API3 builds decentrally governed and quantifiably secure data feeds that power Web 3.0 applications without employing third-party intermediaries. Powered by Airnode-enabled first-party oracles, API3’s APIs are fully decentralized and blockchain-native APIs with quantifiable security.
This is a simple, open source Web 3.0 API gateway that allows an API to connect to blockchains without active management or the use of third parties. API3’s can be deployed without any blockchain-specific knowhow, using the same cloud provider as the rest of the API infrastructure. The API owner remains in full control of their data and no third parties are able to access it without their consent. API3 can be easily deployed in minutes as part of an existing infrastructure and are resilient against operator needed issues.
Airnode is the piece of API3 cloud service infrastructure technology that bridges the Weather Source API to blockchain networks. This enables smart contracts on networks to call our API to request Weather Source data in a first-party manner. API3 Airnodes enable Weather Source to bring our weather and climate data to the blockchain for decentralized applications to utilize, opening up a new wealth of business intelligence opportunities including Parametric Insurance and more.
Parametric Insurance (also called index-based insurance) is a non-traditional insurance product that offers pre-specified payouts based upon a trigger event. Trigger events depend on the nature of the parametric policy and can include environmental triggers such as wind speed and rainfall measurements, business-related triggers such as foot traffic, and more. This is often being used in agriculture, developing countries and is also used in determining flood insurance.
For instance, Parametric Insurance companies can load a smart contract into API3 and then use the Weather Source API to deliver a binary weather trigger to gauge potential payouts or liabilities. By utilizing Weather Source’s weather and climate data via the API3 infrastructure companies are able to better determine their risk and benefit from insured assets.
When including weather-based parameters for Parametric Insurance it involves researching measurements from trusted third-party sources like Weather Source to verify the magnitude and type of weather event. Once the magnitude of the trigger is verified and “proof-of-loss” is obtained, the insurer disseminates the payout specified in the policy for the corresponding trigger event(s) to the insuree. Because it is quick to verify if the trigger event passed the threshold specified in the policy, parametric policies can payout quickly. These quick payouts are especially beneficial for the liquidity to successfully recover after a disaster strikes.
Additionally, Parametric Insurance may reduce transaction costs involved in writing and administering insurance policies because there is less need for actual loss assessment for payment of claims or underwriting rating requirements to determine the premium based on liabilities and extent of risk sharing.
Learn more by visiting API3 today or talk to Weather Source.