API3 was launched on HotsCoin on January 22. API3 is an oracle solution dedicated to allowing smart contracts to access real-world data. Through its innovative design, especially through the use of Airnode, API3 attempts to solve some of the problems of traditional oracle solutions, such as centralization, high cost, and data trustworthiness. This report will provide a comprehensive analysis of API3, covering its basic information, token economics, key events, solutions, team and future development. API3 is currently open for trading on HotsCoin.
Basic Information
Token information:
Circulation: 86,421,978 API3
Total supply: 125,324,588 API3
Circulation market value: $194,340,564.825
Fully diluted market cap: $281,822,422.75
Key events:
2020-11-12: API3 completed a US$3 million seed round of financing, with a valuation of US$30 million
API3 project background
1. API3 logo
API3 is a project dedicated to solving the oracle problem. In blockchain application development, APIs play an extremely important role, allowing developers to easily integrate various data into their applications. This abstraction makes development more efficient, but the problems with traditional oracle solutions have become increasingly apparent.
2. Oracle problem
The oracle problem is a core problem faced by smart contracts, because smart contracts often require access to off-chain data. The core of this problem is that when on-chain contracts need to use off-chain data, how to introduce these data onto the chain in a decentralized and trustless manner becomes a complex challenge.
3. Chainlink issues
Although Chainlink is currently one of the most well-known oracle solutions, issues inherent in its design such as node rent-seeking, data monopoly, and inability to manage the provision of data have created a need for a better solution.
API3 solution
1. dAPI decentralized blockchain API network
API3 solves the problems of traditional oracle solutions by introducing the dAPI (Decentralized Blockchain API) network. The network allows API providers to run their own nodes, eliminating the middle layer, reducing inflation, promoting decentralization, and providing transparent data source management.
2. Airnode solution
Airnode is a solution proposed by API3, aiming to achieve decentralized access to off-chain API data. By allowing API providers to directly become nodes, API3 provides a simple and elegant solution that not only increases decentralization but also ensures transparency and trustworthiness of data providers.
Airnode operation method
Airnode is an off-chain system developed on the Ethereum network that utilizes Ethereum nodes to provide data to aggregator contracts. This design not only simplifies operations for API providers, but also provides a way to provide data directly on the blockchain, enabling decentralized and frictionless operations.
API3 Token Economic Model
1. Token use cases
API3 tokens have multiple use cases in the ecosystem, including staking, governance, collateral, and payments. Stakeholders can obtain rewards by staking API3 tokens and participate in on-chain governance. In addition, the staking pool can be used as collateral for on-chain insurance, while API3 tokens are also used to pay for services.
2. DAO governance
API3 uses a Decentralized Autonomous Organization (DAO) for governance, giving token holders a say in the development and security of the network. Governance voting directly affects economic incentives. Stakeholders receive a portion of dAPI revenue through voting, and the pledged tokens are also collateral for on-chain insurance.
team introduction
API3 is composed of three founders, and the team members have deep experience in the field of language machines, oracles and blockchain. The team leader Heikki Vanttinen is a senior language machine professional, and the other two co-founders have experience as Google scholars and chief technology officers of CLC Group and Honeycomb respectively.
Token Allocation and Price Performance
The total supply of API3 tokens is 100,000,000, with a total private and public sale of 30,000,000, of which only public tokens are unlocked, other tokens will be unlocked according to a 2-3 year vesting schedule. The API3 token went on public sale in December 2020, starting at $0.30 and going up to $2.00, with early investors reaping returns of approximately 1,300%.
in conclusion
API3 proposes an innovative solution that attempts to solve the problems existing in current oracle solutions. By introducing the decentralized blockchain API network and Airnode solutions, API3 increases decentralization and transparency, reduces costs, and improves the trustworthiness of data. Its token economic model is reasonable and encourages users to participate in the governance of the network and the construction of the ecosystem. However, close attention needs to be paid to the competitive pressures it faces and how it differs from other oracle solutions to more fully assess its future development potential.
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