### What Is API3 (API3)? API3 is a cryptocurrency that enables decentralized API services. It is designed to connect traditional application programming interfaces (APIs) to blockchain networks in a decentralized and trustless manner. This enables smart contracts to securely access and interact with real-world data, providing a more efficient and reliable way to incorporate off-chain information into on-chain operations. API3 aims to address issues of centralization and reliability in data feeds by allowing API providers to run their own nodes, known as oracle nodes. By doing so, they become first-party oracles, which increases data transparency and reduces the risk of manipulation and inefficiencies related to third-party middlemen. For more detailed information about the API3 cryptocurrency, its market performance, and historical data, please refer to the Eulerpool platform.
Smart contracts frequently encounter difficulties in accessing reliable data, with application programming interfaces (APIs) being proposed as a potential solution to this issue. API3 aims to facilitate the creation, management, and monetization of decentralized versions of APIs at scale. As blockchain technology increasingly influences the economy — from decentralized finance to supply chain management — the team behind this project emphasizes the growing need for smart contracts to supply “timely, reliable real-world data.” The whitepaper for API3 was introduced in September 2020, addressing the primary issue currently associated with APIs: connectivity. Presently, smart contracts lack a direct method to connect with APIs to access the latest data, resulting in a surge in the popularity of oracles. While oracles have partially addressed the problem, the industry continues to contend with the “Blockchain Oracle Problem.” Oracles function as middleware that operate between APIs and smart contracts, leading to increased costs and centralization. API3 aims to circumvent this issue by empowering API providers to operate their own nodes. API3’s token became available in early December following a token sale that raised tens of millions of dollars, according to Eulerpool.