APIs for the digital crypto-reality
The term API has been in the developers’ glossary since the 1960s. However, right now it’s gaining an incredible popularity, especially in the field of cryptocurrencies. The question is: why?
A bridge between software systems
Let’s get the basics. API refers to the application programming interface. It is a ready-made code that a developer (and a non-developer as well) can use to simplify the process of creating an app or a piece of software, saving his time and efforts. In fact, an API can be compared to a semi-finished product, but only in the programming.
The API solution has been used for decades and aimed at interconnectivity between software platforms. Unlike a user interface, this concept is a software-to-software interface, thus it enables external programming pieces to get access a certain Web tool. APIs have proved their efficiency and were released by many companies including Microsoft, Amazon, Google, Oracle and etc.
Especially the use of APIs skyrocket when there is the need for interaction between complex software systems.
Litmus paper for ICO investors
In today’s cyber economy with digital devices, a success of each Internet-based company depends on how agile it is and how fast it can adapt to the changing customer needs. API-friendly businesses are much more attractive for community and investors.
In the ICO world, API becomes a sign of openness and endurance of the business concept described in the White Paper. If the company already has or at least develops an API, then it takes the business seriously and is likely to be around for many years. While assessing an ICO project, investors pay much attention to or even focus on the API issue, and prefer API-friendly concepts.
How API concept can be used in the sphere of cryptocurrency and how the crypto world can benefit from it?
Imagine a situation. You trade on the cryptocurrency exchange named X. Since trading on exchanges entails high risks related to thefts of users’ funds, you don’t want to take this risk and look for another solution to continue your activity. Here comes the API. With it you can transfer all information from exchange X and integrate it into your external program: currency rates of digital currencies, data on trade volumes for each pair of currencies, records of your activities, etc. And more importantly, you are able to trade cryptocurrencies via this terminal without direct access to funds.
Moreover, APIs are used by programmers to write trading bots. The bots are beneficial both to a trader and an exchange: the user facilitates his work with automation, while the exchange receives more trading volume due to the accelerated money turnover.
Now let’s look at another case. You manage a blockchain project or an online store and want to integrate a specific crypto wallet in your website or application. For this you can (and actually should) use the exchange API offering the option of cryptocurrency payments.
Putting it simply, the API is a real rescue for traders, digital funds, and projects.