Smart contracts are the building blocks of decentralized applications (dApps) on blockchains. However, they are limited in their ability to access information outside the blockchain network. API3 bridges this gap by acting as a secure and reliable oracle network.

Here's a breakdown of API3's core functionalities:

• Decentralized First: API3 operates as a decentralized oracle network, eliminating single points of failure and reducing the risk of manipulation. Data providers and requesters interact directly through the network, fostering transparency and trust.

• dAPI Staking and Insurance: API3 introduces a novel concept of dAPI (decentralized API) staking. Users staking API3 tokens can participate in securing the network and earn rewards. Additionally, the staking pool funds can potentially be used to cover losses incurred by users in case of a dAPI malfunction, adding an extra layer of security.

• Airnode: Powerful Data Request Protocol: API3 utilizes Airnode, a blockchain-based request-response protocol. This protocol allows smart contracts to securely request data from external APIs and receive the information reliably.

• Wide Range of Data Sources: API3 caters to diverse data needs. It facilitates access to various data sources, including financial data, weather information, and random number generation, empowering developers to build feature-rich dApps.

Key Features:

• Secure and Decentralized: Trustless data delivery through a distributed oracle network.

• dAPI Staking & Insurance: Secure the network, earn rewards, and benefit from potential malfunction coverage.

• Airnode Protocol: Streamlined data request and retrieval process for smart contracts.

• Variety of Data Sources: Access real-world data crucial for building robust dApps.