The financial services industry is constantly evolving, and one of the most significant developments is the integration of blockchain technology. One way to integrate blockchain into financial services is by using APIs and webhooks.
What are webhooks and why is Quant enabling them?
We’re dedicated to making blockchain technology simple, trusted, and future-proof, and this means making our technology accessible, reliable, and adaptable for anyone building on it. To achieve this, we’re introducing new APIs that can enhance automation, provide valuable insights, and increase efficiency for our users and their projects. The first set of Overledger’s V3 APIs is our webhook APIs. Essentially, a webhook is an automatic notification to an application when an interesting event occurs, which is a useful tool for supporting blockchain in financial services.
How does this benefit Overledger users?
Many people see the combination of central bank digital currencies and blockchain technology as the future of the banking system. However, one of the biggest hurdles to widespread adoption is the lack of user-friendly, industry-standard APIs that would allow financial institutions to seamlessly integrate these technologies into their existing systems and applications.
Our new webhook APIs will allow financial service companies to receive notifications automatically each time something significant happens regarding their assets on the blockchain network. For example, a banking application could receive updates each time a CBDC payment is completed to their customer’s accounts and show notifications on their customers’ mobile phones.
Another potential use case for APIs and webhooks in financial services is in wholesale banking. By using an API to connect a wholesale payment system to a blockchain network, financial institutions can facilitate faster and more secure transactions, and also monitor their own blockchain address using our webhook APIs and receive a notification when a wholesale payment has been made to their address. These notifications can then be used to trigger further payments.
The beauty of Overledger webhook REST APIs is that not only do they follow industry best practices (such as RFC7807 for API error responses), but they can also be used to power the automation of business flows alongside blockchain technology.
Overall, the use of APIs and webhooks to support blockchain in financial services has the potential to bring significant benefits which translate into improved operations and better services to their customers.