How To Buy API3 (API3)?

A common question you often see on social media from crypto beginners is “Where can I buy API3?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy API3 on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports API3 (API3)

First, you will need to open an account on a cryptocurrency exchange that supports API3 (API3).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase API3 (API3) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy API3 (API3)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for API3 (API3) or API3 (API3) trading pairs. Look for the section that will allow you to buy API3 (API3), and enter the amount of the cryptocurrency that you want to spend for API3 (API3) or the amount of fiat currency that you want to spend towards buying API3 (API3). The exchange will then calculate the equivalent amount of API3 (API3) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of API3 (API3) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is API3 (API3)?

Launched in December 2020, API3 is a platform that enables blockchain-based decentralized applications (dApps) to access blockchain-external, real-world data and services via application programming interfaces (APIs). APIs represent a highly established standard in software and app development. API3 provides a way for the world’s data to be fed into blockchain applications with the ease and standardization provided by API connectivity. 

When building programs or applications, developers often rely on existing APIs to port particular datasets or services into a new project without having to reinvent the wheel and code everything from scratch. For example, a weather app on your phone might gather recent data about real-time weather conditions via an API. APIs are the building blocks of many modern applications and software that we use everyday.

A problem that has arisen — one that API3 seeks to solve —  is that most APIs are built for the legacy ecosystem of centralized applications, data, and financial services, and are not natively compatible with the world of blockchain and dApps. API3’s mission is to make existing APIs compatible with the decentralization standards of Web 3.0 — and to do so without overly burdening API providers or dApp developers. 

What is an API?

To properly understand API3’s value proposal, one first needs to understand what APIs are, and how these standardized data and service interfaces have transformed the way applications are built today.

An Application Programming Interface, or an API for short, is a thoroughly defined and documented protocol used by Web and mobile applications alike, that enables them to interact with one-another by way of exchanging information and services. Using an API as the channel, online businesses today are able to offer their data and services as monetizable service modules, which developers can then integrate into their applications. This, in turn, substantially improves the efficiency of building software both in terms of cost and build-time. When contrasted with a past where developers would have to build every function of their application from start to finish, it is clear why the massive increase in efficiency enabled by APIs has made them the foremost building blocks of the digital world.

Why are APIs relevant to smart contracts?

As the use-cases for blockchain technology have evolved throughout the past decade from cryptocurrencies like Bitcoin, to smart contract platforms like Ethereum, to the recent boom in DeFi (Decentralized Finance), the evolutionary line plotted through these developments has provided a relatively clear path for the future use-cases of decentralized technologies. What this path has shown is not only a broadened capacity for blockchain-based applications to execute increasingly complicated tasks in a trust-minimized manner, but also a deepened connection between decentralized applications and the real world. This has occurred through an expansion of smart contracts into services that extend beyond simple ledgers for transferring value from one account to another, and more resemble democratized services and financial products that not long ago used to only be provided by multinational corporations and large financial houses.

Today we have arrived at a reality where smart contracts and decentralized applications can be used to increase efficiency, reduce middlemen and costs, and provide increased transparency in hundreds of real-world applications through dozens of legacy industries. What’s more, while the first step of this evolution towards real-world-connected decentralized applications has been in the realm of finance, we have only just gotten started. Moving beyond DeFi, smart contracts are poised to transform entire industries from insurance to supply chain management to gambling. What all of these industries have in common, besides their hospitality to blockchain-derived disruption, is their reliance on timely, reliable real-world data provided by APIs.

The API Connectivity Problem

The inability of smart contracts to access data not presently found in the blockchain is commonly known as The Oracle Problem. In practical terms, what this means is that due to the unique consensus-based security guarantees derived from using a decentralized network of nodes as the application platform, the smart contracts powering these applications cannot directly call APIs from the blockchain that the contract resides in. What is needed, then, is a solution that provides smart contracts with the ability to access API data in a way that maximally upholds the security guarantees of the underlying system, without introducing new attack surfaces to it. As this is ultimately at the core of the oracle problem as it has been defined today, we feel that it is useful to rename the problem as the API Connectivity Problem, as this demystified approach through a strategic reduction of scope significantly improves our ability to solve it in the most efficient and secure way. As a solution to the API connectivity problem, API3 proposes a new oracle paradigm, called a decentralized API.

How do dAPIs solve the API Connectivity Problem?

