apidays LIVE Singapore 2022: Digitising at scale with APIs April 20 & 21, 2022 From DAOs to Ecosystems - The next big trend in Web3.0 Giovanni Lesna, Head of Enterprise & Partnerships at API3 ------------ Check out our conferences at https://www.apidays.global/ Do you want to sponsor or talk at one of our conferences? https://apidays.typeform.com/to/ILJeAaV8 Learn more on APIscene, the global media made by the community for the community: https://www.apiscene.io Explore the API ecosystem with the API Landscape: https://apilandscape.apiscene.io/ Deep dive into the API industry with our reports: https://www.apidays.global/industry-reports/ Subscribe to our global newsletter: https://apidays.typeform.com/to/i1MPEW

1. From DAOs to Ecosystems –
The next big trend in Web3.0
APIdays Singapore
21st April 2022
api3.org

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3. api3.org
Presenter
Giovanni Lesna
Enterprise Lead &
Partnerships
gio@api3.org
CMC
MBA Digital Business (UB)
Masters in Blockchain (UB) ; BCom Hons (UNISA)
LinkedIn: Giovanni Lesna
Partners

4. 1.The Governance evolution
2.Birth of the DAO
3.API3 as a DAO
4.Growth enabled by APIs
5.Aerial view of blockchain ecosystems
api3.org
Agenda

5. Aragon (2022), explains:
Exponential growth catalyzed by new governance
mechanisms, such as:
api3.org
▪ In the times of Clan/Tribe, Kinship-based governance(extended family)
▪ Hierarchical governance:
Roman soldiers subordinated under centurions (army, church)
Henry II delegated judicial decisions to local juries
Flat tax rates replaced audits of individual wealth
▪ Competitive market: The rise of the corporation governance (trading companies)
▪ 1937, 'The Nature of the Firm', Ronald Coase hypothesized company structure
emerged as a coordination mechanism to internalize productive relationships,
eliminating the costs of managing independent contractors.
▪ Coase Theroem, won Noble prize in Economics 1991

6. Governance Visualized
api3.org

7. Overtime…
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▪ mapping between principals and agents improved many-to-one
relationship (with almost no agency) under a monarchy
▪ into a productive many-to-few relationship
▪ modulated by purchasing power and elections in a free-market
democracy.
States.
Organizations.
Businesses.

8. Evolved…
api3.org
• into a 'choice architecture’
• abstracting millions of decisions away from the
majority to the minority (politicians, founders etc)
• such a hierarchy allowed human
interactions to accelerate, due to
organization.

9. Fast forward to yesterday
api3.org
• Multi-org network (advocacy groups)
• + blockchain technology
• + smart contract functionality
• + wisdom of the crowd
• - architect away the kernels of organizations
• = trivial to spin up borderless companies, charities and
investment groups
• with secure treasuries, inclusive voting, fully transparent audit trails and
no intermediaries.
• Thus, a DAO is born!
The future, today.

10. In other words
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“building communities of meaning around
economic collaboration is the primary form
of strategic advantage firms have”
i.e. the API Economy?

11. Web3 is the next phase of
governance.
DAO Stats:
$11.3bn Total Treasury
4832 DAOs
1.7m governance token holders
54.7k decisions
Stats by Deep DAO
Excellent read: Gnosis Guild
api3.org

12. For the bold:
▵ What’s a DAO?
▵ How DAOs work
▵ 4832 DAOs out there
▵ Aragon – DAO platform
▵ Evolution of Organizations
▵ Demise of the Firm
▵ Further reading and materials
DAO context

13. a DAO visualized
api3.org

14. API3 DAO = Trustless Governance
api3.org | 13
>

15. api3.org | 14
Airnode codebase is fully open source, audited, and actively developed by the API3 Foundation and its partners.
API3 Partners
What is ?
▵ API3 is a DAO : Decentralized Autonomous Organization
▵ Since 2018, API3 predecessor worked on connecting
APIs to Web 3.0. Limitations drove us to innovate.
▵ Holistic view closing supply and demand gaps
acknowledging the chicken-and-egg problem
experienced in growing ecosystems.
▵ Integrations to multiple EVM compatible blockchains, inc.
Ethereum, Polygon, Fantom, Harmony, Plasm,
TomoChain, Conflux + blockchain agnosticism.
▵ Cloud agnosticism: AWS, Google etc for seamless plug-
and-play.
▵ Investors inc. Digital Currency Group, Placeholder,
Pantera, CoinFund, Accomplice, Hashed.

