Amberdata Blog

The Advantages of Using a Unified API for Multiple Blockchains

Written by Amberdata | Jul 21, 2023

In this article, we explore the significant benefits of employing a unified blockchain API for diverse digital asset offerings and how Amberdata's cutting-edge platform empowers financial professionals with the data-driven insights they need to thrive in this ever-evolving industry. We'll also showcase Amberdata's thought leadership and commitment to staying ahead of the curve, making us the preferred choice for savvy financial executives seeking a competitive advantage.

As blockchain technology and crypto markets continue to mature and expand, financial executives face increasing challenges in synthesizing data from multiple blockchains and navigating the intricacies of digital asset management. That's where Amberdata's unified API and data services come into play, providing a single integration point that fosters a seamless, integrated experience across multiple blockchains.

Existing Blockchain APIs

For financial institutions venturing into the digital asset realm, creating a comprehensive view of the cryptoeconomy relies on having seamless access to both on-chain and market data.

Modern blockchain APIs aim to offer developers and financial professionals a streamlined approach to accessing critical data and functionality across diverse blockchain networks and crypto markets. These APIs act as a bridge for interacting with blockchain networks, allowing users to obtain crucial information on transactions, balances, and network conditions, while also enabling actions such as executing transactions or managing smart contracts. The primary objective of blockchain APIs is to simplify access and management of complex blockchain data, empowering organizations to unlock the full potential of blockchain technology and digital assets.

Challenges in Traditional Blockchain APIs

Blockchain APIs are tailored to specific blockchain networks or crypto platforms. In other words, and at the highest level, Bitcoin API is not the same as Ethereum API and is not the same as Litecoin API. 

This leads to one thing: fragmentation.

For financial institutions to succeed, they must effectively manage multiple APIs, each with its unique integration mechanics and idiosyncrasies. This fragmentation presents significant administrative and technical hurdles for developers and financial professionals, causing them to invest valuable time and resources into managing disparate data sources and updating their infrastructure to accommodate the latest blockchain networks or crypto platforms.

Inconsistency in API Methods

A significant challenge with traditional blockchain APIs is the inconsistency in API methods across various platforms. Each blockchain API typically features distinct methods, naming conventions, and syntax, complicating the creation of a unified interface for managing multiple blockchain networks. This inconsistency poses obstacles for enterprise organizations seeking essential information and functionalities across diverse blockchains, often resulting in longer development times and increased implementation costs.

Furthermore, these discrepancies in API methods can lead to fragmented and unreliable data retrieval, adding complexity to data analysis. Developers frequently need to craft custom solutions for individual APIs, making it more difficult to consolidate and integrate data from various sources. This issue may hinder an organization's capacity to make informed decisions in the fast-paced crypto market landscape.

Multiple API Calls for Different Blockchains

Another challenge arising from traditional blockchain APIs is the need for multiple API calls to manage different blockchains. Since each blockchain has its unique API, it demands various integrations and requests to handle data and interactions on these networks. This scenario can be unwieldy and time-consuming, causing workflow inefficiencies and a greater chance of errors.

Moreover, juggling multiple API calls for different blockchains could result in performance bottlenecks and delayed data retrieval, which hinders financial institutions aiming to capitalize on real-time information and market trends in the crypto world. Additionally, the added complexity of managing several API calls could demand extra resources and support, putting extra pressure on an organization's technical team and raising operational expenses.

High Learning Curve and Maintenance

Traditional blockchain APIs can present a steep learning curve and significant maintenance obligations for developers and organizations. Because each blockchain API is tailored to a specific network or platform, developers must familiarize themselves with the nuances of each API to ensure effective integration and functionality. This may require extensive research and testing efforts, taxing an organization's technical resources and prolonging product development timelines.

Additionally, as blockchain networks and platforms evolve, APIs are regularly updated to accommodate new features and improvements. Keeping up with these updates and adapting integrations accordingly can be a challenging and resource-intensive task. Amberdata’s been collecting on-chain data from Ethereum’s genesis block, but that’s not something most other platforms can offer. This constant maintenance can divert valuable time and energy away from core business activities and innovation efforts, negatively impacting an organization's ability to remain competitive in a rapidly evolving blockchain and crypto market landscape.

What is a Unified Blockchain API

A unified blockchain API is a single, comprehensive solution designed to provide seamless access to data and functionality across multiple blockchain networks and crypto platforms. Instead of having to interact with multiple APIs, each tailored to a specific blockchain or platform, a unified API consolidates all essential information and functionality under one umbrella. By doing so, it streamlines the data retrieval process, simplifies user interactions, and makes handling disparate blockchain networks more efficient and manageable.

Core features of a unified blockchain API include support for multiple blockchain networks, standardized API methods and data formats, real-time and historical data coverage, and efficient access to a wide range of on-chain and market data. By providing users with an integrated and comprehensive toolset, a unified API enables organizations to effectively navigate the complexities of the blockchain and crypto market landscape, capitalizing on valuable insights and driving better decision-making.

Advantages of Using Unified Blockchain APIs

Leveraging a unified blockchain API, like what Amberdata offers, presents numerous benefits for financial institutions and organizations looking to harness the potential of blockchain technology and the world of digital assets:

  • Streamlined data access - With a unified blockchain API, organizations can eliminate the need for multiple API integrations and access data from various blockchains and platforms through a single entry point. This streamlined approach enables more efficient data retrieval and minimizes potential bottlenecks related to handling multiple API calls.
  • Simplified development - A unified blockchain API mitigates the drawbacks associated with inconsistent API methods and data formats, allowing developers to build powerful applications and features more efficiently. By unifying conventions and methods, a unified blockchain API provides a consistent and simplified data management experience, reducing the learning curve and resources required for integration and maintenance.
  • Comprehensive and granular data - As exemplified by Amberdata's extensive on-chain, real-time, and mempool data offerings, a unified blockchain API ideally ensures access to the most comprehensive and detailed blockchain data available. You don’t miss a beat—from addresses, blocks, transaction hashes, and balances, you gain full visibility into every single meaningful on-chain event. This level of data granularity empowers organizations to perform accurate reporting, maintain regulatory compliance, evaluate counterparty risk, and identify important trends and insights.
  • Competitive edge - By leveraging the unparalleled data coverage and actionable insights provided by a unified API, organizations can enhance their decision-making in the fast-paced digital asset ecosystem. This advantage positions them to capitalize on emerging trends and opportunities, effectively, granting them a competitive edge in the market.

Why Amberdata

Navigating the complexities of blockchain technology and the ever-evolving crypto market has never been more crucial for financial institutions looking to make informed decisions and establish a strong presence in the digital asset world.

Amberdata's unified API and data services offer a powerful alternative to building a massive data infrastructure, providing a single integration point and comprehensive datasets that cover the entire crypto-economy.

By delivering efficient data access, simplified development processes, and unparalleled data granularity, our unified API empowers financial institutions to enter the burgeoning digital asset market with confidence and an unmatched competitive advantage. With a data infrastructure built on a reliable and scalable foundation, organizations can focus on growing their businesses in the dynamic world of digital assets, backed by Amberdata's years of experience and status as a trusted provider for leading financial institutions.

Contact us today and unlock the full potential of blockchain and crypto markets for your organization.

For high-quality, granular data feeds reach out to hello@amberdata.io to inquire about our API solution.