Decentralized APIs (dAPIs for short) are blockchain-native, fully decentralized API services composed of multiple data provider-operated nodes. The way in which dAPIs differ from existing decentralized oracle solutions, is that contrary to the current solutions, dAPIs include the APIs underlying the data feed in the scope of the solution. This enables them to provide superior data transparency all the way to the factual data source level, compared to existing decentralized oracles, which do not consider the data source API to be within the scope of their solution. In the context of dAPIs, this transparency is derived from having the API providers themselves run the middleware necessary to connect their API to the smart contract platform where its data and services are needed. We call this middleware the Airnode due to its light but robust serverless build, which can be deployed in minutes, does not require the API provider to manage and attend to the middleware on a day-to-day basis, and can have APIs integrated to it without the provider having to write any code.

In addition to the added level of transparency provided by the use of first-party oracles, this approach also significantly reduces the transactional costs of delivering API data onto the blockchain, as it gets rid of middlemen node operators who in alternative schemes are needed to run the middleware as a compensated service to both the source data provider and the end user smart contract. As the over-redundant layer of middleman node operators is removed, transaction fees in the form of gas get lowered, and the node-specific fees flow to the factual source provider of the data.

Furthermore, to improve upon the current standards of decentralization and trust-minimization employed in the governance of existing oracle solutions, dAPIs composed by API3 will be fully and transparently governed by a Decentralized Autonomous Organization (DAO) of dAPI consumers, service providers, industry experts and partners. We believe that this new level of transparency, cost efficiency, decentralization and alignment of data provider incentives with those of the solutions they will serve, will lead to a proliferation of new data feeds available to the growing community of smart contract developers the world over.

What is the API3 token?

The API3 token is used as a governance token, payment token, and fee-earning token. Its primary function is to align incentives between various stakeholders in the API3 protocol and facilitate smooth operations.

The API3 protocol is governed by a DAO that is responsible for setting the main parameters of the protocol as well as handing out grants to sub-DAO teams running the day-to-day operations of the protocol.

API3 is also a work token, which is required by dapp platforms to pay for the consumption of data feeds. Last but not least, API3 tokens can be staked in an insurance module by tokenholders to receive a pro-rata share of the protocol staking rewards in exchange for taking on the risk of API malfunctions. 

API3 development updates in 2023

API3 has experienced substantial developments in 2023, enhancing its technological infrastructure and network capabilities. Here’s a summary of the most significant updates:

• Decentralized API Integration and Airnode Expansion: API3 has made significant strides in decentralizing API integration. The platform’s use of first-party API providers eliminates the need for middlemen, thus fostering greater decentralization. This year, API3 expanded the implementation of Airnodes, allowing API providers to directly run oracle nodes. This development not only reduces the involvement of third parties in node operations but also lowers transaction costs and mitigates threats like Sybil attacks.

• Enhanced Data Reliability and Transparency: API3 continues to focus on providing reliable real-world data for smart contracts. In 2023, efforts were made to ensure that the data is not only fresh and dependable but also available in real-time. Additionally, API3 has improved transparency in data sourcing by offering economic incentives to API providers, encouraging them to disclose their data sources.

• Security Measures in API3: The platform has bolstered its security measures, particularly for decentralized APIs (dAPIs). By removing the dependency on third-party oracles and introducing liability coverage, API3 has enhanced investor confidence and overall security of the network.

• Ecosystem Developments and DAO Governance: API3’s ecosystem has seen notable growth, with the decentralized autonomous organization (DAO) playing a pivotal role in managing dAPIs and providing decentralized governance. This has led to more transparent operations of dAPIs with fewer points of failure.

• Tokenomics and API3 Token Role: The API3 token, native to the platform, continues to serve multiple roles including staking, collateral for the platform’s insurance services, and governance through DAO participation. As of 2023, the token’s price and market capitalization reflect its growing importance in the API3 ecosystem.

• Community Engagement and Platform Adoption: In terms of community engagement, API3 has seen a consistent increase in Discord membership and active discussions across various platforms like Twitter and Reddit. Despite some fluctuations in engagement metrics, the platform maintains a solid community presence.

• Future Prospects and Roadmap Achievements: API3’s roadmap in 2023 included the successful launch of managed dAPIs. By streamlining the process for data providers to run their nodes and reducing middlemen’s roles, API3 is positioned to potentially increase its value and adoption in the decentralized sector.

These developments not only strengthen its position as an oracle solution provider in the blockchain space but also showcase its commitment to decentralization, security, and community engagement​​​​.

Official website: https://api3.org/

Best cryptocurrency wallet for API3 (API3)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for API3 (API3)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).