For the past few years, blockchain technology has been expanding quickly, and it doesn’t seem like anything can stop it anymore. Crypto aficionados are constantly searching for the next big coin in this cutthroat industry with so many cryptocurrencies accessible. API3 is a special cryptocurrency token that has greatly caught the attention of investors.
The encryption algorithm known as Advanced Encryption Standard 13 (API3) is employed in the cryptocurrency sector. The National Institute of Standards and Technology (NIST) developed it. The Advanced Encryption Standard (AES) algorithm will be replaced by the new one as part of the project. A collaborative project called API3 aims to deliver standardized API services to smart contract platforms in a secure, decentralized, and reliable manner. The API3 DAO, a Decentralized Autonomous Organization (DAO), is in charge of running it.
WHY CHOOSE API3?
The API3 project addresses the difficulties that smart contracts encounter when trying to obtain trustworthy data. The project’s goal is to make it possible to create decentralized APIs that can be scaled up for management and revenue. The project’s staff has noticed that as usage grows, the impact of blockchain technology on contemporary society is increasing gradually but steadily.
Web and mobile applications use application programming interfaces (APIs), which are carefully documented and defined protocols. They can communicate with one another by exchanging information and services thanks to APIs. Online companies can now provide their services and data as monetizable service modules that developers can simply incorporate into their apps, greatly increasing efficiency in terms of cost and construction time. This is made possible by leveraging APIs as the channel.
The team behind API3 claims that it has never been more crucial for smart contracts to offer fast and accurate real-world data because blockchain technology plays such a significant role in the economy, from supply chain management to decentralized financing (DeFi).
Notably, Heikki Vanttinen, Burak Benligiray, and Saa Mili established API3. In September 2020, the team released the whitepaper. The platform’s native utility token, API3, can be used for a number of things, including controlling the API3 DAO and casting votes on project upgrades.
Now is a fantastic moment to invest in API3 because it has effectively established itself as a cryptocurrency project with tremendous growth potential.
IS API3 GOING TO SKYROCKET IN 2023?
Microsoft, Google, and Facebook are just a few of the organizations and businesses in the crypto industry that presently employ API3, which is thought to be more secure than AES. Its main goals are to give the crypto industry a better secure encryption method and aid in the transition to newer technologies. Additionally, its inclusion in upcoming iterations of the Bitcoin protocol is under consideration.
The API3 network seeks to address connection, one of the main issues with APIs. By allowing APIs to operate their own nodes, API3 intends to further the decentralization of smart contracts and increase data transparency to the source of accurate information.
The popularity of API3 is anticipated to soar in the future for all these and more factors.
FACTORS THAT HELP API3 SURGE TO NEW HEIGHTS SOLVING THE BLOCKCHAIN ORACLE PROBLEM
The Blockchain Oracle Problem is the API3’s major contribution. Oracles are merely a type of middleware that is supposed to be used between smart contracts and APIs, increasing the centralization and cost of the system as a whole. Simply enabling API users to manage their own nodes is how API3 proposes to address this issue.
With the standardization and ease that come with API connectivity, APIs are claimed to represent a widely accepted standard in app development and software. API3 is stated to offer a mechanism for the world’s data to be fed into the blockchain apps.
RELIABLE AND SECURE REAL-WORLD DATA
Data has always been the most valuable asset and is essential to the operation of blockchain’s smart contracts. All other blockchain products pass through them. Because of this, it is essential that data utilized by smart contracts be trustworthy, up-to-date, and given in real-time, and API3’s solution can make that possible.
BOTTOM LINE
The most cutting-edge method of supplying trustworthy data to smart contracts in a transparent, effective, and affordable manner may be API3. Its contributions to the industry may help the crypto industry find new use cases or make use of already existing ones.
Additionally, blockchain oracles, which are presently thought to be the primary method for transferring data from the outside world to the blockchain, might be entirely replaced if time demonstrates that API3’s solution is not only sophisticated but also capable of being deployed on other blockchains.
Experts now assume and anticipate that API3 will soar in 2023 and beyond because of all these variables. For long-term benefits, take into account including this expanding cryptocurrency in your investing portfolio.
