Understanding API Keys: What They Are and How to Use Them Securely | Dex-Trade Academy
1. API vs API Key
2. What Is an API Key?
3. Cryptographic Signatures
4. Are API Keys Secure?
5. Best Practices When Using API Keys
6. Closing thoughts
API vs API Key
APIs are the foundation of modern software development and enable various applications to communicate and share information. An API key is used to authenticate and authorize an application calling the API. It's a unique code used by the API to control and track who is using it and how they are using it.
API keys can take many forms, ranging from a single key to a set of multiple keys. An API key is generated by the API owner and used by an API client to authenticate an application calling the API.
API owners use API keys to monitor API activity, such as the types, traffic, and volume of requests. The API key is used by the API to confirm if the application is authorized to access the requested resource. The API key is crucial for securing API access, and it should only be used by the application it is intended for.
What Is an API Key?
API keys are unique codes used by an API to authenticate and authorize the calling user or application. An API key is generated by the API owner and used by an API client to authenticate an application calling the API. It's used to control and track who is using the API and how they're using it.
API keys come in many different forms, and some systems have multiple codes for a single API key. Authentication codes are referred to collectively as an “API key,” while the codes used for cryptographic signatures go by various names, such as “secret key,” “public key,” or “private key.” Authentication involves identifying the entities involved and confirming they are who they say they are, while authorization specifies the API services to which access is permitted.
API keys are similar to account usernames and passwords and can be connected to other security features to improve overall security. API keys can be generated for a specific entity by the API owner, and each time a call is made to an API endpoint, the relevant key is used. It's important to understand that an API key should only be used between the application it is intended for and the system that generates it.
Cryptographic Signatures
API keys can use cryptographic signatures as an additional layer of verification. When a user wants to send certain data to an API, a digital signature generated by another key can be added to the request. Using cryptography, the API owner can verify that this digital signature matches the data sent.
Data shared through an API can be signed by cryptographic keys, which fall under the following categories: symmetric keys and asymmetric keys. Symmetric keys involve the use of one secret key to perform both the signing of data and the verification of a signature. Asymmetric keys involve the use of two keys: a private key and a public key, which are different but cryptographically linked.
The main advantage of using asymmetric keys is the higher security of separating signature generation and verification keys. This allows external systems to verify signatures without being able to generate signatures. Symmetric keys are usually generated by the API owner, while the private key and public key pair for asymmetric keys are generated by the user.
Are API Keys Secure?
API keys are similar to passwords and need to be treated with the same care. Sharing an API key is similar to sharing a password and should not be done as doing so would put the user’s account at risk. API keys are commonly targeted in cyberattacks because they can be used to perform powerful operations on systems, such as requesting personal information or executing financial transactions.
The consequences of API key theft can be drastic and lead to significant financial loss. Furthermore, as some API keys don’t expire, they can be used indefinitely by attackers once stolen, until the keys themselves are revoked. This is why it's important to take API key security seriously and implement best practices to ensure they are used securely.
There are various best practices to follow when using API keys. Rotating API keys often, using IP whitelisting, using multiple API keys, and storing API keys securely are all important steps to take to protect against cyberattacks.
In addition, not sharing API keys is critical to their security. Sharing an API key gives another party the same authentication and authorization privileges as the original user. If the third party is compromised, the API key can be stolen and used to hack into the original user's account. API keys should only be used between the application it is intended for and the system that generates it.
Best Practices When Using API Keys
Using API keys securely is of paramount importance to ensure sensitive data remains secure. There are several best practices to follow when using API keys, including:
Rotate your API keys often if possible. This means you should delete your current API key and make a new one. With multiple systems, it's easy to generate and delete API keys. Similar to how some systems require you to change your password every 30 to 90 days, you should rotate your API keys with a similar frequency if possible.
Use IP whitelisting: When you create an API key, draw up a list of IPs authorized to use the key (an IP whitelist). You can also specify a list of blocked IPs (an IP blacklist). This way, even if your API key is stolen, it still can't be accessed by an unrecognized IP.
Use multiple API keys: Having multiple keys and splitting responsibilities among them will lower security risk, as your security will not hinge on a single key with extensive permissions. You can also set different IP whitelists for each key, further lowering your security risk.
Store API keys securely: Don't store your keys in public places, on public computers, or in their original plain text format. Instead, store each using encryption or a secret manager for better security, and be careful not to accidentally expose them.
If your API key is compromised, you need to first disable it to prevent further damage. If there is any financial loss, take screenshots of key information related to the incident, contact the related entities, and file a police report.
Closing thoughts
API keys provide core authentication and authorization functions and must be managed and protected carefully. It's important to understand what an API key is and how to use it securely. There are many layers and aspects to ensuring the safe usage of API keys.
Overall, treating an API key like a password to your account is crucial. By following best practices and taking security seriously, you can ensure that your API keys are used securely and prevent unauthorized access to sensitive data. Remember, API keys should only be used between the application it is intended for and the system that generates it.
API keys are an essential part of modern software development, and they play a crucial role in securing API access. By understanding what API keys are and implementing best practices, developers can help ensure the secure usage of APIs and protect against cyberattacks.
In conclusion, API keys are a necessary component of API authentication and authorization, and they must be used securely to ensure the protection of sensitive data. Understanding what an API key is, how it works, and best practices for using it securely is crucial for developers and users alike.
By following the best practices outlined in this article, such as rotating API keys often, using IP whitelisting, using multiple API keys, and storing API keys securely, users can mitigate the risk of API key theft and prevent unauthorized access to sensitive data.
It's essential to remember that API keys should be treated like a password to your account and should only be used between the application it is intended for and the system that generates it. By taking security seriously and implementing best practices, developers and users can ensure that their API keys are used securely and prevent potential cyberattacks.
