Webhook vs API explained: when to use each

The distinction between webhooks and APIs often causes confusion, as webhooks utilize APIs but operate on different principles: APIs are pull-based, allowing users to request data on demand, whereas webhooks are push-based, sending data automatically when events occur. APIs are preferable for guaranteed data retrieval or performing actions across systems, while webhooks are ideal for real-time event notifications and triggering workflows from external events. An example of intelligent automation in CodeWords involves a Stripe webhook triggering a series of API calls to gather customer information, process it using AI, and perform actions such as sending emails and notifications. Common mistakes include opting for inefficient polling over webhooks and failing to validate webhook signatures. Transitioning from polling to webhook-based workflows can significantly improve response times if supported by the service.

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