In this article we intend to introduce API3. As decentralized applications have become more functional, the need for oracles is also being increased. In a nutshell, Oracles are the intermediary for transferring information from real world to the blockchain world. For example, a prediction application which works on Ethereum Blockchain needs to receive events final data. Oracles will transfer these data to the application. ChainLink is one of the biggest oracles.
In addition to ChainLink, there are also other new similar projects. API3 is one of the newest and the most potent projects in this field which we are going to discuss it shortly in this article. You can take a look at the complete article as well as its technical comparison to ChainLink on Wallebi Asia blog. Its link is now available on Instagram today’s story.
In blockchain world, dApps such as DeFis need to receive the real world data which will be provided by APIs. Now, ChainLink according to its structure will take these data and send them to dApps in a distributed manner. However, there is no direct connection between dApps and APIs. This has made some challenges. API3 project released its whitepaper on September 2020 and aims to solve these challenges. This way, API intends to provide a more transparent path to transmit requested data.
This project has its native token also called API3. There are 13 million of API3 tokens in circulation and the total supply is planned to reach 100 million at all. API3 market cap is currently about $50 billion. This is while its rival market value, ChainLink is more than $9 billion. To date, API3 provides the most powerful solution for connecting blockchain-based applications to APIs. Therefore, besides other items, it worth following this project too.