Welcome to API3, The Robust Ecosystem With Multiple Critical Parts.
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Introduction
The Decentralized Autonomous Organization (DAO), is an organization which is represented by rules encoded as a transparent computer program. DAO is controlled by the organization members, and not influenced by a central government. DAO is a common way of providing hands-off governance for blockchain projects, and one of the projects recently in the limelight is API3.
Application Programming Interfaces APIs is an ambitious one that is looking to tackle the security, authenticity, and trust conflict between third-party oracles and the trustless execution of smart contracts (Oracle problem) and find a way to connect the various APIs of data providers. By doing so, Smart contracts won't have to struggle to access dependable data.
API3’s litepaper stated goal of September 2020 is to allow decentralized versions of APIs to be built, managed, and monetized at scale. As blockchain technology plays an even bigger role in the economy — from decentralized finance to supply chain management — the team behind this project says it has never been more important for smart contracts to provide “timely, reliable real-world data.”
General Overview of API3
API is an acronym that stands for Application Programming Interface. API is a well-documented protocol that enables the transfer of data and services which have long been in use by web and mobile applications.
API3 is project is a potential solution looking to tackle the security, authenticity, and trust conflict between third-party oracles and the trustless execution of smart contracts popularly known as the "Oracle Problem".
Oracles are a form of middleware that sits as an intermediary between APIs and smart contracts thereby increasing costs and centralization. API3 intends to get around this problem by enabling API providers to operate their very own nodes.
Why API3 Is So Unique
The blockchain and crypto space is filled with projects that wish to bring blockchain technology to established industries like finance and gaming. This, however, is where API3 stands out as unique. API3 is aiming to fix the problems that have come out of the blockchain itself.
API3 aims to solve the connectivity problem associated with API, and they do this in a completely ecosystem-driven and decentralized way.
APIs are extremely important because they supply blockchains with off-chain data — without it, these decentralized ledgers wouldn’t have any clue about how much coins should be worth.
One example of an API is the method that’s used by the various cryptocurrency exchanges to provide data to the aggregators like Coin gecko, Coinbase Coinmarketcap.com.
API3 is now a reality as a result of the creation of light and robust middleware called Airnodes. It has a distinctive quality such that it can be deployed in minutes, enhancing transparency and substantially reducing transaction fees in the process.
How Secured Is The API3 Network?
Security is the least thing everyone should worry about in the API3 Network. API3 is an ERC-20 token. This means that it’s based on the Ethereum blockchain. Here, a huge amount of computing effort which is contributed by all the computers on the network — verifies and secures every transaction
This makes it virtually impossible for any third party to interfere.
Conclusion
Application Programming Interfaces APIs is an ambitious one that is looking to tackle the security, authenticity, and trust conflict between third-party oracles and the trustless execution of smart contracts (Oracle problem) and find a way to connect the various APIs of data providers.
API3 plans to solve the problems more effectively than the current oracle-based solutions.
API3 is building Airnode specifically because they don’t find the existing oracle nodes reliable, especially for a first-party oracle usage scenario. Their more reliable design extends to how the node communicates with the smart contract platform. Specifically, it uses multiple channels simultaneously, which allows it to be uniquely resistant against outages.
