What is API3?
The API3 token, or just API3, is a utility token powering the API3 project. The latter is a decentralized API (dAPI) services provider for Web 3.0. Collaboration is the backbone of this project.
API3 is based on an ERC-20 token standard, meaning, it’s deployed on the Ethereum blockchain.
There are 3 core functions associated with the API3 token:
- Governance. All API3 holders can participate in the governance of the API3 project by simply staking their tokens in the service coverage collateral pool. Governance processes are executed with the help of a decentralized autonomous organization (DAO) called the API3 DAO. One staked API3 token equals 1 vote;
- Staking. Besides granting governance rights, staking API3 tokens enables users to earn inflationary staking rewards. Most importantly, users who stake their tokens participate in the process of securing the network;
- Collateral. The staked tokens are locked in an API3 staking pool, where they serve as collateral against dAPI malfunction.
Anyone can acquire API3 tokens via major supported decentralized and centralized exchanges. You can find our recommended exchange list in the section above.
There is a max cap of 100,000,000 API3 tokens. Since there is a limited supply of native tokens, it’s possible that as API3 becomes more scarce, the API3 price will increase.
They have been distributed as follows:
- 30,000,000 - Founding Team;
- 25,000,000 - API3 Ecosystem Fund;
- 20,000,000 - Public Token Distribution;
- 15,000,000 - Seed Investors with a lock-up period;
- 10,000,000 - Strategic Partners with a lock-up period.
As you can see, 20% of the total supply was publicly distributed on Mesa DEX. The public token distribution started on November 30th and ended on December 14th of 2020. During this time, the API3 price fluctuated from $0.30 to $2.00.
Since API3 is a cryptocurrency, its price tends to fluctuate. In order to make an informed purchase decision, you can have a more in-depth look at the API3 price history or the current API3 price on the graph above.
What are the Main Features of API3?
As discussed in the What is API3 section, API3 is a Web3-centric platform that creates dAPIs. It also bridges smart contracts to API services.
One of the primary goals of the project is to revolutionize the API market by eliminating the need for middlemen in preparation for Web 3.0.
Just to refresh your memory, API stands for Application Programming Interface. This software interface plays a key role in the process of data sharing. When it comes to blockchain systems, APIs are responsible for providing accurate off-chain data.
The main difference between regular APIs and decentralized APIs is that dAPIs are native to the blockchain. As such, decentralized APIs are completely free of an intermediary influence which, in turn, minimizes the fees. Most importantly, dAPIs can directly connect with smart contracts.
In addition to eliminating intermediaries, API3 aims to address the issue of data oracles feeding corrupt information to blockchain systems.
This is where Airnodes come in. An Airnode is a type of oracle node that hardly requires any management or maintenance. Its main function is to enable APIs to run their own oracles by enabling communication with smart contracts.
Airnodes can be seamlessly integrated into the majority of the platforms already used by these API providers. Besides being native to the blockchain, Airnodes are also entirely serverless. This means that they’re a type of both cloud-native and blockchain-native technologies.
API3 is an open-source project, meaning, its codebase is publicly available for anyone to review.
Who Developed API3?
The API3 crypto project was launched in late 2020. It’s a blockchain-based company co-founded by a trio of entrepreneurs Heikki Vänttinen, Burak Benligiray, and Saša Milić.
Besides API3, Heikki Vänttinen also founded CLC Group - a blockchain-driven lab where he served as a CEO. Other blockchain projects that Vänttinen contributed to include Zippie, Spacegrade, and Equilibrium Labs. He’s currently working as a strategist at API3.
Burak Benligiray holds a BSc, MSc, and Ph.D. in Electrical and Electronics Engineering. Prior to the launch of API3, he worked at Visea Innovative and CLC Group. He’s currently taking the CTO position at API3 and is responsible for integrating ChainAPI, a CLC Group solution, into the project.
Saša Milić is a software engineer with years of experience at some of the biggest players in the tech industry such as Facebook and Rakuten Kobo. She holds a BS, MS, and a Ph.D. in computer science from the University of Toronto.
Milić is an avid crypto enthusiast specializing in data science and cryptocurrency research. API3 is the first blockchain-based project that she co-founded.
The founding team raised around 3,000,000 US Dollars during an Initial Coin Offering (ICO) event.
API3 has managed to establish some solid partnerships with companies such as Polygon, Solidity Ventures, Fantom, CoinFund, and Fantom, among many others.
