API3 Coin Complete Guide: Everything You Need to Know About Blockchain Oracles for Beginners
What is API3 Coin?
API3 Coin is an innovative platform that acts as a bridge between the blockchain world and real-world data. Simply put, it is a system that helps smart contracts safely and reliably obtain external real-time information (e.g. stock prices, weather information, exchange rates, etc.).
Unlike existing oracle services, API3 aims to minimize intermediaries and provide more transparent and efficient data delivery. Through this, it aims to simultaneously solve trust and cost issues that may arise during the data provision process.
The interesting history and development of API3
The API3 project was started in the summer of 2020 by veterans in the blockchain industry. At the time, there were various attempts to overcome the limitations of blockchain, called the Oracle Problem, but the API3 team wanted to present a more fundamental solution.
When the API3 token was officially issued in November 2020, it attracted the attention of many investors and developers. In particular, it began to attract attention as an innovative approach that complemented the shortcomings of existing oracle services. Since then, through continuous development and partnership expansion, it is currently playing an important role in the DeFi (decentralized finance) ecosystem.
Starting in 2021, actual services began to utilize API3 with the launch of the mainnet, and in 2022, the ecosystem was expanded by securing compatibility with more blockchain networks.
API3's innovative operating principle
The core of API3 lies in a unique system called 'Airnode'. Unlike existing oracles that transmit data through centralized nodes, API3 allows API providers to directly connect their data to the blockchain.
The most important thing in this process is the reliability and transparency of the data. API3 introduces the concept of a first-party oracle, which minimizes the possibility of manipulation by directly obtaining information from the data source. It is also designed to operate in the form of a DAO (Decentralized Autonomous Organization) so that the community can directly participate in important decisions.
Technically, it has a cross-chain function that supports multiple blockchain networks, so it can be used not only on Ethereum but also on various networks such as Polygon and Avalanche.
Various practical use cases of API3
API3 is being used in a variety of fields. The most representative example is DeFi platforms, which provide real-time price information to enable automated trading or lending services. For example, a system can be created that automatically liquidates when the price of a specific cryptocurrency falls below a certain level.
It is also receiving a lot of attention in the insurance sector. In the case of flight delay or weather-related insurance, you can create a smart contract that automatically pays out insurance money by receiving real-time flight information or weather data through API3. This will enable quick and transparent insurance services without complicated paperwork.
API3 is also being increasingly utilized in the gaming industry. You can link real-time sports game results or stock market data with in-game events to provide a more interesting gaming experience. It is also increasingly being used in enterprise solutions such as supply chain management and healthcare data management.
Major exchanges where API3 is available for trading
If you want to purchase API3 coins, you can trade them on several famous exchanges. International exchanges include Binance, Coinbase, Huobi, and Kraken, and domestic exchanges such as Upbit, Bithumb, and Coinone can also be used for trading.
Since the trading volume and price of API3 may differ slightly from each exchange, we recommend comparing several exchanges. When choosing an exchange, safety is the most important, but also consider hacking history, security systems, and transaction fees.
You can also trade API3 on decentralized exchanges (DEXs), such as Uniswap and SushiSwap. Using a DEX allows you to trade directly without the restrictions of a centralized exchange, but you need to consider gas fees and slippage.
Active API3 Community Activities
API3 boasts a very active community! Developers and users communicate 24 hours a day on the official Discord server, and the Reddit and Telegram channels are also very active. In particular, the Korean community is growing, so you can get a lot of information in Korean.
You have the opportunity to communicate directly with the development team through regular AMA (Ask Me Anything) sessions, and you can also participate in voting on the actual project direction through community governance. Through these activities, you can experience becoming a part of the project beyond simple investment.
There are also frequent hackathons and workshops for developers, so there are many opportunities to actually create projects using API3. If you are interested, be sure to follow the official website or social media!
How to store API3 wallets safely
It is really important to store API3 coins safely. The most popular wallet is MetaMask, which is easy to install and use, so I recommend it to beginners. For mobile, apps like Trust Wallet or imToken are also good options.
If you want higher security, consider a hardware wallet. Using a cold wallet like Ledger Nano or Trezor can greatly reduce the risk of hacking. Hardware wallets are much safer, especially if you plan to hold them for a long time.
When choosing a wallet, always check for security, ease of use, and backup functions. Never store your seed phrase online; it is important to store it in a safe offline location.
Things to know when investing in API3
If you are considering investing in API3, there are a few important things to keep in mind. First, the cryptocurrency market is very volatile, so you should make your investment decisions carefully enough to the point where you can afford to lose a lot of money. Just like the saying, ""don't put all your eggs in one basket,"" diversification is also important.
Second, before investing, thoroughly study API3's technical features, competitors, and market trends. I recommend reading the white paper and checking the roadmap and development progress that are regularly announced. Investing based on information is the first step to successful investing.
Lastly, don't be swayed by short-term price fluctuations, and approach it from a long-term perspective. The oracle problem that API3 is trying to solve is a really important issue in the blockchain ecosystem, so as the technology matures and adoption increases, the value is likely to increase.
This concludes the complete guide to API3 coins. If you have any questions or want to know more, please leave a comment. We wish you successful cryptocurrency investment! 🚀