API
- An API is a set of programming instructions and standards for accessing a web-based software application or web tool.
- In other words, an API serves as a communication channel between two software pieces.
Webhook
- A webhook is a user-defined callback over HTTP, usually triggered by an event.
- When that event occurs, the source site makes an HTTP request to the URL configured for the webhook.
- That request typically contains event data, allowing the destination site to take appropriate action.
Differences
- Webhooks are typically used to send real-time data, while APIs retrieve data on demand.
- The key distinction between APIs and Webhooks is that APIs enable two-way communication, while Webhooks allow one-way data sharing triggered by events.
- The backend service (some API) where the request will be processed is necessary to consume the webhook.
- An XML or JSON format is used to send the webhook POST payload.
- Alternatively, it might be delivered as form data, using an encoding like `multipart/form-data`.

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