Matt Bishop discusses the development of an extensible hypermedia API for commerce at Elastic Path, focusing on event-driven architecture and the concepts of command-query responsibility segregation (CQRS). He explains how commands produce events that are immutable records of change and introduces the notion of backends for frontends (BFFs) as a solution to API client complexities, specifically referencing Netflix's API challenges and the creation of Falcor for handling shared queries. The talk emphasizes the integration of hypermedia navigation with state handling in API design for improved client experience.