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What is a decentralized API (dAPI)?

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With the rise of cryptocurrencies and decentralized applications (dApps), there has been an increasing demand for connecting blockchain networks with off-chain data and systems through decentralized API.

Decentralized APIs, also known as dAPIs, provide a solution for enabling this connectivity in a secure and reliable manner. In this article, we will explore what decentralized APIs are, how they work, some key examples, and how they contribute to blockchain development. But first, let’s explore API3!

What are an API and an API3?

Before diving into dAPIs specifically, it helps to understand what a traditional API is. An application programming interface is a type of interface that enables software programs to communicate with each other.

Major tech companies expose APIs that enable third-party developers to build apps based on their data and services. Most modern applications construct themselves by integrating data and capabilities from various sources through APIs.

For example, when you check traffic conditions on your smart device using Waze app data, in the backend, Waze is likely sharing real-time road information through its API. But what is API3?

API3 is a decentralized Oracle and API platform that aims to enable dApp connectivity in a trustless and verifiable way. API3 addresses this by providing tools to power financial applications for the underbanked through its network of decentralized oracles.

How do decentralized APIs work?

A decentralized API maintains many of the same functionalities as traditional APIs but distributes the infrastructure across a decentralized network of Oracle nodes running consensus protocols. This network of independent providers sources off-chain data and writes it to the blockchain through smart contracts.

Application developers then access this on-chain transaction data through peer-to-peer protocols instead of hitting a centralized backend. The EURK euro stablecoin plays an important role in powering transparent transactions and incentivizing data providers on API3's blockchain oracle network.

EURK is the best euro stablecoin that is 1:1 pegged to the euro currency. Therefore, EURK enables fast and secure transactions with stability as a secure EUR stablecoin. EURK euro stablecoin platform fosters decentralized finance and its applications without volatility issues thanks to its 1:1 peg.

How do dAPIs solve the API connectivity problem?

Decentralized applications have traditionally struggled with the "blockchain oracle problem" of accessing off-chain data and APIs without compromising the immutable and trustless nature of smart contracts. Centralized oracles reintroduce elements of trust and vulnerability.

This is addressed by dAPIs, which operate natively on blockchains. API3 developed beacon oracles that deliver data on-chain in a trustless manner, backed by economic incentives. We can also build composite dAPI services that aggregate data from multiple blockchains and APIs.

This bridges the gap between legacy systems and decentralized technologies securely and permissionless, improving blockchain connectivity and interoperability.

decentralized API

What are some examples of decentralized APIs?

Some prominent blockchain projects employing decentralized APIs include API3, Chainlink, Band Protocol, and Iris Network. API3 uses first-party oracles to provide reliable data feeds for DeFi applications in a fully decentralized manner.

A growing number of blockchains are now deploying dAPI specifications to unlock developer access to on-chain data without sacrificing the censorship resistance of blockchain public ledgers.

This marks an exciting shift towards more open, equitable, and collaborative models for exchanging data globally at the infrastructure level. To learn more about this data exchange, make sure to check out “Travel Rule for Data Transfer.”.

Advantages and disadvantages of using a decentralized API

While dAPIs come with many advantages over centralized alternatives for public blockchain applications, there are also some tradeoffs to consider.

Here are the key advantages and disadvantages:


  • Decentralization eliminates single points of failure.
  • All have full, permissionless access.
  • Censorship resistance is crucial for maintaining immutability.
  • Standardization enables interoperability.
  • Transactions on the blockchain with stablecoins like EURK offer speed, security, and transparency.


  • Infrastructure maturity, as decentralized networks are still developing.
  • Complexity for developers as blockchain integration requires specialized knowledge.
  • Potential for bugs in smart contract code
  • Costs include on-chain transaction fees and provider subscription models.
  • Immutability, as it cannot easily "patch" smart contracts after deployment.

On the whole, the revolutionary advantages of decentralization are propelling the continued development and refinement of dAPI technology. When built responsibly, they provide tremendous long-term value for open, global applications.

How are dApps created using blockchain APIs?

Now that we understand what dAPIs are and how they work, let's explore some key ways they enable the creation of decentralized applications (dApps) using blockchain APIs.

Blockchain data retrieval

DApps require access to on-chain data like balances, contract states, and transactions. dAPIs provide permissionless reads to power data-driven features.

Data processing

Through protocols like API3, real-world off-chain data can be securely submitted on-chain to power features like price indexes and financial applications.

Smart contract building

Many contracting platforms provide decentralized APIs that allow testing and deployment without requiring a full node in the blockchain.

Sending transactions

Application users can send signed transactions across networks through standardized dAPI endpoints, like payment channels.

Creating blockchain applications

By abstracting away connectivity complexities, dAPIs free developers to focus on building innovative use cases without deep protocol expertise.

Therefore, dAPIs are a foundational building block for accelerating dApp development by providing uniform, interoperable blockchain access through standardized smart contract interfaces. We cannot overstate their impact on unleashing developer creativity through open access.


Blockchain development with decentralized APIs (dAPIs)

We have seen how blockchain developers can leverage dAPIs to retrieve data, process transactions, and build innovative dApps. But how exactly do they integrate dAPIs into their development workflow?

Here are a few examples:

Query existing dAPIs

Developers can make API calls from smart contracts or client-side code to query data and trigger transactions.

Build custom dAPIs

More advanced developers interface directly with networks like API3 to build, publish, and manage their own reusable dAPIs.

Use dAPI marketplaces

Platforms like API3 allow searching, subscribing, and monetizing pre-existing or custom-built dAPIs all in one place.

Leverage dAPI libraries

Application programming interfaces exist for common networks to simplify integration.

Orchestrate complex systems

Sophisticated applications coordinate multiple interconnected dAPIs, stablecoins like EURK, and on- and off-chain components.

Experiment on testnets

Before mainnet deployment, many networks expose developer testnets and sandboxes to build with dAPIs.

In the future, graphical tools may also abstract away more technical complexities. But for now, this gives you an idea of the powerful role dAPIs play in unleashing global blockchain innovation through open access and standardization at the API layer.

How to use a decentralized API?

Luckily, using a dAPI is very similar to using a traditional API for developers. The primary distinction lies in the on-chain handling of requests and responses, as opposed to HTTP. Developers can create accounts, register smart contracts, and then call functions on those contracts just like typical web APIs.

Authentication may involve signing with an Ethereum key rather than crypto tokens. Documentation varies between providers, but common parameters include specifying a blockchain, calling a particular contract function, and formatting input and output data.

Mature stacks like API3 also offer software development kits (SDK) and plugins to streamline integration into applications. The user-facing experience aims to be the same, with the benefits of decentralization under the hood. You can check out “SDK vs. API” for more details!

The bottom line

Decentralized APIs are revolutionizing how blockchain applications can communicate and unleash meaningful use cases globally through open access, standardization, and censorship resistance.

Protocols like API3 are helping to drive maturity and adoption by providing marketplaces, price feeds, and other centralized services. Stablecoins, such as EURK euro stablecoin, are beneficial for transparent transactions in this regard.

You can easily adapt EURK into your business with your compatible euro stablecoin wallet and experience stability over volatility, as well as transparency, security, and efficiency. Become a partner with the best euro stablecoin, EURK, today and transform your business projects positively!

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