The API3 project was initiated in 2020. Its goal is to eliminate connectivity issues between smart contracts and APIs (application programming interfaces) by enabling the creation, management, and monetization of decentralized APIs at scale.

Currently, smart contracts cannot directly connect to APIs, fueling the rise of oracles as intermediaries between APIs and smart contracts. Oracles increase costs, centralization, and inhibit API providers from running their nodes. API3 empowers API providers to operate their own nodes, thus providing superior data transparency and reliability directly from the data source. At the core of API3's innovation is Airnode, a lightweight and robust middleware that can be easily deployed, ensuring transparency and significantly reducing transaction fees.

API3's native token is API3. It facilitates utilities such as staking, governance, and collateral.