16. What problem is API3 solving?
api3.org

17. ▵ Web 3.0 applications cannot call APIs directly, due to the
way blockchains achieve consensus
▵ Current API connectivity solutions work through
middlemen, with third-party operators bridging blockchain
applications to APIs
▵ Third-party solutions are:
– Unsecure, exposing data to man-in-the-middle
attacks
– Difficult to operate, requiring expert management
– Expensive, as middlemen take a cut of each
transaction
The Web 3.0 API
Connectivity Problem
api3.org | 16

18. Airnode — A Gateway to
Blockchain Applications
api3.org | 17
▵ Airnode is a simple to use, open source API gateway
that allows APIs to directly connect to Web 3.0,
without active management or the use of third parties.
▵ Quick set up (minutes)
▵ Set-and-forget (maintenance free)
▵ Free for API providers to deploy
▵ Airnode allows the API provider to retain full control of
their data, allowing them to be fully GDPR compliant
when transacting in Web 3.0 environments
▵ First-party solution
The Airnode codebase is fully open source, audited, and actively developed by the API3 Foundation and its partners.

19. Airnode: Enterprise-Ready and
GDPR compliant
api3.org | 18
▵ Airnode is the only on-chain blockchain API gateway
project that is fully GDPR compliant.
▵ The transparent nature of the Airnode allows enterprise
clients to extend their own GDPR compliance envelope
and environment out to the edge of the blockchain
through the Airnode itself.
▵ Airnode’s GDPR compliance and transparency-by-design
also allows enterprise clients to control ‘what’ is published
on-chain and ensure full compliance for client and
personal data.
Airnode codebase is fully open source, audited, and actively developed by the API3 Foundation and its partners.

20. api3.org | 19
Quick to set up
Can be deployed in minutes, as
part of existing API
infrastructure
Maintenance-free
Requires no operator
management due to fully
managed serverless
technology
Stateless
Extremely resilient against
any problems requiring
operator intervention
Free to deploy
Built on pay-as-you-go
services
Cryptocurrency-free
Requesters cover all
transaction costs
Ways to receive fiat directly
Set-and-Forget
Requires no specific know-
how to deploy and operate
Airnode Solves the Web 3.0 API & Smart Contract Connectivity
Problem

21. How does an oracle work?
api3.org

22. For the curious:
▵ What are APIs?
▵ What are data oracles;
▵ First-party vs third party oracles;
▵ Why does this differ from Web2;
▵ What’s a DAO?
▵ Further reading and materials
Data oracle context
Key points:
▵ First-party approach allows for transparency and
greater controlled access opportunities without third-
party involvement.
▵ Enterprises retain control over:
○ What data is made available;
○ To whom;
○ At what price and;
○ When
Learn more about Airnode and
beacons/dAPIs:
▵ What is Airnode?
▵ Airnode: technical docs
▵ What is a beacon?
▵ Beacon: technical docs
▵ What are dAPIs

23. Emphasising this point!
api3.org | 22
>

24. Weather.com
getTemp(“London”)
“10°”
The Web2.0 way of calling data into an application
from source. Direct.
api3.org | 23
But first, how does Web2 work
currently?

25. Weather.com
Web3.0 requires the data to be on-chain.
Therefore, we need an abstraction layer or API
Gateway to bring the data from the off-chain source
to the on-chain environment.
Airnode.
api3.org | 24
dApp

26. Weather.com
getTemp(“London”)
“10°”
Write answer on-chain
Request Response Protocol
Instruction submitted, response provided.
e.g. What is the temp in London?
api3.org | 25
dApp

27. Market data
provider
(at source)
Beacon/dAPI
Gold Price
Write answer on-chain
Consume data
$2,000
Check on-chain
(previous) price
Compare response
0.5% deviation?
Check API price
On-chain
update
Also known as a data feed.
Continuous flow of data;
From a single reputable source;
Feed updated at desired % deviation
threshold or x-minutes.
1 beacon = 1 ticker set i.e. GOLD/USD
api3.org | 26
AirKeeper
dApp Smart
Contracts
A risk protection or “covered” service

28. Connecting Web3 and DAOs
APIs, the glue of the internet
api3.org

29. Real world data to DAO (Web2)
Cross-chain connectivity
DAO to DAO communication (Web3)
dApp to DAO (Web3)
api3.org
API’s - glue for the ecosystem

30. api3.org
Web3 Ecosystem -DeFi

31. api3.org
DAO Ecosystem

32. api3.org
Real world use-cases

33. Get started
Btw, We work with Fortune 2000
Enterprises & provide:
api3.org | 32
Use Case Workshop
$0 cost PoC /Pilot
2 hour online workshop (free of
charge) with API3 solution
architect(s) to explore which smart
contract use cases and applications
benefit most from directly
connecting to existing API
infrastructure.
Feasibility / Technical Design
Alignment on wireframes and flow
diagrams mapping architecture
design, data models, user stories,
backlog fit to current legacy
set-up etc.
Implementation partner network for
dApp and smart contract
development.
Proof of Concept Integration
Sprints
API3 team:
▵ 1 Project Manager
▵ 1 Developer / Solution Architect
Enterprise team:
▵ 1 Business / Product Owner

34. api3.org | 33
Navigate Web3 with
API3
Giovanni Lesna
gio@api3.org
P A R T N E R S

35. gio@api3.org
api3.org