What is an API?
An Application Programming Interface (API) acts as an intermediary, allowing two independent software systems to talk to each other. It defines the methods and data formats that applications can use to request and exchange information or services.
APIs in Cryptocurrency
- Exchange APIs: Allow developers and trading bots to access market data (prices, order books), manage orders (place, cancel), and withdraw funds programmatically.
- Blockchain Data APIs: Provide access to information stored on a blockchain, such as transaction history, block details, and wallet balances, without needing to run a full node.
- Wallet APIs: Enable applications to interact with user wallets for actions like initiating transactions or checking balances (with user permission).
- dApp Integration: APIs allow decentralized applications (dApps) to interact with external data sources (oracles) or other services.
Importance
APIs are crucial for building the cryptocurrency ecosystem. They enable the development of third-party applications, trading tools, analytics platforms, and integrations that enhance the functionality and accessibility of crypto services.
Related Terms
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