API
What is an API? Application programming interface (API) is a way for software programs owned by different companies to talk to each other.
Example of API. Company B has a software called Bread, and company C has a software called crumbs. In order for bread and crumbs to communicate with each other and exchange some information, company B and Company C need to integrate each other's API.
This way, software Bread and Software Crumbs will be able to talk to each other and form bread-crumbs.
Basically, an API specifies how software components should interact.