Alchemy announced last Friday, September 10, through his Twitter account, his new partnership with API3, to enable the API3 economy of Web3
“API3 empowers the world’s leading application programming interface (API) providers to offer their services directly to Web3 applications with the integration of Alchemy’s blockchain development platform and tools”, he said in a published article in his website.
According to the company, the current evolution of the web has led to the burgeoning development of Web3, the next-generation autonomous internet built on blockchain. As more users migrate to Web3, the way the world exchanges value will be revolutionized.
But how will developers respond to this growing demand and create new solutions and services in this trustless and decentralized framework? The company indicated that there is also an “oracle problem”, in which the existing infrastructure is not compatible with these new emerging technologies. Traditional blockchain oracles are a third-party service that provides smart contracts with external or “outside world” information that blockchains and smart contracts cannot otherwise access.
In his view, APIs, which use a well-documented open source protocol that enables the transfer of data and services, help overcome existing barriers and bridge the connection between blockchain and real-world use cases. API3 seamlessly connects trustless applications with web API. An example is the Open Bank Project of API3, which offers API solutions for banks, helping them in the deployment of open banking platforms with data points such as onboarding and Know Your Customer (KYC) checks, accounts, transactions, branches and ATMs.
The company explained that API3’s Airnode, initially developed on the Ethereum network, but independent from the blockchain, is a Web3 solution that connects any web API directly to any blockchain application. Basically, Airnode is an effortless, open-source, proprietary oracle that provides value-added services such as decentralized APIs (dAPI).
In addition, he highlighted that these interoperable dAPIs are proprietary oracle chain compositions operated by API providers that are governed by the recently launched Decentralized Autonomous Organization (DAO) API3. As API3 works to build the Web3 API economy, it strives to incorporate “maximum transparency and minimum trust”.
“Traditional companies that create real-world value provide services through their web APIs. Meaningful smart contract use cases must access these services and receiving this first-party service from Oracle is the most minimized configuration of This creates challenges, however, including the need for non-blockchain companies to provide highly reliable services across a few blockchains. Our serverless Oracle node, Airnode, is designed to use multiple blockchain providers in parallel to maximize the availability of the Oracle service provided. and Alchemy is the first blockchain provider we use at the organizational level”, commented Burak Benliqiray, founder of API3.
Similarly, the company noted that by creating the de facto standard Web3 API market, API3 can address the issue of scaling. This will help API3 grow exponentially. API3 designed Airnode to support multiple blockchain providers simultaneously for optimal availability. To take advantage of this feature, the team is working with Alchemy in a few ways, including the power of the WalletConnect integration into its DAO dashboard. Alchemy also allows blockchain provider redundancy to Airnodes API3 to eliminate a potential central point of failure. If a primary provider is unable to respond, a backup or failover provider can take over.
“Alchemy, as a development platform, excels in supporting the ambitions of teams like API3 while allowing them to deliver more Web3 solutions. The Alchemy team is delighted to announce our partnership with API3 and looks forward to seeing what can be achieved”, said Paul Almasi, co-creator of Alchemy Amplify.