In the emerging world of Web3, data is the most valuable commodity, and Oracle solutions play an important role in ensuring that data is transferred accurately and securely between blockchains and data sources.
One project that takes a different approach to developing oracles is API3 (API3), a project that uses Application Programming Interfaces (APIs) to build custom oracles through the use of decentralized APIs that can communicate directly on the blockchain network.
Data from Cointelegraph Markets Pro and TradingView show that since reaching a low of $ 3.22 on February 3, the price of API3 has risen 72% to reach a daily high of $ 5.55 on February 17 with a broader correction of cryptocurrency after news about an escalating Russian. invasion. . Ukraine made a splash in the news.
API3 / USDT 4-hour chart. Source: Trading View
Three reasons for API3 price flexibility include a partnership with Amberdata to release beacon data feeds, the launch of Airnode on the Avalanche network and a new IPO on Binance.
Amberdata and the launch of beacon data feeds
API3’s recent upward momentum began when the project announced a new partnership with digital data provider Amberdata to release beacon data streams to the crypto community.
According to Amberdata, Mentor Dataflows “creates a transparent, scalable and cost-effective solution for data providers to publish data flows directly online.”
Unlike traditional data channels, which hide the source of the information, API3 first-party signals are used to transmit data directly into the chain, rather than through third-party intermediaries.
Oracle vendors typically handle data transfer in a third-party way, but API3’s approach to using decentralized APIs and registering data on the chain offers an alternative design that draws the attention of blockchain developers and protocols.
Airnode integration and partnership with the API3 Alliance
The other event that made API3 optimistic was the launch of Airnode on the flood network.
Airnode is a Web3 middleware designed to connect any web API directly to blockchain applications to provide access to real data via smart contracts, a process that eliminates intermediaries and helps transform data providers into their own blockchain oracles.
In recent months, more than 150 data providers have joined the API3 alliance to push for a new partnership with the NEAR protocol and Aurora, which will provide access to more than 180 API providers.