Definition ∞ API Driven Integration refers to the connection of distinct software systems using Application Programming Interfaces. These interfaces allow different platforms to exchange data and functionality in a structured, programmatic manner. This approach enables automated data synchronization and process orchestration between various digital services. It facilitates seamless communication between disparate systems, enhancing operational efficiency and data flow.
Context ∞ In the realm of digital assets, API driven integration is crucial for connecting blockchain networks with traditional financial systems and data providers. This capability permits cryptocurrency exchanges to link with banking services, or market data aggregators to access on-chain information. Such connections are vital for accurate reporting on market movements, asset prices, and regulatory compliance within the rapidly developing digital economy.