ITPEC IP October 2023 Question 85
Which of the following is the most appropriate description of the API economy?
Explanation
Linking services from many providers over the Internet to offer services with higher added value — the API economy.
An API (application programming interface) is the published way for one program to use another's functions or data. When companies open their services through APIs, others can combine them: a ride-hailing app uses a map provider's API for routes and a payment provider's API for fares, and a bank's Open API lets fintech firms build services on its accounts. The value created by this linking, and the business built on providing and using APIs, is the API economy.
Answer (a)
Why not others:
- •(b) — a copyright holder releasing source code free over the Internet is open-source software (OSS)
- •(c) — streamlining routine administrative work with a software robot is RPA (robotic process automation)
- •(d) — managing transaction history in a distributed way across many systems is a distributed ledger, the idea behind blockchain
Key rule: The API economy is about combining other companies' services through APIs; OSS shares source code, RPA automates routine work, and blockchain shares a ledger.
Business Industry · AI-written, may contain errors
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