API3

Smart contracts often face challenges in accessing reliable data, but application programming interfaces (APIs) are seen as a potential solution to this issue.

API3 aims to facilitate the development, management, and monetization of decentralized API versions on a large scale. As blockchain technology becomes increasingly integral to the economy—from decentralized finance to supply chain management—the team behind API3 argues that delivering "timely, reliable real-world data" to smart contracts is more critical than ever.

The API3 whitepaper, released in September 2020, highlights a key challenge with current APIs: connectivity. Currently, smart contracts lack a direct method to connect with APIs for up-to-date data, resulting in a surge of interest in oracles.

While oracles have offered a partial solution, they have also introduced the "Blockchain Oracle Problem." These oracles act as middleware between APIs and smart contracts, increasing both costs and centralization. API3 plans to address this by empowering API providers to run their own nodes.

The API3 token launched in early December, following a token sale that raised tens of millions of dollars.

API3 was brought to life by a trio of visionaries. Heikki Vanttinen, one of the founders, has written extensively about the project and its objectives. Previously, he founded and served as CEO of CLC Group, a blockchain lab focused on creating smart contract solutions for a more trustless, efficient, and secure future. Vanttinen also held the position of chief marketing officer at Zippie, a mobile operating system designed to drive mainstream adoption of blockchain technology.

Joining Vanttinen is Burak Benligiray, who also worked at CLC Group as CTO. Benligiray has penned articles about the benefits of ChainAPI, the integration platform for API3, which is considered the "spiritual successor" to Honeycomb, an initiative pursued by CLC Group.

The third co-founder is Saša Milić. Alongside her role as a sessional lecturer at the University of Toronto, where she taught computer science students, she has experience as a software engineer at Facebook and as a simulation data scientist at Gauntlet.

In the blockchain and cryptocurrency world, many projects focus on integrating this technology into established sectors like real estate and finance. API3 stands out by addressing issues that have arisen within the blockchain ecosystem itself.

APIs play a crucial role by supplying blockchains with off-chain data—without which, decentralized ledgers wouldn't understand how to value coins.

Explaining what sets API3 apart, Vanttinen noted that decentralized APIs can offer "superior data transparency right from the data source level," unlike current decentralized oracles that don't include the data source API in their solution scope.

To realize API3, a lightweight and robust middleware called Airnode has been created. This tool's distinctive features lie in its ability to be deployed in minutes, improving transparency and significantly reducing transaction fees.

A total of 15 million tokens were distributed to pre-seed and seed investors, while an additional 20 million tokens were set aside for a public token distribution event during the first two weeks of December. The founders received 30 million tokens, 10 million went to partners and contributors, and 25 million were allocated to an ecosystem fund.

Tokens sold in the public sale are unlocked, while seed investors and founders have a vesting period ranging from two to three years.

API3 is created as an ERC-20 token, which means it's built on the Ethereum blockchain.

API3 can be purchased on several popular exchanges. On Uniswap, it is paired with Wrapped ETH, while on Huobi Global and KuCoin, it is available against USDT. Additionally, API3 can be found paired with ETH on OKEx and 1inch. For more information about converting fiat currencies to crypto, check out our helpful guide.