APIs and blockchain: what do these two technologies have in common?
Both connect, and both interact. But are there any other overlaps between the fundamental technologies of APIs and blockchain? Much lies under the surface in terms of what both these technologies are capable of in an enterprise and industrial context, especially since blockchain alone has garnered much popularity after being applied to a few areas outside of cryptocurrencies such as bitcoin.
This article therefore elaborates on some of the key characteristics and qualities of APIs and blockchain. Read on to know more!
Connecting one application with another.
In essence, APIs perform the key function of connecting one application to another, so that data can seamlessly pass through for smooth workflows. Likewise, blockchain technologies can be leveraged with relevant APIs, so every node is aligned and updated.
This is especially useful for IoT and edge computing devices that are seldom connected to a central source of truth, but need to have their data inspected by all the users in the network. Whenever this data is encrypted and sent across, its blocks can be used to update the other chains in the network, thereby keeping the decentralization quotient at its peak.
Establishing security.
The blockchain network is verified through blocks that are updated at every transaction. As a result, the blockchain concept in itself can be repurposed for maintaining the security of your data, as well as establishing strong access controls within your network.
With ready-made APIs already available for services such as transaction processing and identity management, your business can incorporate cybersecurity protocols by ‘baking in’ blockchain technologies within your existing network and security mix.
Creating a decentralized yet authorized environment.
With blockchain being popularized by digital currencies such as bitcoin, it is a technology that can very much be repurposed for a whole host of other applications, be it enterprise or industrial. Thanks to its decentralized characteristics, shifting authority over to all the users of a particular network can foster mutual consent and alignment in terms of what is passed and rejected.
As a result, such a concept can be incorporated within any processes that need prior approval to conduct a task, operation or transaction — but without the overhead of maintaining a central authority and environment.
In a nutshell…
With blockchain gradually garnering interest across the business landscape, leaders are more keen to understand how it works — while also trying to brainstorm how its qualities can be applied to their own business use cases. By offering an environment which encourages decentralization and the mutual approval of all users within any given network, blockchain is a technology that can be incorporated across any business application that requires prior inspection and subsequent approval from relevant entities.
As blockchain makes this possible, it does so without the resources and costs needed to maintain a central source of truth. With relevant APIs that range across various business processes in numerous industries, the scope available through blockchain is practically limitless, as it solely depends on how you adopt it for your own specific business use case.
