How Does Webhook Work on Blockchain
Webhooks are automatically configured notifications on various events that instantly transmit the information to third-party sites, applications, online accounts. The HTTP request is formed for the user’s unique URL after initiating the webhook and the event information transmits through the created secure channel. Webhooks can be compared to PUSH notifications that pop-up on your phone from applications, i.e.: you did a credit card payment and the banking app informs you about a transaction with a pop-up within 1–2 seconds.
What Are Webhooks for, How, and Where Are They Used?
Webhooks solve the problem of receiving information in real-time without constant requests for mutable events, as in polling through the API. To configure webhooks, you do not need to develop additional infrastructures. You need a plain HTTP to form a POST request in JSON format.
Webhooks are configured in advance to set the events for a respond:
- creating and changing order statuses;
- changing the goods’ price;
- changing the counterparty’s contact information;
- subscribing/unsubscribing a client;
- posting a comment;
You can use Webhooks in all Internet services where an instant response is important when a certain task appears:
The blockchain works with a large number of transactions, requests for the authenticity of blocks, and other events that occur, for example, confirmed / unconfirmed transactions in a distributed network, price changes in the crypto market, movement of funds in a crypto wallet.
Specialized services help to track all changes in the blockchain network via API.
Various webhook services can be used to track all operational information not to require constant polling of resources in the blockchains. Using webhooks simplifies obtaining information on cryptocurrency price changes as a result of trading on the exchange, confirming transactions, and receiving funds to the balance of a cryptocurrency wallet; user account management. Webhooks are also called Reverse APIs that have information on every event that occurred.
How Does It work?
When choosing the appropriate WebHook service, you configure it to track the transactions you are interested in. Specify the web address to which all information will be sent. Webhooks are activated during the first transaction confirmation on the blockchain network. The HTTPS callback is used to secure the information transfer. The correct URL must be tracked.
In addition to hosting and managing private blockchain networks with a full node, the service allows you to configure webhooks independently: to receive and configure specific requests, to launch or activate webhooks after a specific number of confirmations, and for additional protection against wasteful money spending to get the most out of webhooks.
What Are the Benefits of Using Webhooks?
- 80% cost and time savings;
- All transactions are automatically tracked in the distributed network;
- 24/7 report access even without Internet;
- Management and control via webhooks in real-time;
- Network performance increase.
Originally published at https://getblock.io on October 8, 2020.