Abstract

With decentralized applications beginning to provide meaningful services in areas such as decentralized finance, there is an increasing need for these appli- cations to receive data or trigger events using traditional Web APIs. However,the generic oracle solutions fail to appropriately address the API connectiv- ity problem due to an over-generalized and misguided approach. To remedy this issue, OracleMesh will drive a collaborative effort to create a new generation of blockchain-native, decentralized APIs, or dAPIs for short. dAPIs are composed of first-party oracles operated by API providers, and thus are more secure and cost-efficient than alternative solutions that employ middlemen. At the core of the governance, security, and value capture mechanics of this initiative will be the OM3 token. Staking the token will grant its holders full governing rights over the OracleMesh DAO along with all the associated rewards. Staked OracleMesh tokens will be used as collateral for the on-chain insurance service that will provide quantifiable and trustless security guarantees to dAPI users. These mechanics will remove the need for a central authority at the ecosystem level. As a result, the OracleMesh Project will allow smart contract platforms to leverage APIs for the building of meaningful applications in a truly decentralized and trust-minimized way.