June 24th, 2013

Are APIs the New Toll Booths for the Information Superhighway?

APIs can turn Obama’s Open Data Mandate into city, state, and federal government Revenue.

As the recent Obama Open Data mandate is intended to increase federal government transparency, many agencies are forced to compliance yet have not been provided with additional funding.

The solution to this is tiered API plans and pricing that acts like toll roads for the data flowing out.

As a nation that derives most of its revenue from taxation of citizens and businesses, a new revenue stream can be created from placing tolls on the government data that flows on the information superhighway.

The data flowing out of the US Govt Federal Agencies, States, and Cities is a valuable bi-product of government operations. All of that government “big data” can provide businesses, US and International, with critical information about how to optimize and improve their products and services.  For example, the insurance industry can fine-tune their rates for health and auto insurance policies based on crime data, census data, and IRS data.

Just as drivers pay access to use better and faster roads, data consumers (businesses or citizens alike) will pay for access to use better and faster data resources.  The driver license is represented in the form of an API Key.

The maps we plan out our driving trips are similar to how data is represented through an API Explorer.  The road speed limit signs are represented through API Throttling and Rate Limiting. Will the government eventually launch a Department of API Access, that provides a similar function to a Department of Motor Vehicles?

The tollbooths on the information superhighway are API Gateways, and to pass through either one, the government can require good old-fashioned monetary currency for access.

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