API3 is an extremely familiar name in the field of cryptocurrency and blockchain in particular.
What is an API3?
Currently, in the era of “throne” cryptocurrency, the demand for decentralized application (dApp) is also increasing rapidly and strongly.
In order to interact with the real world, it is important for decentralized applications to have access to services that provide APIs.
API is an intermediary method used in connecting applications and libraries together, serving the purpose of providing data.
However, to put that data on the blockchain is something that is out of control, because the traditional API normally does not work with smart contract.
Therefore, it is completely incompatible with decentralized applications.
That is also why API3 was born, as a perfect solution to all of the above problems.
It is a platform that allows smart contract-based decentralized applications to access real world data and services through other parties' APIs.
In this case, the decentralized API generation would be called dAPI.
dAPI is built by combining multiple vendor-operated oracal nodes into an aggregated data source, possibly without the need for the presence of any third parties.
What problems does API3 solve?
API3 was created with the purpose of solving the connection problems of traditional APIs.
When building a new program or application, developers often rely on APIs to transfer data sets as well as a specific service into the project, skipping the step of coding from scratch.
Besides, API is also considered as one of the very important factors for many applications and software that people are still using every day.
However, almost every API in the past was built for the legacy ecosystem of centralized financial data, services, and applications.
This makes them incompatible with the world of decentralized application and blockchain in general.
The arrival of API3 has made traditional APIs compatible with the decentralized web 3.0 standard.
At the same time, not too much burden on API providers as well as dApp developers.
Pros of API3
First, you need to refer to the following two synopsises:
- First-party oracle: The data will be obtained directly from the API providers.
- Third-party oracle: Another third party will take the data from the API providers and put them on the blockchain.
Because API3 is a first-party oracle platform, all data will be guaranteed to be accurate and absolutely secure.
Besides, it also eliminates the possibility of one person operating multiple nodes (sybil attack) or having multiple nodes linked together and providing false results.
Not going through intermediaries also helps developers save significant costs.
