What are Managed dAPIs? One of crypto’s core mantras is “Don’t trust, verify.” In the rapidly evolving landscape of the Web3 data economy, finding reliable and transparent ways to connect real-time market data with smart contracts has become paramount. Decentralized APIs (dAPIs) are first-party data feeds that link
Oracles provide a secure and reliable way for smart contracts to access real-time market data, which is essential for various DeFi applications. API3 has developed an oracle node that is operated by the API Provider, removing the intermediary node layer, or middleman. This change in oracle architecture creates a scalable
Oracle extractable value (OEV) refers to oracles making use of their position to capture value that would otherwise have gone to third parties. As a simple example, say we have an ETH/USD price data feed with the value of 1000 and the deviation threshold of 1% (meaning that the
In this series, we have looked at first party oracles and quantifiable security as major aspects of the API3 solution to the API Connectivity Problem. In part 7, we highlight how the organization of API3 as a DAO benefits the project, API providers, and dApp developers. “There’s a place
As the last post in the series, “Getting APIs on the Blockchain”, we will be combining all of what we’ve covered in detail to understand API3’s solution to the API Connectivity Problem. Internal Aspects dAPIs are managed first-party oracles for dApps that ensure transparency at the data source
This is a replacement entry for the third part in the API3 series, “Getting APIs on the Blockchain”. The previous pieces introduced the definition and context of contemporary APIs. Thousands of years ago, oracles were seen as agents that bridged the divine and mortal realms. Then in 1938, Alan Turing
First-party oracles are on-chain entities operated by real world businesses — API providers — to provide services on Web3. Understandably, the primary motivation of the businesses that participate in this ecosystem is to monetize their services. An effective monetization model benefits the first-party oracle solution in two ways: * API providers will self-integrate,
Decentralized Autonomous Organizations (DAOs) are an abstract concept. They’re organizations based on blockchain/Web3 principles such as being transparent, permissionless, and decentralized but one DAO can be very different from the next. Here we’ll discuss what it means to be part of the API3 DAO and community. API3’
A brief introduction to the hierarchy of layers that make up the API3 first-party oracle technology stack. As Burak stated in dAPIs: APIs for dApps, “the goal of API3 is to build, manage and monetize dAPIs at scale” … “which means creating a dAPI economy that is comparable to Web3 as
As discussed in the whitepaper, the goal of API3 is to “build, manage and monetize dAPIs at scale”. In this regard, all of the development that we’ve been doing is because the existing tools fall short of being able to support dAPIs as we envision them. What exactly are
Web3 applications are built on smart contracts, which can only use data that’s already on the blockchain. They can’t just call Web APIs, which are off-chain, to access data like traditional applications do. Oracles are what we call the software or people that put real-world data on-chain so
Smart contracts, which run on blockchain, need off-chain data but they can’t call Web APIs like regular web applications. With smart contracts, many nodes in a distributed network do the same computation on the same input data at the same time. They must agree on the results in order