How Is The Blockchain Catalyzing A Second-Wave API Economy – Part 2

There is a lot to be understood regarding the API Economies 2.0. We continue the discussion from the earlier post. 

The Continuation Form The Previous Post

Here we discuss the second generation of API economies. It helps you to learn what the most needed technology is showcasing in its current generation. There is quite a high demand for this technology generation as it is the necessity of the day. Here is the following discussion on the topic explaining the blockchain and underlying technology of DLT.

The Blockchain And API Economies 2.0

The fact is that blockchain has been hailed as a revolutionary technology in many industries whereas one of its most valuable functions is as a democratizing tool for development. Therefore the technology removes the idea that data can be controlled by a few central nodes in a network. Thereby it is due to its decentralized and open ledger that every user on the network has access to all data and can use it how they see fit. Thereby closely related to this concept, as also one central to a true API economy is the matter of trust. Hereafter in the current model, APIs collect data about users that it’s owned by the company whose API is being used and the Google Maps is still getting to thereafter keep the information that was collected by other apps which then use their API and has thereby the sole rights to monetize it.

It is, therefore, using blockchain as this would not be possible as all information isn’t stored centrally but rather distributed simultaneously to every node’s ledger creating a fully trust capable network dynamic.

Thereafter blockchain’s built-in trust mechanism and its informational advantages mean that APIs can work optimally and indeed many blockchain projects which are built almost entirely using APIs. It is the Request Network, for instance, which is built using Civic, Aragon, Kyber.Network and similar other tools. Therefore there are innovative solutions permitting companies to freely move information around and retain control of it, instead of leaving it to gatekeepers.

Why, Where And How Of API 2.0

As an example, there is allowing users to connect to major centralized sources such as LinkedIn, Upwork, as well as other similar sites and control the information displayed on them. Thereafter it empowers individuals who then take their information with them and migrate to different platforms if necessary. Hence this ability to move data is vital for the new API economy where informational flows are not restricted or limited by a single entity and as long as users can control their information the company’s tool can be integrated into any platform to create professional knowledge exchange.

It was then similarly that the blockchain startup Wibson enables users to control their information and decide how it should be monetized. Thereby in the current API economy, the control over user data remains firmly in the hands of gatekeepers, while the tools like Wibson lets users sell validated data to media sources without sacrificing their privacy offering a different model for API allowing platforms to collect user data without running into ethical dilemmas about control and infringing on privacy. 

Adding Trust, And Thereby Removing Barriers

By now the API economy is not going anywhere as there is currently over 17,000 APIs that are available for use even though most of them have not integrated blockchain as the market has seen larger players either close their access or use API as a means to expand their data mining and monetization efforts. Therefore despite the model’s popularity through this continued centralization of power and control resting in the hands of a few large corporations means they effectively control innovations.

Moreover, blockchain can help resolve these issues by adding trust, self-control, and the ability to employ a democratic approach towards employing new applications. Hence the more open protocol lets developers taking part in the API economy without having to sacrifice their privacy while retaining the ability to maximize their profits by keeping the data they use and produce.

The Final Words Summing Up The Discussion

It is here that blockchain has successfully evolved into the second generation of the API economy. This is proof of the solid technology underlying it thereby the secure transaction is the reason for its popularity hence we suggest that the more the users are determined to get the rewards of trusting the technology for their new developments. As the blockchain keeps evolving more investors are attracted to the new technology as it has become a daily routine to watch the technology progress. We are sure you have the right idea on API 2.0. 

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