API3, the First-Party Oracle Solution Challenging Chainlink



By Baili Zhong and Lewis Park

Disclaimer: Not Financial Advice

Markets have had a healthy retracement as of late, and it could not be a better time to look for coins to invest in. One of the ecosystems that needs to be closely monitored is the oracle solutions. This includes the likes of Chainlink, amongst other projects. However, one project that should not be ignored is API3. The reason why API3 should be under everyone’s radar is because it is the first major project that utilizes first party oracle solution. To elaborate the importance of API3, we need to look at traditional solutions in the form of Chainlink.

Traditional solutions, such as those implemented by Chainlink, have API providers go through two to three oracles where Chainlink acts as the middleman. More oracles mean more decentralization but higher gas fees. API3 has no middleman since it utilizes something called an Airnode, which can be thought of as “The API gateway” for blockchains.

This has the advantage of allowing companies already familiar with cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform to easily integrate their systems, rather than starting as a novice working on blockchain nodes.

Cloud computing and services give you all the functionality you want for making applications, having a platform, and doing all the IT stuff for you. This gives API providers direct communication with smart contracts. The users don’t need to deal with any maintenance. For example, you can use your google drive and share google documents without having to write any programming code. All you need to worry about is using the platform instead of maintaining and upgrading it.

So, definitely do your own research. Heikki Vanttinen, the co-founder of API3, has done extensive work in the sector of oracle solutions. In fact, a lot of the developers who are working for API3 have had previous experience with Chainlink. They also know the capabilities and limitations of Chainlink. We see this project having a massive amount of potential to go to a meteoric rise in terms of price. Right now, the market capitalization is close to 30 million, and there is only a total supply of 100 million tokens. We feel that Chainlink will do well, but API3 could outperform Chainlink in the short, mid, and even long terms.

If you want a more in-depth report about API3, then continue reading here.



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