API3 Overview

API3 is a blockchain-based project that provides decentralized APIs (dAPIs). It allows smart contracts to access real-world data without relying on centralized oracles like Chainlink. Instead, API providers can run their own first-party oracles, improving transparency and reducing middleman risks.

Key Features of API3:

1. First-Party Oracles – API providers directly serve data to smart contracts instead of third-party intermediaries.

2. Decentralized Governance – Uses the API3 DAO, where token holders can vote on proposals.

3. Airnode Technology – A lightweight middleware that allows API providers to offer on-chain data seamlessly.

4. Security & Transparency – Reduces the need for trust in third-party data providers.

Use Cases:

DeFi (Decentralized Finance) applications

Insurance protocols needing real-world data

Supply chain tracking with verified data sources

Blockchain-based identity verification