API3 (API3) is a blockchain-based project designed to solve one of the most persistent challenges in decentralized application development: reliable, trustless access to real-world data. As smart contracts power everything from DeFi protocols to supply chain tracking, the need for accurate, timely off-chain information has never been greater. API3 addresses this by enabling API providers to directly serve data to blockchain applications — without relying on third-party intermediaries.
This approach not only improves security and reduces costs but also aligns incentives across the ecosystem. By eliminating middlemen, API3 enhances transparency and decentralization, two core principles of blockchain technology.
What Is API3 (API3)?
Smart contracts often struggle to access reliable external data. While traditional APIs (Application Programming Interfaces) are widely used in centralized systems, they cannot directly connect to blockchains. This limitation has led to the rise of oracles — services that fetch and verify off-chain data before delivering it to smart contracts.
However, existing oracle solutions introduce new issues: increased complexity, higher fees, and potential centralization risks. API3 aims to solve these problems by allowing API providers themselves to operate their own oracle nodes. This model, known as first-party oracles, enables direct data delivery from source to blockchain.
The result? Reduced reliance on intermediaries, improved data accuracy, and stronger trust guarantees. With API3, data providers maintain full control over their infrastructure while monetizing their services through tokenized incentives.
👉 Discover how decentralized data delivery is reshaping Web3 applications.
The Vision Behind API3
Launched in September 2020 with the release of its whitepaper, API3 set out to tackle the growing demand for secure, scalable, and decentralized API connectivity. As blockchain adoption expands beyond finance into areas like logistics, insurance, and IoT, the ability for smart contracts to access real-time, trustworthy data becomes critical.
Traditional oracle networks act as intermediaries between APIs and blockchains. While functional, this adds layers of abstraction that can compromise performance and security. API3 flips this model by empowering API owners — such as weather services, financial data platforms, or logistics trackers — to become their own oracles.
This shift supports true end-to-end decentralization and gives developers confidence in the provenance and integrity of the data they use.
Core Features That Set API3 Apart
First-Party Oracles
Unlike third-party oracle networks, API3 enables first-party oracles, where the original data provider runs the node. This eliminates counterparty risk and ensures data authenticity straight from the source.
Airnode: Serverless Oracle Node
At the heart of API3’s infrastructure is Airnode, a serverless oracle node that allows APIs to seamlessly connect to blockchains. Developers can deploy Airnode without managing backend infrastructure, significantly lowering entry barriers.
dAPIs (Decentralized APIs)
API3 introduces dAPIs — fully decentralized versions of traditional APIs. These are maintained by the original providers and aggregated into a marketplace where users can subscribe based on their needs.
DAO Governance
The API3 project is governed by a Decentralized Autonomous Organization (DAO). Token holders can propose and vote on key decisions, including funding allocations, protocol upgrades, and partnerships.
Who Are the Founders of API3?
The API3 project was co-founded by Burak Benligiray, who serves as CEO, and Can Gencer, the Chief Research Officer. Both bring extensive experience in software engineering, cryptography, and enterprise technology.
Benligiray previously worked in digital transformation and cloud computing, giving him deep insight into how traditional systems interact with emerging technologies. Gencer contributed to early research on consensus mechanisms and decentralized systems.
Together, they assembled a global team focused on bridging the gap between legacy data providers and next-generation blockchain applications.
What Makes API3 Unique?
While many projects aim to improve oracle functionality, API3 stands out due to its source-level integration model. Instead of aggregating data from multiple third parties, it enables direct participation from authoritative sources.
This approach offers several advantages:
- Higher trust: Data comes directly from the provider.
- Lower latency: Fewer hops mean faster updates.
- Better economics: Providers capture more value without sharing revenue with intermediaries.
- Improved scalability: Serverless architecture reduces operational overhead.
Moreover, API3 supports cross-chain interoperability, allowing dAPIs to serve Ethereum, Polygon, BNB Chain, and other EVM-compatible networks.
👉 See how developers are integrating real-time data into smart contracts today.
How Many API3 Tokens Are in Circulation?
The total supply of API3 tokens is capped at 100 million. As of 2025, approximately 78 million tokens are in circulation, with the remainder allocated for ecosystem development, team incentives, and community rewards.
The token distribution was structured to ensure long-term sustainability:
- 40% for the community and ecosystem
- 25% for investors
- 20% for the founding team and advisors
- 15% for strategic partnerships and future initiatives
Tokens are gradually released according to a vesting schedule to prevent market flooding and promote stable growth.
How Is the API3 Network Secured?
Security is central to API3’s design. Since dAPIs deliver critical data used in financial transactions and automated processes, ensuring reliability is paramount.
The network leverages multiple layers of protection:
- On-chain verification: All data points are cryptographically signed and verifiable.
- Decentralized node operation: Multiple first-party nodes can serve the same dAPI to avoid single points of failure.
- SLA enforcement: Service Level Agreements are encoded on-chain, enabling automatic penalties or rewards based on performance.
- DAO oversight: The community governs upgrades and monitors network health.
Additionally, Airnode uses zero-knowledge principles where possible to minimize exposure of sensitive credentials during data transmission.
Where Can You Buy API3 (API3)?
API3 is listed on several major cryptocurrency exchanges, including OKX, Bybit, KuCoin, and Uniswap. It is typically traded against USDT, ETH, and BTC pairs.
To purchase API3:
- Choose a reputable exchange that supports API3 trading.
- Create an account and complete identity verification (KYC), if required.
- Deposit funds via bank transfer, credit card, or crypto transfer.
- Place an order for API3 using your preferred trading pair.
- For long-term holding, consider transferring tokens to a secure wallet like MetaMask or Ledger.
Always conduct due diligence before investing and assess your risk tolerance.
👉 Start exploring API3 trading options with low fees and high liquidity.
Frequently Asked Questions (FAQ)
Q: What problem does API3 solve?
A: API3 solves the challenge of securely connecting smart contracts to real-world data by enabling first-party oracles — allowing data providers to directly serve information without intermediaries.
Q: What is a dAPI?
A: A dAPI (decentralized API) is a blockchain-accessible version of a traditional API operated by the original provider using Airnode technology. It offers trustless, transparent data delivery.
Q: Is API3 compatible with Ethereum?
A: Yes, API3 is fully compatible with Ethereum and other EVM-compatible chains like Polygon, BNB Chain, and Avalanche.
Q: How does Airnode work?
A: Airnode is a serverless oracle node that allows APIs to respond to blockchain requests automatically. It requires no ongoing server management and integrates easily via AWS Lambda or similar cloud functions.
Q: Can anyone create a dAPI?
A: Yes, any API provider can launch a dAPI using Airnode tools. They retain control over pricing, access rules, and node operations.
Q: Is the API3 token used for staking?
A: While not used for traditional proof-of-stake validation, API3 tokens are used for governance within the DAO and can be staked to participate in decision-making and earn rewards.
Final Thoughts
API3 represents a significant step forward in making blockchain applications more robust and trustworthy. By reimagining how off-chain data reaches smart contracts, it removes unnecessary intermediaries and empowers data providers to participate directly in the Web3 economy.
With growing demand for reliable oracles in DeFi, gaming, insurance, and enterprise solutions, API3’s focus on decentralization, usability, and security positions it as a key player in the future of decentralized data infrastructure.
As adoption increases and more dAPIs come online, the ecosystem is poised for meaningful expansion — making it a project worth watching in 2025 and beyond.