Buy API3

Blockchains and smart contracts need external data to function optimally. For example, a DeFi application needs to know the current price of an asset to be able to make calculations. The problem is that smart contracts can only access data that is already on the blockchain. This is where API3 provides a solution to the 'oracle problem'.

Oracles connect smart contracts to external data, such as price information, by bringing it to the blockchain. However, many existing oracles are centralized, making them vulnerable to attacks, errors, or manipulation. This can lead to unreliable data, with potentially detrimental consequences for the operation of smart contracts.

API3 solves this problem by developing decentralized APIs (dAPIs). Unlike traditional oracles which rely on third parties to provide data, API3 uses so-called “first-party oracles.” This means that the data comes directly from the original source, the API providers. This provides increased security, transparency, and lower costs. A key component of API3 is the Airnode technology, which enables API providers to easily make their data available to smart contracts without the need for third parties.

The mission of API3 is to make existing APIs accessible to the decentralized web, also known as Web 3.0. This means that data, such as weather information or stock prices, that are usually used in centralized applications, can now also be used in decentralized applications. API3 thus offers a solution to the problem that many APIs are not compatible with blockchain technology.

With Airnode, API providers can make their data available for use in smart contracts without requiring any blockchain knowledge. This lowers the barrier for traditional API providers to participate in the Web 3.0 ecosystem. Furthermore, API3 offers the ability to receive payments in both cryptocurrency and fiat, contributing to the wider adoption of the platform.

Who founded API3?

API3 was launched in December 2020 and was co-founded by Heikki Vänttinen, Saša Milić, and Burak Benligiray. These founders have extensive experience in both the blockchain and software industries. Heikki Vänttinen, a well-known face within API3, has a background in marketing and blockchain technology and is the co-founder of CLC Group, a blockchain consultancy company. The API3 project is governed by a Decentralized Autonomous Organization (DAO), meaning that the community of API3 token holders governs the project. The team consists of various experts in the fields of blockchain, software development, and decentralized finance (DeFi).

API3 provides several useful features and applications for both developers and end users:

• Access to external data for smart contracts: Developers can use API3 to bring real-time data such as pricing information or weather conditions directly to smart contracts, without relying on centralized oracles.
• Increasing the security of dApps: API3 uses first-party oracles, which minimizes the chance of manipulation or attacks by intermediaries, making decentralized applications more secure.
• Lower costs for developers: By eliminating middlemen, API3 reduces data collection costs and gas fees, making decentralized application development more affordable.
• Monetization for API providers: API providers can easily sell their data to decentralized applications via Airnode, without the need for technical blockchain knowledge.

API3 functions by leveraging a network of decentralized APIs (dAPIs) managed by first-party oracles. These dAPIs bring reliable, cost-efficient real-world data to smart contracts.

At the heart of API3 is Airnode technology is a serverless and easy-to-deploy oracle solution that enables API providers to transform their existing APIs into dAPIs. What sets Airnode apart is that it is managed directly by the API providers themselves, without the involvement of third parties. This increases security and reduces costs by bringing data directly from the source.

API providers do not need to manage complex infrastructure or have a deep knowledge of blockchain technology. This simplicity lowers the barrier to entry, allowing traditional API providers to easily offer their services to the decentralized Web 3.0 ecosystem.

Decentralized governance

API3 is governed by a Decentralized Autonomous Organization (DAO). This means that the community of API3 token holders has a say in the operation and development of the platform. Users can stake their API3 tokens to gain voting rights and contribute to the governance of the platform. This governance model provides a transparent and decentralized governance structure, without relying on a centralized entity.

Security and transparency

By using first-party oracles, API3 offers a higher level of transparency and security than traditional oracles. Eliminating intermediaries reduces the chance of data manipulation or errors, which is essential for the reliability of decentralized applications.

A solution to the oracle problem

API3 solves the oracle problem by providing direct access to external data via dAPIs. Instead of relying on intermediaries, API3 provides a direct connection between API providers and the blockchain. This not only makes data more secure and reliable, but also reduces costs. Thanks to Airnode technology and its decentralized governance model, API3 provides a secure, transparent, and efficient solution for delivering external data to decentralized applications.

The API3 token plays a crucial role within the API3 ecosystem. It primarily functions as a governance token, meaning that token holders have voting rights within the API3 DAO. This gives them influence over important decisions regarding the development and governance of the platform. Additionally, users can stake their API3 tokens to participate in the insurance mechanism, which protects decentralized applications (dApps) from potential outages of the decentralized APIs (dAPIs). By staking, token holders can also earn staking rewards.

Additionally, the API3 token is used as a means of payment for developers who want access to dAPIs. With a maximum supply of 100 million tokens, API3’s circulation is limited, which can contribute to the token’s value and scarcity in the long term.

Staking API3 tokens is carried out through the API3 DAO platform. By staking your tokens, you not only receive weekly staking rewards, but also gain voting rights within the DAO. This means you can participate in the decision-making process on important changes and future developments within the platform. The staking process is simple: you move your tokens to the staking contract where they are locked up for a predetermined period of time. In return, you receive weekly inflation rewards in the form of API3 tokens, allowing you to grow your holdings.

Staking can also be combined with API3's insurance mechanism, which adds additional security to the platform and protects dApp developers from risks such as outages or data inconsistencies in dAPIs.

API3 distinguishes itself through the following unique features and properties:

• First-party oracles: API3 uses oracles managed directly by API providers, which provides greater security and transparency compared to third-party oracles.
• Airnode technology: Airnode provides a serverless, maintenance-free solution for API providers to make their data directly available to the blockchain, without the need for technical blockchain knowledge.
• Decentralized governance via DAO: The project is fully managed by the community via a DAO, making governance transparent and decentralized.
• Solving the oracle problem: API3 eliminates intermediaries by moving data directly from the source to the blockchain, resulting in lower costs and less chance of manipulation.
• Flexible payment options: API providers can choose to receive payments in both fiat currency and cryptocurrency, making the platform more accessible to a wider audience.

You can buy API3 (API3) on Bitvavo. Our platform is suitable for both novice and experienced crypto traders. Follow these steps to buy API3 via our website or app:

1. Create an account or log in to your existing Bitvavo account.
2. Make a deposit by clicking "Deposit".
3. Visit the API3 purchase page to see the current price.
4. Enter the amount in euros you wish to invest or select the number of API3 tokens you want to purchase and click "Buy".

The price of API3 tokens is ultimately determined by the price at the time of purchase. After purchase, the tokens are immediately added to your Bitvavo account, where you can safely manage and trade them if desired.

If you want to keep your API3 tokens safe, Bitvavo offers a reliable solution where the majority of the funds are stored offline in cold storage. For extra security, it is highly recommended to enable two-factor authentication (2FA). This adds an extra layer of security to your account, requiring you to enter a verification code in addition to your password when logging in.

You also have the option to store your API3 tokens in an external software or hardware wallet. To do this, you must first verify the wallet address within your Bitvavo account. Once this is done, you can transfer the API3 tokens to your personal wallet.