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How to build an open crypto economy right now with API

Yeva Voskanian




July 22, 2022

How to build an open crypto economy right now with API

The fear of acronyms is real. Abbreviations are annoying and confusing sometimes. If you're vaguely familiar with the sphere you’re dealing with, it’s just another bummer to have to Google the meaning.

Is BDSM really business development, sales, and marketing? Does MILF actually stand for make it last forever? We may never know. But, when in Web3 and digital assets, what you do need to know is the meaning of crypto API and its utilization in next-gen FinTech projects.

What is an API?

Let’s get down to basics. API stands for Application Programming Interface, and it's about, well, the interface of an app that you use. And if you’ve never heard of this technology, you definitely encounter most of its capabilities in your daily life.

According to recent data, neither Android nor Apple are specialized in weather-related news, analysis, and forecasts. Still, your smartphone has a built-in application that shares all that data with you. Here's how it works in a nutshell.

Clearly, any application has its own bespoke UI (User Interface). But the moment you enter it, an API call is automatically sent out to the server, aka the supplier of weather data for your app, and in a split second, you learn about the weather in your current location.

In cases like these, APIs deliver the request from the server to your mobile device. While the information you need is displayed in a user-friendly manner, what remains in the shadows is the transmission of all core data to the backend of the app from a 3rd party service.

The exchange rate widget on your phone, the app you use to book tickets for your next vacation, even the log-in via Google account function — all of these work similarly to the weather apps. This allows websites and phone apps to feature the data they don’t necessarily create or own within their independent UI/UX designs.

API in Blockchain

The introduction of blockchain brought the concept of Web3 to life. Not to undermine the contribution provided by 1.0 and 2.0 versions, but ushering in the new era of the world wide web, blockchain places an emphasis on privacy and transparency. This reduces points of touch for all involved parties and leaves only the essentials.

Traditional banking faces the same changes. Despite cryptocurrency being one of the most volatile asset in the whole world — unless there is an asset of some sort beyond our galaxy that we are not aware of — data accessibility and availability are still key factors. They need to be aggregated, categorized, and delivered in the blink of an eye. Preferably in half a blink.

Getting data from point A to point B is, perhaps, the simplest of tasks and just the tip of the iceberg. Crypto exchanges do it all the time with the help of APIs. Whether in blue or orange tones, the interface of a platform you use collects data from exchanges, and that’s how you see the most recent rates for ETH or BTC. Blockchain APIs can also tackle more arduous tasks for you.

What can crypto API integration do for your business?

Let's put doubling or tripling the user base aside for a moment. As we slowly slither into the open crypto economy and explore the possibilities it has to offer, there is a demand for crypto data and clear architectures for them. Here is where blockchain APIs can take the stage and fully shine.

In the FinTech sector, crypto APIs can help projects obtain real-time data from wallets, exchanges, NFTs, and multiple DeFi protocols. This means that instead of hiring a development crew for decoding smart contracts or connecting individual wallets, a single API integration allows businesses to leverage the potential that already exists on the blockchain. There's no need to reinvent the wheel or put in additional coding efforts.

Another challenge is to provide a unified experience. It hasn’t been that long since the crypto market and everything around it became mainstream. Back in the day, it was only a puzzle for financiers and analysts. Today, even 16-year-olds are very knowledgeable about tokens, market fluctuations, NFTs, and so on. At the same time, there is a considerable amount of wallet providers, savings accounts, NFT marketplaces, and much more. And here is when an almost existential question arises: how to choose the right one?

Some feature Ethereum-based assets only, some Bitcoin only. But a thin string of Web3 API integration can save users hours of research and create a one-stop shop FinTech project with a single dashboard for multiple operations. Seeing stats and exchange rates, learning about the most promising NFT launches, executing transactions, and keeping track of bank mortgages and loans — open banking and crypto APIs can deliver not just a wide choice of options but every possible option.

Even though not in a superlative form yet, some DeFi platforms already make the best of API technology. The very popular Coinbase can integrate crypto with existing applications. The most popular blockchains are available through NOWNodes via quality API connections. And Blockmate can connect all your users’ crypto data in one place thanks to a single API integration that covers everything a developer needs to build a modern FinTech app, including AML/CFT regulatory compliance.

What’s in it for users?

In a market saturated with solutions, Web3 platforms need to make clear statements in promoting their projects and attracting customers. Introducing potential users to terminology can earn some bonus points in favor of the project and inspire trust. Just as there is word economy in language, APIs can introduce the idea of product economy. Linked accounts or wallets can be available through one single unified API platform, and that can redefine the whole user experience. So, instead of having separate apps for savings, NFTs, exchanges, and bank accounts, everything can be rolled into a single app delivering a full immersion into crypto and traditional banking. Sooner or later, that will be precisely what the crypto- and FinTech-heads will look for.

Final thoughts

In a world where data is king and time is priceless, the adoption of crypto APIs has already proven to be a great success. Businesses save a lot of effort and time on product development, and users enjoy having the whole experience at hand. With that said, more newcomers to the industry will realize the importance of API partnerships and all the benefits that come with the integration of this technology.