Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
APIs offer a wide range of opportunities for businesses. They help deliver seamless user experiences across devices.
Let's first examine what APIs are and how they have become so popular.
What is An API?
A software-to-software interface is an API short for Application Programming Interface).
APIs are a standard and secure way to allow applications to communicate with one another and provide the requested information without any user interaction. This is great news for users and third-party software developers (but we will get to those in a moment). APIs handle all the work in the background, so digital experiences are virtually seamless.
Real-World API Examples
You want to see the latest blockbuster. You might search for the movie's release date and location on a ticket-buying website like Fandango.
You enter your zip code, select a date and click "Go." Within seconds, the showtimes for nearby cinemas are displayed. This is what the user sees.
While you remain on Fandango, multiple applications are at work to facilitate your search. The site requests access to the theater database when you click "go." It is an API request.
These APIs retrieve information to display the best results on Fandango.
Companies are turning to APIs to provide consumers with a seamless experience. You can save time and money by leveraging APIs to access data, code, software, or services from another company.
It is important to anticipate and meet the needs of the consumer, as well as stay agile in the market.
How do APIs Work?
APIs consist of definitions, protocols, and commands that enable software components to communicate and interact with one another using simple commands.
As messengers, APIs send a request from one application to another in real time and then return the response.
The API returns the requested resource or status code if the server can provide the service the client has asked for.
This is roughly equivalent to the mission completed! The API returns an error message if the server cannot do what the requester asked. For example, the resource requested by the client may not exist, or it does not have the permissions to use. It is important to control access by this method.
An API does not give all the information about a program or its code. Instead, it only gives you data made publicly available.
API Calls
API calls result from an application on a client submitting a query to the API. The API call includes everything after the request has been submitted.
This may include the API retrieving information from the servers and delivering it to the client.
Request Methods
The majority of clients expect the server to perform basic functions. The URLs of these requests can be used to ensure that communication between the client and the server follows the Hypertext Transfer Protocol rules.
Four of the most common request methods are used to reach a server:
- Retrieve a resource
- Create a new resource using the POST command.
- Put: Edit or update a resource already existing.
- DELETE: To delete a resource.
Are you still confused? Try an analogy. APIs are often described as ordering food in a restaurant. You, the customer, would be the API and the server, while the waiter is the API.
The waiter takes your order after you have reviewed the menu and selected the dish that suits your taste. Your order is brought to the Chef by your waiter. Chef executes it. You can enjoy your meal more because you don't have to cook it.
Let's imagine the restaurant is overcrowded and cannot accommodate all its guests. Say this happens as the popularity of the restaurant increases.
Then what? API Keys are the answer.
What is an API Key?
API keys are unique identifiers used for authenticating API calls. It is a series of numbers and letters that identifies the client.
(Remember, this is an application or website making the request.). It can grant or deny the request depending on whether the client has access rights. The key also tracks the usage of the service and the billing.
This method is not as safe as an authentication token. Still, it has advantages compared to basic authentication, which requires only a username and password.
Only those who have keys can use the API. This allows a business to control how many calls are made and to ensure that only trusted clients can gain access to server resources.
Continue our previous example; imagine an API key as a restaurant reservation. You can maintain a capacity in the restaurant by requiring reservations.
This will allow the kitchen to serve all guests efficiently and effectively. By limiting access to your API resources and allowing clients only with an API Key, you can ensure that your software will be used securely and efficiently.
What are APIs Used For?
What are the APIs and for? Do you want to embed Instagram images on your app for e-commerce? You can do that with an API.
You can provide an instant link to thousands of hotel listings on your blog. You can do that with an API. Do you want to add a Yoda Translator to your Star Wars Fan Fiction site? There's an API to do it.
Business applications of APIs are:
- Data Sharing: When a program requires data from another party (e.g., a travel application requesting flight information from an airline or an online store obtaining payment details from a processor), the data can be shared via an API.
- Integration of Apps: An API will be involved when two applications -- Gmail, for instance -- work together.
- Embedded Content: To embed content not owned by the company that hosts the site, such as a YouTube clip or script from a third party like Google Analytics, a request must be made to its owner to retrieve the content.
- Internal Systems: APIs don't just share data with others. In a "microservice" architecture, businesses often divide their software into components that communicate via APIs.
The examples below illustrate some of the reasons why companies use APIs. We will explore more APIs in the following sections.
API Examples
You've likely heard about a few APIs without even searching for an API marketplace or knowing anything at all about them.
We'll examine several examples in more detail so that you understand the information and features available.
Twitter APIs
You can drive engagement for your website by using Twitter APIs if you are part of a company devoted to Twitter.
Twitter offers APIs to search through its massive archives. Twitter APIs can be used to search for old tweets, embed timelines or Tweets into your app or website, create and manage advertising campaigns programmatically, filter and stream real-time Tweets, provide personalized customer service via direct messages, subscribe to the real-time activity of over 15 accounts using webhooks and much more.
You can also find a wide range of tools and resources to harness the potential of this global network of communication.
