Could API3 Become The New Chainlink?
What is an API?
API stands for Application Programming Interface. APIs may be utilised by online companies, such as eBay, Google, Facebook and millions of other online companies to openly provide tools for developers who need to create applications based on their technologies. APIs may also be used for sharing or embedding content from other internet sources, such as data feeds. Developers and software engineers can easily insert APIs into their code to greatly increase the time it takes to develop complex applications.
So, what is the problem?
Most existing APIs at the time of writing however, are not compatible with the blockchain and decentralised applications and herein lies the problem. This problem has been referred to as “The Oracle Problem”.
The oracle solution
Enter a company called API3, the oracle solution provider. API3 design oracle protocol and oracle nodes specifically for each API provider directly, without the need for a third-party operator.
API3 have come up with a solution to this oracle problem, with an API gateway to the blockchain called Airnode. Airnode, once set up for the API provider, will continue to run without further configuration or maintenance – “It will sustain itself until it is taken down”, says Burak Benligiray on the official API3 medium website.
Taking out the middlemen from the supplied data chain, eliminates possible tampering or denials of service, also making the supplied data less vulnerable to attacks.
The guys behind API3 used to run some of the top oracle feeds and nodes with Chainlink, so are well experienced in the oracle space. During their time supporting oracles feeds at Chainlink, they noticed some short comings with the third party oracle solution and aim to improve upon that with API3.
API3 launched their tokens at the end of November. There is a maximum supply of 100,000,000 and the current market cap is $45,679,210. Just for comparison, Chainlink’s market cap, who are also in the oracle space, is currently $5.2 billion. It is unlikely that API3 will take Chainlink’s crown in the oracle space, but there is significant room for growth. API3 has some signifiant partners with deep pockets, such as Pantera and Digital Currency Group. The tokens are currently trading at $2.40