What is a Blockchain API?
There’s no denying the fact that cryptocurrencies are set to be the future of the global financial industry. Millions of people have started trading with these
There’s no denying the fact that cryptocurrencies are set to be the future of the global financial industry. Millions of people have started trading with these digital assets, especially after the massive boom that they experienced in 2020 and 2021. Many more are looking to join this world and of course, they need to make sure that they are well aware of how blockchain works.
After all, the blockchain is the foundation of the crypto world as this is the public ledger that stores all transactions made with a certain cryptocurrency. It is accompanied by numerous processes and elements, one of which is blockchain API. API is the main process that we are going to discuss in this article. We’ll be taking a look at what is a blockchain API, how does it work, etc. Without any further ado, let’s dive into the details.
Explaining Blockchain API
Let’s start with the basics. An API stands for Application Programming Interface. This is an interface through which two unrelated systems can interact with each other. An API specification indicates the way that the two systems must interact with the API. Some of the processes that are included here are which languages must be used, how fast are the messages sent, etc.
APIs allow developers to save time as they allow them to benefit from the platform’s implementation to do the hard work. In our specific case, that platform is the blockchain. In the world of cryptocurrencies, there are APIs from pretty much everything – market trading, account management, transactions, analytics and most importantly, security.
Some of the most commonly used blockchain APIs include:
Blockchain wallet API
JSON RPC API
Blockchain Data API
Exchange Rates API
Receive Payments API
Why Are They Used?
The most important function of a blockchain API is to ensure the system’s security. Its biggest value is the fact that it can be used as a secure and private online payment method. Not only that, but just as we mentioned earlier, APIs collect a lot of data connected to market trading.
This data is of vital importance to traders as it can make the difference between making a profit and experiencing a loss. Various companies can benefit from APIs as they use them to create a single address for every user and accept payments with cryptocurrencies.
Exchange rates APIs allow traders to get a clear view of the real-time exchange rates of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. That way, they will be able to determine whether it is worth selling their assets or not.
Not only that, but since APIs power a lot of important processes that are parts of a certain blockchain, they can also be applied to control the blockchain itself. Blockchains are collaborative networks and often, APIs are used as a system of ownership and collaboration.
Finding the Best API
Of course, finding the best API depends on your personal preferences such as budget, project scale and technology. However, there are a few crucial things that you should take into consideration when you are on the lookout for a decent blockchain API and we are more than happy to share the details with you.
Number of Coins that You Want to Include
When it comes to making payments with cryptocurrencies, we all know that Bitcoin is by far the most popular digital asset. That is why every API that you will find is likely to support this currency. However, if you wish to deal with more coins and tokens, you need to be aware of the fact that not every API accepts every coin.
So, do your research and find the one that suits your needs the best.
Not every application requires the same performance level. Some can process hundreds of transactions per second and some are able to process just a few. This is where you need to figure out how many transactions are you looking to be processed and how fast and that will determine what type of API you need.
Overview of the Technology
Finally, we have the overall technology of the API which concerns architecture patterns, languages used in the programming and specific libraries. These are all sectors that you should always take into consideration when you are looking for a decent and secure API.
The crypto world has progressed a lot in the past couple of years and there’s no denying the fact that this industry will dominate the world in the near future. People that are looking to get introduced to the blockchain sector need to be aware of all the processes that are included in it.
One of these processes is API and even though this is a behind-the-scenes process, it is of extreme importance. That is why you need to make sure that you find the best API on the market. By taking some of the factors that we mentioned earlier into consideration, a reputable API that can provide you with the best service is Chaingateway.io.
Chaingateway.io can create a bridge between the real world and blockchain and the best part about it is that it is cheap, compatible, and secure. The team always makes sure that the API is updated and if you have any inquiries that you want to be answered, you can always get in touch with the customer support team, which is available via email and Telegram.