Decentralized API (dAPI) network joins forces with real-time data network to bring data streams to smart contracts and decentralized applications, via first-party oracles
API3, a decentralized API (dAPI) network that enables data providers to become their own blockchain ‘oracles,’ has joined forces with Streamr to bring data streams to smart contracts and decentralized applications. Streamr will become a founding governance partner of the API3 DAO, a Decentralized Autonomous Organization (DAO) fully and transparently governed by dAPI consumers, service providers, industry experts and partners.
Traditionally, data providers have had to rely on third-party oracle solutions to connect their data to blockchain-based applications. This meant that providers were required to either trust third-party middlemen with control over their data, or operate maintenance-heavy blockchain middleware in place of the third-party operator. API3 solves this issue of API connectivity by enabling data owners to provide their data to decentralized applications via a simple and serverless first-party Web3 API gateway; Airnode. Through Airnode, Streamr Marketplace data can be directly fed into on-chain smart contracts, cutting out any and all third-parties.
By providing a “set-and-forget” style Web3 API gateway for the provider to run, in addition to a significantly lighter yet more trust-minimised operation, the API3 model has concrete financial benefits. This is because the financial compensation for data sellers involves no middlemen, and thus value can flow directly from consumers to providers. Additionally, data providers remain in full control of who gets access to their data, and are not forced to cede this control to operators external to their organisation.
“This is a long-term partnership that we intend to leverage extensively,” Heikki Vänttinen, co-founder of API. “Our goal is to enable data providers to sell their data to Web3 use cases without having to rely on middlemen or operate maintenance-heavy middleware. Streamr will enable us to do this; they already have the right infrastructure in place, as well as a substantial amount of both data providers and consumers onboarded. With Streamr, we have a great partner to get more high-quality data on-chain to be utilised by smart contract developers.”
“The Streamr protocol transports secure, cryptographically signed, verifiable data points,” said Henri Pihkala co-Founder of Streamr. “They would be ideal to fuel data-driven smart contracts, however an oracle is needed in between. By joining the API3 ecosystem we can create the connection and unlock new opportunities for the decentralized data economy. Streamr acts as the scalable, first destination for your raw data flows, while samples or aggregates of the data can then be connected further to smart contracts.”
Streamr and API3 are planning to build a pub/sub Airnode implementation of the Airnode protocol. So far, request/response is the pattern most commonly used for oracles. By providing a pub/sub Airnode solution, the offering gets perfectly integrated into the pub/sub pattern used throughout the Streamr Network.
API3 recently closed $3M in a private fundraising round led by Placeholder and with participation by Pantera, Accomplice, CoinFund, Digital Currency Group, Hashed, and more.
Learn more at www.api3.org