT |
Bitfinex | Not listed | |
OKX | Listed | https://www.okx.com/trade-spot/api3-usdt |
Huobi | Listed | https://www.huobi.com/en-us/trade/api3_usdt?type=spot |
Bitstamp | Not listed | |
Bybit | Listed | https://www.bybit.com/trade/usdt/API3USDT |
Gate.io | Listed | https://www.gate.io/trade/API3_USDT |
Frequently Asked Questions
What is the current price of API3?
API3 price today is 2.257 USD. Furthermore, the price of API3 has fluctuated by 1.25% from 24 hours ago, and by 13.32% from a week ago.
Where is API3 listed?
Currently, it is listed on a total of 8 among the world top 10 exchanges.
What is the market cap of API3 now?
Currently, API3 has a market cap of 256,233,669 USD, which is ranking 175 among cryptocurrencies worldwide.
How much is the trade volume of API3?
Currently, 86,421,978 API3 coins are circulating through 185 market pairs. As a result, in the last 24 hours, 44,089,807 USD of API3 coins were traded in the market.