What Is API3 (API3)?- How to Buy and Use It

What Is API3 (API3)? How to Buy and Use It

Smart contracts often find themselves grappling with the challenge of accessing dependable data, and while APIs have been hailed as a potential solution, API3 takes it a step further. With a bold vision to build, manage, and monetize decentralized APIs at scale, API3 aims to revolutionize how smart contracts interact with the real world as blockchain technology continues to reshape industries like decentralized finance and supply chain management.

Unveiled in September 2020 through its groundbreaking whitepaper, API3 identifies the core issue of connectivity between smart contracts and APIs. There is no direct link for smart contracts to access the latest data from APIs, leading to a reliance on oracles as intermediaries. However, this has given rise to the “Blockchain Oracle Problem,” characterized by increased costs and centralization. 

API3 seeks to disrupt this status quo by empowering API providers to operate their own nodes, eliminating the need for traditional oracles, and unlocking a new era of trust, security, and efficiency for smart contracts.

After a highly successful token sale generating tens of millions of dollars, API3’s token went live in December, marking a significant milestone in its journey to reshape the landscape of smart contracts and decentralized APIs. 

With its unique approach and unwavering commitment to timely and reliable real-world data, API3 is poised to usher in a new paradigm where smart contracts seamlessly integrate with the external world to unlock unprecedented possibilities.

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Who Are the Founders of API3?

API3 is the result of a collaboration among three individuals who have brought this project to life. Heikki Vanttinen, an experienced professional who has written extensively about the project and its goals, is one of the co-founders. 

He has previously held positions as the founder and CEO of CLC Group, a blockchain lab focused on developing real-world smart contract solutions for a more secure and efficient future, and the chief marketing officer at Zippie, a mobile operating system aimed at mainstream adoption of blockchain technology.

Joining Vanttinen is Burak Benligiray, who also worked at CLC Group as the Chief Technology Officer. Benligiray has previously highlighted the merits of ChainAPI, which serves as the integration platform for API3 and is considered the “spiritual successor” to Honeycomb, an innovation pursued by CLC Group.

The third co-founder of API3 is Saša Milić, who brings her expertise as a sessional lecturer at the University of Toronto, where she taught core curriculum courses to computer science students. Milić has also worked as a software engineer for Facebook and as a simulation data scientist for Gauntlet, showcasing her diverse background in the tech industry.

These three individuals form the core team behind API3, combining their skills, knowledge, and experience to drive the project forward.

What Makes API3 Unique?

In the realm of blockchain and cryptocurrency, there is a common focus on applying this technology to established industries like real estate and finance. However, API3 stands out for its unique approach to addressing issues within the blockchain space itself.

APIs play a crucial role in providing off-chain data to blockchains, as they determine the value of coins. Heikki Vanttinen, one of the co-founders of API3, highlighted how decentralized APIs can offer superior data transparency by considering the data source API at the factual data source level, which sets them apart from existing decentralized oracles.

API3 uses a lightweight and robust middleware called Airnode to bring its vision to life. One of the distinctive qualities of Airnode is its ease of deployment, taking only minutes to set up. This results in improved transparency and a significant reduction in transaction fees, making API3 a promising solution within the blockchain ecosystem.

How Many API3 (API3) Coins Are There in Circulation?

As of January 2020, according to CoinMarketCap data, there are currently 13,847,549 API3 tokens in circulation out of a total maximum supply of 100 million tokens.

Out of the total supply, 15 million tokens were distributed to pre-seed and seed investors, and an additional 20 million tokens were reserved for a public token distribution event that took place in the first two weeks of December. The founding team received 30 million tokens, with 10 million allocated to partners and contributors. Additionally, 25 million tokens were allocated to an ecosystem fund.

Tokens sold during the public sale are currently unlocked. Still, seed investors and founders are subject to a vesting period ranging from two to three years, during which the tokens will be gradually released.

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How to Buy API3

Various options are available for purchasing API3, including Coinbase’s centralized exchange, which offers a simple and secure platform for buying, selling, and managing numerous cryptocurrencies. Additionally, API3 can be purchased on other platforms, such as Uniswap, where it is paired with Wrapped ETH. It is also available for trading against USDT on Huobi Global and KuCoin and can be paired with ETH on OKEx and 1inch. These options allow users to choose a platform that suits their preferences and trading needs.

How to Use API3

The API3 token is crucial for your participation in the Web3 API economy. When you stake API3 tokens, you gain voting power in the API3 DAO, enabling you to participate in governance actively, steer the project’s direction, and allocate resources. You also earn weekly rewards for your staked tokens. The pool of staked tokens provides coverage for Web3 APIs, Beacons, and dAPIs, ensuring the security and stability of the network.

Additionally, you can lock API3 tokens to subscribe to API access, allowing you to utilize the tokens as payment for accessing the APIs. As such, the API3 token serves as the lifeblood of the API3 ecosystem, empowering you to engage in governance actively, earn rewards, and access API services in the Web3 API economy.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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