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GRAND CAYMAN – (BUSINESS WIRE) – API3, a decentralized API network (dAPI) that allows data providers to become their own blockchain “ oracles ”, closed $ 3M in a private fundraising round led by Placeholder and with the participation of Pantera, Accomplice , CoinFund, Digital Currency Group, Hashed and more. When live, API3 will allow off-chain API data and service providers to connect their APIs to the blockchain without the use of intermediaries.
An application programming interface, or API for short, is an incredibly common protocol in web and mobile applications that allows them to interact with each other, sharing data and services. However, real-world companies cannot interact with blockchain applications because such applications can only interact with information that is accessible and agreed upon by all nodes in the network. Until now, “Oracles” has solved this problem by acting as a centralized third party, introducing vulnerabilities, costs, ineffective redundancies and a lack of transparency.
API3 proposes to solve this API connectivity problem through the new “decentralized API” paradigm consisting of “first party oracles”. Allowing traditional API vendor companies to become their own oracles without third party intermediaries means they will be able to monetize their services cost-effectively, securely, and with control of how their data will be used. . Decentralized APIs, which are networks of these first-party oracles that are governed in a decentralized manner by API3 DAO, will provide an optimal reduction in trust.
“Crypto’s largest Oracle system by network value, Chainlink, is comprised of data resale intermediaries, where the source and quality of the data are suspect,” said Chris Burniske, Partner at Placeholder. “While heavily commercialized, Chainlink is not sufficiently designed or maintained to remain a long-term solution to DeFi’s cryptocurrency or information needs, and those who rely on Chainlink do so at the risk of their users. Enter API3.
“With its Airnode design, API3 makes it simple for primary data providers to channel their information into cryptocurrencies with zero blockchain expertise. This means that the reputation and quality of existing data providers can bring into cryptoland, simultaneously enabling these entities to profit from crypto participation. Furthermore, the DAO organizational structure of API3 provides a framework for truly decentralized on-chain data feeds, which the team calls dAPI. ”
“We couldn’t be more excited about the team of investors who have decided to support API3 as we work to solve the blockchain API connectivity problem, which is a key challenge for our entire space,” said Heikki Vänttinen, co-founder of API3. “We are confident that the API3 solution will not only enable smart contract developers to build applications that might have previously been unthinkable, but will also provide API providers with a more direct, transparent and incentive-oriented way to sell their data and services to the Web 3.0. It is our honor to work on this with some of the best known investors and thought leaders in our industry, led by Chris Burniske’s Placeholder. ”
To manage the decentralized dAPI network and to improve the current decentralization and trust minimization standards employed in governance of existing Oracle solutions, dAPIs composed of API3 will be governed comprehensively and transparently by a decentralized autonomous organization (DAO) of API consumers , service providers, industry experts and partners.
API3 raised $ 3 million in its initial fundraising round to support technology development and the growth of its ecosystem. The round was also supported by Solidity Ventures, Equilibrium, Rarestone Capital and Block0.
Soon, API3 will launch the alpha version of Airnode, a cloud services infrastructure that acts as a “blockchain gateway” for web and mobile applications. The project will host hackathons using Airnode technology in the coming months.
More information on www.api3.org
