API3 Raises $3 Million to Solve the Blockchain API Connectivity Problem
Summary
Until now, ‘Oracles’ solved this issue by acting as a centralized third party, introducing vulnerabilities, costs, ineffective redundancies, and a lack of transparency. Allowing the traditional API provider businesses to become their own oracles with no third-party middlemen means that they will be able to monetize their services cost-efficiently, securely and with control of how their data will be used. “Crypto’s largest oracle system by network value, Chainlink, is composed of data-reselling middlemen, where the source and quality of data are suspect,” said Chris Burniske, Partner with Placeholder. “With its Airnode design, API3 makes it seamless for primary data providers to pipe their information into cyptonetworks with zero blockchain expertise. That means the reputation and quality of existing data providers can carry into cryptoland, simultaneously allowing these entities to turn a profit from crypto participation.