Wednesday, April 21, 2021
Home The Capital What’s the Role of APIs in Blockchain?

What’s the Role of APIs in Blockchain?

Let’s take a look at what’s the meaning of blockchain before we dive into the role of API in the blockchain. You can compare blockchain to a spreadsheet or a diary that records all the digital transactions. It consists of multiple nodes, and a transaction is only recorded once a consensus is reached among all the nodes. Each node plays an important role as it stores the record of an event.

The majority of the global population that knows about blockchain usually associate it with cryptocurrencies. It’s kind of true that blockchain technology achieved mainstream attention with the rise of Bitcoin and altcoins. The network of blockchain nodes is playing a very important role in bringing decentralized devices to the forefront. It is because, with the blockchain nodes, the decentralized devices can offer a secured verification to the users. The best thing about this is that the verification happens without depending on a single node.

First Step

Second Step

Third Step

Fourth Step

Fifth Step

Sixth Step — The Final One

Let’s now take a look at the role that APIs play in the blockchain space. We will take a look at its use cases in depth.

If you use blockchain as the basis of establishing communications for APIs then it would be possible to secure transaction histories in a decentralized and authoritative manner. Not only this, but you would also be able to prove that the previous transaction did occur and was legitimate.

Decentralization will prove very important in fields such as the internet of things because many times such data will likely hold legally protected data that it won’t be able to share. With blockchain, it would be possible to maintain a balance between technical usage and compliance.

All data and transactions that pass through the blockchain are secured in a decentralized manner. It means that all the interactions on the blockchain network are encrypted. Thus, the chances of an attack on the network are minimal.

We know that in many discussions the issue about the power of the single node threatening the entire blockchain network is ripe. But the fact of the matter is that due to blockchain consensus, this threat is mitigated.

Let’s say that there’s a situation where a single node is compromised. In this case, other nodes will reject the compromised node, or if the node allows, it will be forced to update. Once the node updates, the record correction process will initiate, and the network will again be resecured.

Moving from centralization to decentralization helps build a platform that is both reliable and authoritative. It is because decentralization increases both of these elements. You also don’t have to worry about the vulnerable security systems anymore after making the move to decentralization.

With APIs by your side, you can leverage this feature quite readily. You can verify the results and build trust throughout the blockchain network by pointing accepted transactions to the API.

You will need to implement many technological solutions when the aim is to secure collaboration. Additionally, you will also have to encrypt everything from start to finish. You will also have to ensure that users are providing their identities correctly. Once you have implemented blockchain technology in your collaboration process, you won’t have to worry about users providing dubious identity. It’s because blockchain will allow you to authenticate and identify the users through distributed computing.

Now comes the part of collaborative data. The most worrying situation in this part can be when something leads to data being maliciously harmed. In this case, blockchain will enable you to track and tag the malicious element. You can also restore the versions of the affected data if you have already backed up the data through blockchain. It is possible because your backed-up data is stored in a variety of distributed resources, and the stored data is in a secured and encrypted form.

The interesting thing about chains of these kinds is that tracking them also improves the chain. You can say that the blockchain and API work as quality control by finding the common faults, inefficient nodes, and other issues in the chains. Thus, the network continually improves itself, and you can track its progress. Isn’t it interesting?

We can gauge the importance of unification from Boeing’s aeronautical platform. It has a combination of both IoT and APIs, and these technologies have enabled Boeing to keep costs low and improve the operational performance. They also saw improvement in reliability, and overall, the platform delivered exceptional value.

Popular Articles