API3, a provider of oracle feeds, has entered a new stage in its ongoing rollout.
API3’s initial phase included a self funded decentralized Application Programming Interface, also known as dAPI. Ugur Mersinlioglu is a Product Owner at API3. He said that this automated oracle was based on a data feed from one source.
In the second phase, managed aggregated feeds will be released. In this new phase, users can select specific specifications such as time and deviation. Wednesday the team responsible for the project released the details of the second stage.
Oracles can be used to move data from off-chain onto the blockchain in Web3 for smart contracts. These are the key components of how decentralized protocols receive information.
Mersinlioglu said that Web3 Oracle providers typically use a decentralized, middle layer in which different data feeds the Oracle price.
Mersinlioglu clarifies that it isn’t guaranteed that each of these data sources will be completely unique.
“You could still have a middle layer of 30 people, but they all use one data source and that is not decentralization,” Mersinlioglu said. “We don’t want ‘some rando in the middle’ running this oracle node. We want to get data directly from the API so we don’t have to trust another layer.”
API3 makes sure that API3 operates all of their Oracle nodes directly.
“These companies, it is their core business model to sell data, and if they put the wrong data onchain with us, it’s visible, their reputation is on the line,” Mersinlioglu remarked.
Four phases for decentralized APIs
Mersinlioglu claims that there are between three and four hundred self-financed APIs currently active.
The infrastructure works like a phone, and is available to anyone who needs price alerts.
Second phase of the project announced today builds upon initial work.
“You basically buy a subscription, where we will cover the gas costs and maintain this together with the API providers of oracle nodes on the respective chain that you want to consume it on,” Mersinlioglu also said.
API3’s third phase will include an auction built upon oracles. Anyone can bid on the chain, get data signed by providers that is tamper proof, and even update prices.
There are instances when values are updated that do not match the managed parameters.
“They don’t need to essentially wait. They can force an update by paying for it,” Mersinlioglu said.
Mersinlioglu said that the final API3 phase would involve creating a Nexus mutual for oracles. This refers to the alternative decentralized platform for insurance.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
