Webhooks are event-based services that allow one application to send real-time data to another when a specific event occurs, enabling applications to provide their services as quickly as possible and keep users satisfied. In contrast, APIs facilitate robust, ongoing communication between applications, with API calls generating a data "conversation" made up of requests and responses between API endpoints. The choice between using webhooks or APIs depends on the frequency of data updates needed, with APIs being optimal for more frequent updates and webhooks suitable for less frequent, specific updates. Both technologies are essential to modern application functionality and share common ground but occupy different spaces in terms of their base functionalities and use cases.