With an increase in deployment of blockchain networks for business, there will be a corresponding rise in APIs. Given this scenario, an API development environment can prove extremely useful for organisations.
Blockchain technology, the distributed ledger method underpinning Bitcoin, continues to gain acceptance despite the popular cryptocurrency being banned in several Asian markets. The global blockchain technology market is predicted to touch $7.74 billion by 2024, according to a report by Bitcoinmagazine that cites GrandView Research data.
As per the data published by Statista.com, consumer products and manufacturing, life sciences, technology, media and telecom, and oil and gas are some of the industries looking at employing blockchain technology in production. Industries such as banking and financial institutions (BFSI), automotive, food, healthcare, and public sector are already experimenting with the technology. Mentioning that blockchain was the No. 1 term searched on Gartner.com since January 2017, a July 2018 guidance by Gartner advises CIOs to explore blockchain technology for strategic business initiatives. Considering that APIs are extensively used in blockchains, there will also be a corresponding growth in API development and adoption in the near future.
Scope for APIs
Although in the initial stages of the adoption curve, blockchain technology is on the rise. In a blockchain, APIs are used at various levels. APIs are useful for blockchains due to the manner in which blockchain transactions are conducted, the associated data is secured and saved. Take the example of permissioned blockchains. Permissioned blockchains have been gaining popularity amongst enterprises of late. Several industry consortiums are building permissioned blockchains to share data or to carry out specific transactions. Fifteen life insurance companies in India have built a permissioned blockchain to share the medical records of their term insurance applicants (and customers). A permissioned blockchain introduces an additional layer of access control and security. Generally, a blockchain transaction follows four primary steps as explained below.
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Transaction initiation: Here, only the authorised entities are granted permission to initiate a transaction. For instance, in the insurance consortium example cited above, a request for a particular individual’s medical records—a customer of another insurer—can be made only by an insurer who is a member of the blockchain. This request is examined by the blockchain network and depending on the validity of the request, it is accepted and authorised. As the next step, the information submitted by another blockchain member is validated.
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Codification: The blockchain defines the nature of the transaction and only the pre-authorised type of transactions are validated and approved for codification. The request is then codified with hash codes for further processing at the blockchain level.
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Activity completion: Following the essential checks, the requester is provided with the expected response, thus, completing the transaction. In the above example, the relevant medical records are passed on to the requesting participant(s). In a blockchain, the information is stored and shared in encrypted and anonymised / pseudonymised format to ensure that personally identifiable details of customers are not compromised.
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Block publishing: Lastly, this step involves making the transaction record information (block) available for everyone for integrity check and validation.
APIs are used in this entire process at various levels. They are necessary for all the communication that occurs between users and technologies in the process described above. Considering the crucial role played by APIs, a rise in blockchain adoption will result in exponential increase in API adoption too. Whether enterprises decide to build or buy APIs for blockchains, there will be a pressing need for massive API development and management to ensure smooth and secure functioning of blockchains.
Need for an API development environment
Given this scenario, streamlining the entire API development and management process can immensely benefit from an API development environment. An API development environment helps developers skilfully navigate through a complex web of tasks involved.
An API development environment helps to consolidate all the key activities involved in an API development cycle. Powered by features such as workspaces, built-in tools and executable API descriptions developers can expedite the development stages of API design, testing, mocking and post-production monitoring. A good platform product provides a bird’s eye view on the entire project and the dependencies for every API—internal or external. Another useful feature of a good platform product is the documentation support it comes with.
Going forward, as blockchain adoption becomes pervasive, organisations will feel an expansive need for ready API development environments to ensure their deployments are speedy, glitch-free, and without hassle.
Authored by Abhinav Asthana, CEO & Co-founder, Postman