API3

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.

Since 2021, Coin-Labs.com has partnered with Bybit and is few of the highest-ranking of affiliate program contracts.
Therefore, if you sign up for Bybit through the button above, you will get the most discounted fee benefit and participation in a bonus event offering up to $500.

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

API3 utilizes first-party API providers, which don’t depend on middlemen.

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

dAPIs (decentralized APIs) can be safer as they don’t depend on third-party oracles and liability coverage is offered, which ensures investor confidence and reliable security.

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.

Hence, since API3 adopts a blockchain-agnostic approach, it can accommodate literally any network that has smart contract functionalities.

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 supply is not fixed, and its current circulating supply is over $90 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.

You will then have to pay ETH for some gas fees, so keep a few ETH in 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.

We Coin-Labs.com provides only objective information about API3.
Therefore, we are not responsible for the investment decision in API3 and the resulting loss.

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)

The table above shows the result of investment suitability evaluation for API3.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

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)
🐦 Twitter
🤖 Reddit
🎺 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