What is API3? API3 Cryptocurrency Handbook

• What is API3?
• Highlights of API3
• API3 Tokennomics
• Key Metrics API3
• Token Allocation
• Token release schedule
• Project Team & Partners
• API3 . Token Exchange
• summary

Along with providing useful services in areas such as decentralized finance, there is a growing demand for decentralized applications, to receive data or to trigger events using traditional Web APIs. However, current database solutions do not adequately address API binding. The reason is that the approach is too general or inappropriate. To overcome this problem, API3 will foster a collaborative effort to create a new generation of Blockchain-native, decentralized APIs, or dAPIs for short. 

What is API3?

First we need to understand what is an API? API stands for Application Programming Interface - an intermediary method that connects different applications and libraries. The API provides access to a set of commonly used functions. And from there it is possible to exchange data between applications.

Using APIs, online businesses can provide data and services as a service module for monetization. Developers can then integrate into their apps. This will greatly improve the efficiency of software building both in terms of cost and construction time. 

API3 is a collaborative effort to build, manage, and monetize decentralized APIs (dAPIs) at scale. dAPIs are Blockchain- based, decentralized API services , built by combining multiple vendor-operated oracle nodes, into an aggregated feed without the use of a third party. Furthermore, to achieve an end-to-end decentralized system, both dAPI and the API3 project in general will have a completely open and direct governance model from the start, powered by API3 and API3 tokens KNIFE.

Highlights of API3

The core of API3 is Airnode. Essentially, Airnode is a cloud service that powers the API and makes it accessible on the Blockchain. This means that each API is run by the API owner, not a third party.

Airnode is a serverless oracle node, specially designed for API providers to operate their own oracles. Airnode has the following advantages:

• It does not require traditional companies to have knowledge of Blockchain to operate. 
• It does not require daily maintenance to update the operating system or monitor node uptime.
• It is built on the services that are priced on demand. This means that the node operator is only charged when their node is used. This allows any API provider to run oracle for free and only start paying after they start generating revenue.
• It does not require the node operator to trade cryptocurrencies. Its protocol is designed in such a way that gas payers request from the network.

The API3 DAO will govern dAPIs or feeds that include the aggregation of these operations. Oracles are operated by the API providers themselves. This means they will sign the response with their private key at the smart contract platform protocol level. This is the best proof that the data has not been tampered with. Furthermore, first-party oracles are private by default, since third parties cannot observe raw data from the API being processed. This allows them to be used in a variety of situations.

• First-party oracle : Data is pulled directly from API providers.
• Third-party oracle : There will be another party taking data from the API provider, then putting it on the Blockchain.

API3 is a project that applies First-party oracle mechanism, so the data will be guaranteed to be accurate and secure, eliminating the possibility of one person operating many nodes (Sybil attack), or many nodes linking together to provide false results.

In addition, First-party oracle eliminates middlemen so it will save a lot of costs. Specifically, for nodes to provide the right results, the rewards must be much higher.

API3 Tokennomics

Decentralized governance requires balanced and correct incentive mechanisms. In other words, managers should be rewarded for good results and penalized for poor results. The API3 token is designed to support this through three main utilities:

• Staking : Grants dAPI revenue and inflation rewards.
• Collateral : Support insurance services, protect users from damage caused by malfunction of dAPI.
• Administration : Grant delegate permissions directly in API3 DAO.

The Staking utility provides financial rewards for participating in API3. Mortgage utility for participants to share API3's operational risk and incentivize them to mitigate that risk. Finally, the admin utility provides participants with the ultimate tool to implement these incentives. 

Note that it is important that these three extensions coincide. All regulatory institutions must receive staking rewards for them to govern in a way that maximizes revenue. All regulatory institutions must have a portion of their funds used as collateral so that they can govern in a way that minimizes security risks. To achieve this, API3 will have a single Staking pool. Placing API3 tokens in this pool will grant delegate rights and reward staking. But at the same time, the staked tokens will be used as collateral to pay insurance claims as needed.

Key Metrics API3

• Token Name: API3 Token
• Symbol: API3
• Blockchain: Ethereum
• Standard Token: ERC-20
• Contract: 0x0b38210ea11411557c13457d4da7dc6ea731b88a
• Token type: Utility, Governance.
• Total supply: 100,000,000 API3
• Circulating Supply: 36,907.810 API3

Token Allocation 

• Ecosystem Builders: 35%.
• Founders: 30%.
• Public: 20%.
• Strategic Investors: 15%

Token release schedule

API3's initial supply is 100,000,000 tokens with the scheduled distribution of API3 tokens as follows:

• 30,000,000 (30%) to API3 founders was awarded for 3 years with a period of 6 months.
• 25,000,000 (20%) for API3 DAO to build the project's community and ecosystem within 3 years with a period of 6 months.
• 20,000,000 (20%) to public investors unlocked after the initial DEX offering.
• 10,000,000 (10%) for API3 partners for 3 years with a term of 6 months.
• 10,000,000 (10%) to seed investors granted for 2 years.
• 5,000,000 (5%) for pre-seed investors for 2 years.

Project Team & Partners

API3 was co-founded by three individuals, including:

• Heikki Vanttinen: Former CEO of CLC Group, the company built the oneycomb API Marketplace for the Chainlink network and ran multiple nodes. Previously, he held marketing roles at Zippie, Spacegrade and Equil Balance Labs.
• Burak Benligiray: A former Google Scholar. He is also a former CTO at CLC Group and Honeycomb.
• Saša Milić: Prior to joining API3, Saša Milić worked in the fields of software engineering, data science in venture capital, research and teaching in computer science, and data science throughout academia. and industrial.

Some of API3's Partners include Fantom, Glitch, Matic, Harmony...

API3 . Token Exchange

API3 tokens are being traded on Uniswap, MXC… and there is information that API3 tokens will be listed on Binance in the coming days. Immediately after this news was published on Binace's site, the price of API3 increased by more than 20%.

summary

The need to provide accurate external data to onchain environments is a necessity for creating robust decentralized applications, platforms, and markets. API3's oracle API Gateway provides a frictionless framework to help API providers do just that.

By reducing the role of middlemen and making it easier for data providers to operate their own nodes, API3 can bring in more revenue for data providers. This prospect could encourage even more vendors to adopt and join the decentralized landscape. 

With decentralized governance and a sophisticated DAO, API3's approach is to be a competitive solution when it comes to democratizing access to information within the Blockchain ecosystem.

And you, what do you think about the potential of this project? Let's discuss with TraderH4 here !

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