Blockchain Balance and Control of API Transactions

Quiz

Describe the functionality of an API transaction balance and control system. An API transaction balance and control system ensures accurate, complete, and timely data transfer between two systems. It involves a sending system, a receiving system, and a third-party intermediary to verify data transfer.

What are the limitations of traditional B&C systems using third-party intermediaries? Traditional systems rely on proprietary systems, which increases development time and cost. They also introduce additional points of failure and can be vulnerable to data tampering.

How does blockchain improve B&C of API transactions? Blockchain provides a decentralized and tamper-proof ledger for recording and verifying API transactions. This eliminates the need for third-party intermediaries and enhances transparency and security.

What is an API request confirmation? What data does it typically contain? An API request confirmation is a record sent to the blockchain by a consumer system to confirm that an API request was sent. It typically includes a transaction ID, transaction hash, source address, destination address, and a timestamp.

How does an API response confirmation differ from an API request confirmation? An API response confirmation is a record sent to the blockchain by a provider system confirming that an API response was sent. It contains data similar to a request confirmation, but refers to a response instead of a request.

What is a "transaction hash" in blockchain? How is it used for B&C? A transaction hash is a unique fingerprint of an API request or response generated using a cryptographic hash function. By comparing the hash values generated by the sender and receiver, the B&C system can verify the integrity of the data transferred.

Explain how a B&C system can use smart contracts for automation. Smart contracts are self-executing contracts stored on the blockchain that define the rules and logic of API transactions. They automatically perform tasks such as validation, error handling, and alert generation.

How does a B&C system identify "out-of-balance" API transactions? A B&C system identifies an out-of-balance transaction when the request or response hash values do not match or when a request confirmation does not receive a response confirmation within a predefined time frame.

What is the purpose of an "out-of-balance alert"? An out-of-balance alert notifies system administrators or interested parties of potential data transfer issues, allowing them to investigate and resolve the issue.

Provide a real-world use case for a B&C system using blockchain. A blockchain B&C system can be used in an e-commerce platform to ensure an accurate and tamper-proof record of credit card applications or similar sensitive data communications.

Short Answer Questions

Glossary

Application Programming Interface (API): A set of rules and specifications that define how software systems interact.

Blockchain: A decentralized and tamper-proof ledger that records transactions in chronological order.

Smart Contract: A self-executing contract stored on a blockchain that automatically executes the terms of a transaction.

API Request: A request by one system to another for data or services.

API Response: A response to an API request that provides the requested data or service.

Transaction ID: A unique identifier that identifies an API transaction.

Transaction Hash: A unique fingerprint of an API request or response generated using a cryptographic hash function.

Imbalance Event: When an inconsistency or error is detected in an API transaction (e.g., a hash mismatch or timeout).

Imbalance Alert: A notification generated when an imbalance event occurs to alert interested parties.

Decentralized Autonomous Organization (DAO): A decentralized organization that runs on a blockchain and is not controlled by any central authority.