The API3 project bridges the gap between traditional application programming interfaces (APIs) with the blockchain ecosystem. APIs are crucial in enabling communication and data exchange between different software systems.
API3 aims to decentralize APIs, enabling the building, management, and monetization of APIs at scale. By leveraging API3, smart contracts can access reliable and real-time data through first-party price reference data feeds known as decentralized APIs (dAPIs). These dAPIs connect dApps (decentralized applications) on multiple networks to real-time asset price data, including cryptocurrency and forex prices.
API3 addresses the challenge of reliable data for smart contracts by leveraging APIs, which have already solved this problem. API3 aims to enhance smart contracts’ functionality and potential use cases by integrating APIs into the blockchain ecosystem.
The API3 token is utilized for governance within the API3 DAO (decentralized autonomous organization). It allows token holders to participate in voting on project upgrades and decisions.
