Webhooks are automated messages that send real-time data to applications when specific events occur. They act as user-defined HTTP callbacks that allow one system to notify another immediately when something happens, streamlining real-time communication between systems. Webhooks automatically deliver data the moment an event is triggered, reducing server load and eliminating unnecessary API calls. APIs (Application Programming Interfaces) are structured gateways that let applications communicate by sending and receiving data through requests, operating on a pull-based model where the client initiates interactions. Both webhooks and APIs have different approaches to data exchange, with webhooks ideal for event-driven architectures and APIs suitable for systems requiring reliable, on-demand data exchange and multi-step workflows. The choice between webhooks and APIs depends on factors such as responsiveness, resource usage, complexity, and system load. Combining both technologies can create responsive, high-performing systems by leveraging the strengths of each. Understanding the differences between webhooks and APIs is crucial for making informed integration choices that improve system performance and security.