API3 is a cryptocurrency project that is focused on providing decentralized and blockchain-native APIs (Application Programming Interfaces) for the development of decentralized applications (dApps).
APIs are essential for enabling communication between different software components, and API3 aims to make these interactions more secure, reliable, and decentralized.
API3 is dedicated to creating decentralized APIs, which are crucial for dApps to interact with external data and services. These APIs are designed to be trustless, meaning they do not rely on a single central authority for data retrieval.
The network relies on “Delegated Data Providers” (DDPs) to provide real-world data to dApps. DDPs are selected through a governance process and are compensated in API3 tokens.
API3 is the native utility token of the API3 ecosystem. API3 token holders can stake their tokens to become part of the network’s “Airnode DAO,” which is responsible for maintaining and securing the decentralized APIs.
API3 tokens can be used by node operators who provide data to the network’s decentralized APIs. Node operators receive rewards for their services.
API3 token holders have governance rights within the API3 ecosystem, allowing them to participate in decision-making processes, such as protocol upgrades and changes.
Disclaimer. This article is for informational purposes only and should not be viewed as an endorsement by CoinIdol. They are not a recommendation to buy or sell cryptocurrency. Readers should do their research before investing in funds.
Source: https://coinidol.com/api3-api3-token/