API stands for Application Programming Interface. APIs allow software programs to share data and functionality with each other. Historically, APIs were used mainly by large software companies but their usage is becoming more democratic. There have been several technological eras over the past 250 years that have transformed the global economy through new technologies like steam power, electricity, oil, and information technology. Each era brought major paradigm shifts to business operations through new innovations. The information technology era introduced new computing platforms and infrastructure that enabled digital transformation across industries. APIs play an important role in this era by facilitating connectivity between systems and enabling new business models, distribution channels, partnerships, and crowdsourced product development.