Instagram APIs
Instagram offers APIs to help you with metrics, analysis, and content creation. You can embed Instagram photos from users in your app.
UGC (user-generated content) is an effective form of social evidence that encourages leads to convert.
This platform allows developers to create apps that are aimed at three different groups. Individuals who want to share content, brands, and advertisers are looking to manage media rights and understand their audiences.
Publishers and broadcasters want to find content or get digital rights for media.
YouTube APIs
YouTube APIs allow you to access YouTube’s vast library of videos and add functionality to your website or application.
Here are just some of the reasons why you may want to utilize one of YouTube's APIs: play videos in your application; let users upload videos, create playlists, search for content; gain insights into your channel and video views; schedule live broadcasts and more. To unlock the full potential of YouTube's API, you will need a key.
Spotify Web APIs
Spotify Web APIs can integrate music players into your application or website if you are in the music business. Spotify APIs give you access to all Spotify Data Catalog information, such as albums, artists, and tracks.
Users must grant your app access to their Spotify account to retrieve data related directly to them, such as personal playlists.
Functionalities on Spotify are almost identical. Your users can access new releases, genres, categories, and playlist recommendations with the Browse API.
Spotify offers APIs for Episodes, Playlists, Library, and Follow. Stuck? Spotify has published an example app list so that you can learn how the APIs are used.
Google Maps APIs
Google Maps is a must-have for any developer building location-based apps. You can include street views in a real-estate app by using the Google Maps SDKs.
Google's platform is a vast library of APIs that can be used in countless ways. You want to let users request directions. What about adding Places to your website?
You can even use an API if you are building a ride-sharing application. Google's APIs are divided by platform and usage (web, iOS, or Android).
Be sure to select the right one for your application. These APIs, like most others listed above, are charged based on usage. They are well worth the cost because of their high functionality.
PayPal APIs
PayPal has a large library of APIs you can integrate into your app or website without the need for users to visit PayPal's website.
You can choose from the Billing Plans API and Catalog Products API. Also, you have the Disputes API and familiar Invoicing Orders and Payments APIs.
PayPal's APIs can help you with every aspect of your website, whether you are building a site for an online store or a website that is a member-based organization.
PayPal offers a robust support system where you can find answers to frequently asked questions or ask for help from other developers who are working on PayPal integration.
APIs are available in a wide variety. There are APIs for websites, operating systems, and for other purposes. To fully understand their digital potential, we should look closely at the classification of APIs based on who and for what purpose they are used.
Read More: Why API Integration Services Are Important
Types of API
The audience for an API can be determined by its scope and intended use. Developers work with four type of API:
- APIs Privates: These are APIs that can only be accessed by the internal staff of a business to increase productivity and transparency. Third-party developers are not allowed to use the APIs.
- API Partner: API partner APIs can be shared with anyone, provided they have a business relationship with that company. Many businesses choose partner APIs to control who has access to their resources and how they are used.
- Public APIs: These APIs are open to external users. Some open APIs can be used for free, while others have a fee. This is usually based on the usage.
- Composites APIs: This API allows you to combine requests or calls to receive a single response from multiple servers. You would use composite APIs if you needed data from multiple applications. You can also use a composite interface instead of five API calls.
See our API guide for a detailed description.
Why Use an API?
You might wonder why a business would pay for resources it can create. Why would a company share its assets with others, especially competitors? Why would a company create an API for its employees only? All good questions.
Let's divide the API benefits into API consumers and API suppliers before we get to the answers.
API Consumers Benefits
It is possible to use APIs to request access to another server or to automate a certain task. API consumers are those who use APIs.
They can use each API type in different ways.
Productivity
Some companies use their APIs. Why? Internal APIs allow employees to improve transparency, enhance collaboration and streamline their operations.
Amazon realized the potential of APIs in 2002 when it sent an email to all teams instructing them to use APIs for communication going forward. They prompted developers to convert their already-developed software into APIs. This created a consistent, well-managed way of sharing data and capabilities throughout the organization.
Customer Satisfaction
The best possible experience is what companies strive to give their customers. A single product can rarely satisfy or anticipate all needs and expectations.
They use APIs to enhance the capabilities of their products. OpenTable, for example, uses Maps JavaScript to embed interactive maps on its website, allowing users to find directions to restaurants near their homes in just a few clicks.
Check out the screenshot below to get an overview of Indiana's steakhouse.
Innovation
APIs allow developers, whether they are third parties or employees of your company, to reuse existing software components.
This allows them to concentrate on creating new solutions instead of repeating work already done. Recall the previous example. OpenTable's developers would need to spend valuable time drawing their maps and gathering real-time data to add this feature to its website without the Google Maps API.
Even worse, they would not be able to create a solution that was as reliable or detailed as Google. Instead of reinventing the wheel, developers can focus on developing new features and tools to add user value.
API Providers can Benefit From Other Several Benefits
After you have been convinced by the advantages of APIs, we will discuss why you would want to develop and share an API with others.
As a result, you can unlock new business opportunities as well as other advantages that go beyond those gained by simply using APIs. We'll look at each of them below.
