API3 (API3)

Data Oracles

API3 provides first-party oracles that connect real-world data directly to smart contracts. This means it delivers reliable, transparent data feeds without middlemen.

Decentralized Applications (dApps)

API3 helps dApps get accurate external data, which they need to operate correctly, such as price feeds, weather info, or event results.

Monetization for Data Providers

API3 allows data providers to earn rewards by sharing their data with dApps, creating a new way to monetize APIs in the blockchain space.

Oracle Extractable Value (OEV) Capture

API3 uses special mechanisms to reduce value lost to external actors and instead returns it to dApps and data providers, improving efficiency and fairness.

For more details, visit the official website: api3.org

Pros of API3

• Direct API Integration: API3 connects real-world data providers directly to smart contracts, removing middlemen and improving transparency.
• Decentralized Oracles: It offers decentralized APIs (dAPIs) that provide reliable, real-time data to decentralized applications (dApps).
• DAO Governance: API3 is governed by a decentralized autonomous organization, giving token holders a say in project decisions.
• Staking Rewards: Token holders can stake API3 tokens in an insurance pool to earn weekly rewards.
• Cost-Effective: API3 aims to reduce costs compared to traditional oracle solutions by eliminating intermediaries.
• Growing Ecosystem: It supports over 200 data feeds across multiple blockchains, making it versatile for various use cases like DeFi and supply chain.

Cons of API3

• Market Volatility: Like most cryptocurrencies, API3’s price can be volatile and influenced by broader market trends.
• Competition: Faces strong competition from established oracle projects like Chainlink.
• Smaller Market Cap: Compared to some competitors, API3 has a smaller market presence, which can affect liquidity and adoption speed.
• Early Stage: The project is still developing, so long-term success depends on adoption and ecosystem growth.

For more details, visit the official website: api3.org

Founders of API3

API3 was founded by three people:

• Heikki Vänttinen: He has a background in blockchain and smart contract solutions and has been involved in projects like CLC Group and Zippie.
• Burak Benligiray: Known for his work on ChainAPI and blockchain infrastructure.
• Saša Milić: Has experience as a system and network engineer and contributes to the technical development of API3.

These founders came together in 2020 to create API3, aiming to connect traditional APIs with blockchain applications.

Seed and Early Investors

API3 raised $3 million in a seed round led by Placeholder. Other notable seed investors include Solidity Ventures, Equilibrium, Rarestone Capital, Block0, Pantera Capital, Accomplice, CoinFund, Digital Currency Group, and Hashed.

Institutional Investors

There are about 16 institutional investors backing API3, including Placeholder, Accomplice, Digital Currency Group, and The Spartan Group.

Funding Rounds

API3 has completed multiple funding rounds, with the seed round being the most publicized. The seed round involved 16 investors and raised $3 million.

These investors are mostly venture capital funds and crypto-focused investment firms supporting API3’s mission to build decentralized APIs and solve the blockchain oracle problem.

Halal Status of API3

• Yes, API3 is considered halal according to available Shariah compliance screenings.
• This is because API3 operates as a decentralized oracle network providing data feeds to decentralized applications, which aligns with Islamic finance principles.
• Islamic finance experts have reviewed API3 and found no elements that contradict Shariah law, such as interest (riba) or gambling (maysir).

For more detailed and personalized advice, consulting a qualified Islamic scholar is recommended.