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Eventually, I think we will see more and more APIs and more and API-only websites (like http://superfeedr.com) that will become the infrastructure for many many other services.
I believe the service has to demonstrate its user value in the first place to make it worthwhile for both API developers and end-users expanding that user value.
Also, as you do not want to burden the user experience by inferior add-ons the question is on how tightly (if at all) to control the extension of your platform through an open API. You see companies like Twitter providing easy access to their API, whereas companies like eBay review each third party application using its API.
The api a web-hardened cache of products, stores, and what products are in what stores - there are a lot of cool things you can do with that. We even package all the data up in an a series of archives built nightly, so you can just import it and rely on your local database instead of constantly calling out to us over the internet.
-Steve
i think virtual currency is the ultimate API. i also think it sets the stage for a lot of trust issues to be resolved, which i think is at the core of many API concerns -- do i trust the folks at the other end. i think at some point networks will emerge that will agree to share each others APIs and sort of agree to being long-term business partners dependent upon each others APIs. in fact i think part of the future of venture capital could be to help establish those types of trust networks. i imagine you guys are already doing that type of stuff, intentionally or unintentionally, via things like your USV portfolio summit.
right now the entire relationship between platform and app developer on top of platform is very murky, but i think eventually the app developers will basically own the platform, and the platform will be a fund that invests in apps it can integrate.