When it comes to the development of blockchain projects such as exchanges, block explorers, airdrop robots, ICO scripts, online stores with cryptocurrency payment options, or cryptocurrency payment processors, there is a need to interact with the blockchain in some way. But which approach is best, blockchain API or blockchain node?
If you are completely unaware of what the blockchain API does, let me give you an example: you log in to your favorite cryptocurrency exchange and decide to deposit 100 Tron to convert it into bitcoin. You might click on a button like "Deposit Trojan (TRX)." Now, you see a Tron address and you can send your 100 Tron to that address. But how will the exchange know when 100 Tron has been received? Exchanges can use the webhook system, which will send this information to the exchange server each time a deposit is received. In this case, the solution that provides the webhook system will be the blockchain API.
Let me give you one more quick and easy example, just in case. Imagine that you want to check the Ethereum balance of one of your cold wallets. You might go to a block browser like Etherscan and type your Ethereum address into the search field. Now, Etherscan will show you a lot of different information about the address, including the current balance in Ethereum. Etherscan has to get all this information from some blockchain API or Node to show it to you.
There are several ways to implement the above use cases:
Blockchain node
Most developers will probably still build their blockchain nodes. We will not delve into how to set up blockchain nodes, as this task can be very difficult depending on the actual blockchain. In addition to the technical steps of setting up blockchain nodes, developers also need to have a good understanding of IT security to properly secure the servers that blockchain nodes run on. There are also high hardware requirements for many blockchains, which can make it difficult to run your blockchain nodes. On the plus side, this is probably the option that has the most control over the developer, without any restrictions. On the development side, you have to learn how to use the node's raw data and decode it correctly. This can be difficult because blockchain development has a very steep learning curve.
advantage
Control your nodes
The option to transact using a wallet
Cannot share with other users
shortcoming
Difficult to implement
duty
Hardware costs are very high
Heavy maintenance
Alert to security risks
Raw data
Little support for technical issues
Webhook features are minimal
No transaction history
Blockchain API
Since apis are used by ordinary developers and applications, they are built to implement them easily. There are also some blockchain nodes running in the background, but these nodes are operated and maintained by the blockchain API itself. In many cases, the data from the node is automatically decoded. Although users share the same node, most blockchain apis have integrated load-balancing capabilities that allow them to handle many requests simultaneously. As with many cloud-based solutions, there may be downtime. But these should usually be the bare minimum. Most importantly but not least, blockchain apis are well supported, and when they profit from the solution, they will be happy to help you with any implementation errors that may exist.
advantage
Easy to implement
Calculable cost
Good support
Automatic data decoding and encoding
Webhooks (if the blockchain API supports them)
Query transaction history (if the blockchain API supports it)
Less responsibility for safety
shortcoming
Less control
Sometimes using a wallet is not an option
Less function
All in all, people who are looking for a simple way to use blockchain should use the blockchain API. This is very cost-effective as it takes less time to maintain and learn blockchain development. They are also very flexible in terms of cost due to the use of cost or fixed monthly plan models. Even large solutions with their blockchain developers may have infrastructure that uses blockchain apis to reduce costs in the long run.
If you're still looking for a good blockchain API, you've come to the right place. Chaingateway.io runs one of the most popular blockchain apis on the web. Operating in Germany, with a focus on safety and innovation, it is highly recommended to give it a try.