Earnings
The easy answer is money. Google, Yelp, Facebook, and thousands of other companies make their APIs public and monetize them to become additional lines of revenue.
APIs can be the main source of income for some businesses. A recent report found that 35 percent of technology leaders today generated over a quarter of their organization's revenue directly due to APIs.
Scale
Sharing what you're good at with a wider audience will allow a whole network of people, including third-party consumers and developers, to rely on your APIs for data and functionality.
This will ultimately improve your platform's usage and adoption. APIs are a great way to expand your client base and create new opportunities for the digital economy.
Amazon Web Services is one of the best examples. The platform allows developers and companies to build applications that run on Amazon's infrastructure via APIs.
It is widely used around the globe by many customers.
Even More Innovation
This is what we are going to list again. But with a new twist. We discussed above how API users benefit by using third-party services that enable them to spend their time and energy improving their products rather than reinventing themselves.
Most often, API providers and consumers have a much closer relationship. Initially, Twitter's user interface may have been a bit clunky.
TweetDeck was an independent application that built a new user interface for Twitter using the public API. This allowed all Twitter users to have a more enjoyable experience. This is what we call a win, win, and win situation.
How to use an API?
You're now ready to test APIs. What now? It makes sense to first use other APIs before implementing an API in your business.
We'll walk you through how to use an API.
1. Choose an API
You'll need to start by finding an API you can integrate into your business. If you are interested in a big API like Facebook API, you likely already know what API to look for.
Searching by price is another option. You may start with free APIs before moving on to paid APIs. Get your reading glasses ready. Now it's time for you to read the API documentation.
2. You can Get an API Key
An API key, as mentioned above, is used to verify that you are a legitimate client, grant access and track your API interactions.
Some APIs offer their keys for free, while others require that clients pay a fee. In either case, you will need to register with the service. The service will assign you a unique identification number for all your calls.
Keep your private key as secure as you would keep a password. A bad actor may be able to make API requests in your name if your key is leaked.
If such a breach happens, you may be able to void your key and obtain a new one.
3. The API Documentation is Available on the API Website
API documentation is an instructional manual on how to integrate and use an API. It usually contains examples and tutorials, as well as all of the necessary information to use the API.
Consult the documentation to learn how to obtain your key and make requests. You can also find out what resources you can retrieve from their server. Good API documentation is essential. A company may offer a powerful API, but it won't be very useful if the developers don't know how to utilize it.
4. Send a Request Via an Endpoint
You'll now write your very first request. You can use an HTTP client as the easiest way to structure your request and send it.
Although you'll need to read and understand the API documentation to get information, you'll only need a little coding experience to succeed.
Online tutorials are a great help at this point. This YouTube video, for example, explains how you can use an API to get location data directly from Google Maps.
Then use the coordinates of those maps to search for nearby Instagram photos.
5. Connect your App
You can now sync up your app with your API. This is not something you should be concerned about as a marketer. Developers will use one or several languages, such as Python, JavaScript, NodeJS, PHP, and others.
The API with which you are interacting likely is one of a particular type. This is because it is easier to use. These APIs go by the name REST APIs.
REST APIs
The REST APIs adhere to the restrictions of an architectural style known as "Representational state transfer," which makes the APIs easy to discover and use.
Data and functionality are made available via REST as resources. These URLs represent unique resources. You can request resources via REST APIs, such as the Open Weather Map API. All you need is its URL.
A typical REST-based API will assign a resource two URL patterns: singular and plural. The latter is used to specify the resource in question.
They are sometimes called endpoints. Guess why. They are at the very end of URLs.
The server assigns a set of possible actions to each endpoint. A plural endpoint could be used to list or create resources, and a singular endpoint for retrieving and updating a resource.
To inform the server of the action it should take, the client must include the appropriate HTTP verb in the request (GET, Post, Put, DELETE).
Three data formats can be used by the client and server to exchange this information:
- HTML (Hypertext Markup Language)
- XML (Extensible markup language)
- JSON (JavaScript Object Notation)
Examples of REST API
WordPress offers a REST-based API, which allows developers to remotely create, update, or read WordPress content by sending JSON objects between servers and clients.
By allowing developers the flexibility to structure data in a way that makes it easy to access and exit a server, they can spend more time creating better user experiences.
REST vs SOAP
REST and Simple Object Access Protocol, another method of building applications over HTTP, are often compared. REST can be considered an easier alternative to SOAP, as it is less complicated to use and has a more flexible structure.
One of the reasons people like REST is that it offers a lot of conventions but also leaves most decisions to the API designer.
If you are unsure whether to choose REST or SOAP, here's an easy test: if flexibility is what you seek in your API, then REST will be the better choice.
SOAP is the way to go if you're looking for standardization.
Conclusion
Let's not get too complicated. There are numerous business benefits to both providing and consuming an API. What is the main reason for using an API? Connect your API software application with the rest of the world.
This can help companies, including government agencies and start-ups, create innovative business models in the digital economy. APIs change not only the business model of companies but also their thinking. APIs are changing how companies do business.
