Data is the most valuable commodity in the coming Web3 environment, and Oracle solutions play an important role in allowing the correct and secure transmission of data between blockchains and data sources.
API3 (API3), a project that harnesses application programming interfaces (APIs) to generate first-party oracles through the use of decentralized APIs capable of broadcasting data directly to blockchain networks, is one project that takes a novel approach to produce oracles.
According to data from Cointelegraph Markets Pro and TradingView, the price of API3 has risen 72 percent since hitting a low of $3.22 on Feb. 3 to reach a daily high of $5.55 on Feb. 17 as the wider cryptocurrency corrected on reports of Russia expanding its foray into Ukraine.
Cooperation with Amberdata to disseminate beacon data feeds, the debut of Airnode on the Avalanche network, and a new exchange listing at Binance are three reasons for the price resilience of API3.
API3 Partnership with Amberdata
API3’s latest positive momentum began when the project announced a new relationship with digital data asset supplier Amberdata to distribute beacon data feeds for the cryptocurrency community.
Beacon data feeds, according to Amberdata, “provide a transparent, scalable, and cost-effective method for data providers to immediately publish data feeds on-chain.”
Unlike typical data feeds, which mask the source of information, beacons use API3’s first-party oracles to feed data directly on-chain rather than first going via third-party intermediates.
Oracle providers have traditionally managed data transfers through third parties, but API3’s strategy of employing decentralized APIs and on-chain data recording provides an alternative architecture that is catching the attention of developers and blockchain protocols.
Airnode Launch on Avalanche
The debut of Airnode on the Avalanche network is a second event that adds to the optimistic case for API3.
Airnode is Web3 middleware designed to integrate any web API directly with blockchain applications to make real-world data available via smart contracts, a method that eliminates middleman service providers and assists data providers in transforming themselves into their own blockchain oracles.
More than 150 data providers have joined the API3 Alliance in recent months, in addition to a new agreement with the NEAR protocol and Aurora that will enable access to more than 180 API providers.
Listing On Binance
A fresh listing on Binance, the largest cryptocurrency exchange by volume, was a third factor that gave API3 a boost during the past month.
API3 is currently accessible on four of the top six cryptocurrency exchanges in terms of volume: Binance, Coinbase, KuCoin, and Huobi Global.
