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How to Choose the Best Blockchain API for Your Project

Originally published in the NOWNodes blog.

The entire e-commerce industry is experiencing an unprecedented boom in the use of blockchain technology. It is in line with the worldwide surge in blockchain technology observed over the past decade. The usage volume of blockchain technology was almost zero in early 2012. But the size of the bitcoin blockchain grew exponentially to reach a figure of almost 250,000 megabytes in 2019. That’s a considerable rise.

Regular promising technological innovations and the development of new usability features made blockchain popular today. It went from being a good-to-have technology to something indispensable. Thus, an option to pay in cryptocurrency is essential today and many companies around the world started accepting crypto payments.

Blockchain can be imagined as a ledger that is unique in the way that the information in the ledger is spread between every user. Every bit of information is encrypted. Since the ledger is not maintained or managed by a single entity, like the accountant in a traditional accounting operation, Blockchain is ideally decentralized.

A strict regime of hash encryption increases the level of privacy of an already decentralized system by manifolds. To hack the encrypted system of blockchain, one needs to attain an unimaginable level of computing power. So much so that facilitating cryptocurrency transactions proves profitable than the attempt to hack it. Yes, it is that hard!

Apart from developing cryptocurrencies, this capability proves effective in facilitating smart contracts, banking, or logistical networks, and many more. This technology can also be used efficiently to deal with privacy-sensitive data, especially in the government sector, such as voting records or medical information of individuals.

API is the acronym for an application programming interface. An API for blockchain implies such an interface that interacts with a blockchain node or a client network for the user to gather data from it.

In terms of real-world applications, such blockchain APIs are similar to an app that we use to book tickets, cabs, or a hotel. An API in the world of blockchain can be used to create a communication interface between a cryptocurrency exchange and a user application.

Cryptocurrency APIs serve several purposes such as completing a transaction, trading in the market, managing an account, etc. Over and above, the use of blockchain API also relates to the domains of analytics and security.

APIs also come handy in the domain of crypto trading. Most of the crypto exchanges provide their APIs to gather as much information as possible before trading. These, in turn, ensure the highest probability of making a profit on the trade.

Apart from the traders, there are data aggregation platforms that use these crypto exchange APIs to compile important data and then disseminate it through their APIs. There are other agencies, such as ICOs, and investment and crowdfunding platforms, that provide their APIs.

APIs developed on open-source codes are considered the most secure by the developer community. Any open-source code can eventually be tested by anyone. It makes the code immune to any infiltration. This is a very important feature that you must look for in the API that you are planning to use.

However, there are some limitations to the Ethereum network. It is slow and expensive. It is not advantageous when large volumes of data go through it.

However, when examined from the perspectives of security, protection, and privacy, a blockchain API is any day better from the non-blockchain ones which are otherwise faster and more productive.

If you have any questions about blockchain APIs, then you can surely reach out to us. NOWNodes is a market leader when it comes to blockchain APIs. Are you a startup founder or owner of an established large business? You can leverage our block explorer APIs to make your ideas come to life.

Choose any Nodes or Explorers that meets your needs and suits your goal. Contact us today for a chat or call and we will answer any questions that you may have about our blockchain APIs.

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