What is an API?
An application programming interface (API) is a particular set of rules ('code') and specifications that software programs can follow to communicate with each other. It serves as an interface between different software programs and facilitates their interaction, similar to the way the user interface facilitates interaction between humans and computers.

 How is it used?
An example, You are buying an item in online through your credit card. You will provide credit card details and press continue button. It will tell you whether your information is correct or not. To provide these results, there are lot of things in the background.
The application will send your credit card details to a remote application which will validate your information and send the result back your application. API is used in this scenario.
When and where is it used?
It's used when 2 or more separate systems need to work together to achieve something they can't do alone.

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