API Authentication VS. Authorization | Differences in Security You Should Know

API authentication and authorization work hand in hand to ensure which users can access the APIs and the corresponding data, along with what users can do with them. Understand more about API security by reading this article!

Steven Ang Cheong Seng

Steven Ang Cheong Seng

15 May 2025

API Authentication VS. Authorization | Differences in Security You Should Know

Many applications rely on APIs (Application Programming Interfaces) to exchange data and functionality. But with this convenience comes the responsibility of securing these interactions. Two critical concepts in API security are authentication and authorization, which often get confused. This article will explain the subtle differences between these two processes, ensuring you can distinguish the two concepts from one another.

💡
Authentication and authorization are two fundamental elements in any API. Protecting your consumers' and their data is essential for any API to be implementable.

To ensure that your APIs do have the necessary security, you should consider Apidog, an all-in-one API development tool that provides users a platform to select what type of authentication and security the developer desires.

If you are interested in knowing more about Apidog, try it today for free by clicking on the button below!
Apidog An integrated platform for API design, debugging, development, mock, and testing
REAL API Design-first Development Platform. Design. Debug. Test. Document. Mock. Build APIs Faster & Together.
button

What is API Authentication?

API authentication is the security process of verifying the identity of a user or application attempting to access an API. This verification process typically involves confirming the user's or application's credentials against a trusted source, such as a username/password combination, an API key, or a security token issued by an authorization server.

The primary objective of API authentication is to ensure that only authorized users or applications can access the API's resources. It acts as the first layer of security, establishing who is trying to interact with the API.

10 API Authentication Best Practices for Securing APIs
Explore the top best practices for API authentication to secure your digital assets. Learn how tools like Apidog enhance API security, ensuring compliance.

Process of API Authentication

1. Request with Credentials: When an application or user wants to access the API, they initiate a request. This request includes authentication credentials that verify their identity. These credentials come in various forms depending on the chosen method:

2. Verification by API: The API receives the request and puts the provided credentials through a verification process:

API Keys/Tokens: The API validates if the key/token is:

Username/Password: The API checks if the username and password match a registered user in its database. This might involve secure password hashing techniques to protect user credentials.

Granting or Denying Access:

Advantages of API Authentication

Improved Security

The primary benefit of API authentication lies in its ability to fortify the overall security posture of an API. It acts as a vigilant gatekeeper, meticulously scrutinizing every access attempt. Only authorized applications and users wielding valid credentials are granted access, while any unauthorized attempts are resolutely thwarted.

This significantly diminishes the risk of data breaches, where malicious actors attempt to steal, manipulate, or tamper with sensitive information. By implementing a robust authentication mechanism, organizations can establish a secure environment for data exchange, fostering trust with users and stakeholders.

Improved Accountability and Traceability

API authentication meticulously chronicles access attempts, meticulously logging who is accessing the API and at what precise time. This granular data stream furnishes organizations with invaluable insights for activity monitoring. Potential security threats can be swiftly identified and addressed by analyzing these logs. Furthermore, API authentication fosters accountability among users and applications.

If any unauthorized actions are attempted, the logs provide an audit trail, pinpointing the source of the issue and enabling prompt corrective measures. This not only safeguards data but also deters unauthorized access attempts, as users are aware that their actions are being monitored.

Improved User Trust

The implementation of a robust API authentication mechanism communicates a crystal-clear message – user data security is a top priority. By employing rigorous verification procedures, organizations demonstrate their unwavering commitment to protecting user information.

This instills confidence in users, assuring them that their data is shielded behind a secure authentication layer. Consequently, user satisfaction and loyalty are likely to flourish, as users feel secure in interacting with the API.

Improved Data Privacy

Numerous industries operate within the purview of stringent data privacy regulations. These regulations often mandate the enforcement of robust security measures to safeguard user data. API authentication plays a pivotal role in ensuring compliance with these regulations.

By meticulously verifying user identities and access attempts, organizations can demonstrate their adherence to data privacy requirements, mitigating potential legal ramifications and fostering trust with regulatory bodies.

Examples of API Authentication

1. API Keys:

Benefits:

Drawbacks:

2. Tokens:

Benefits:

Drawbacks:

3. Username and Password:

Benefits:

Drawbacks:

What is API Authorization?

API authorization is the security process of verifying what level of access a previously authenticated user of an application has to specific resources or functionalities within an API.

API authorization process enforces access control policies that determine the permitted actions (such as reading, writing, updating, and deleting) a user or application can perform on specific data or functionalities exposed by the API.

API Authorization: Definition, Types, and Best Practices
This article provides an overview of Authorization in APIs, covering the types of authorization such as API Key, OAuth 1.0, JWT, and Basic Authentication. It also explains how to implement authorization in APIs by determining the method, implementation, and testing.

Process of API Authorization

1. Access Request:

2. Authentication Check (Optional):

3. Authorization Policy Evaluation:

4. Access Decision:

5. Resource Access (or Error Response):

Additional Considerations:

Key Benefits of API Authorization

Enhanced Security:

Improved User Trust:

Increased Efficiency and Scalability:

Additional Advantages:

Real-world Examples of API Authorization

E-commerce Platform:

Social Media App:

Banking Application:

Scenario: A mobile banking app interacts with a bank's API to view account balances and transfer funds.

Authorization: The API likely employs a combination of methods.

Security Focus: For financial institutions, robust API authorization is critical to safeguard sensitive user data and prevent unauthorized transactions.

Tabulated Differences Between API Authentication VS. Authorization

Feature API Authentication API Authorization
Purpose Verifies the identity of a user or application trying to access an API. Determines what level of access a previously authenticated user or application has to specific resources or functionalities within an API.
Focus "Who are you?" "What are you allowed to do?"
Process User/application provides credentials (username/password, API key, token), and API server verifies credentials against a trusted source. Access control policies define permitted actions for different user roles or applications, and user/application attributes (roles, permissions, context) are evaluated against these policies.
Outcome Grants access to the authorization stage (if successful). Grants or denies access to specific resources or functionalities within the API.
Example Methods Username/password combinations, and API keys - Security tokens issued by an authorization server (e.g., OAuth) Roles-Based Access Control (RBAC), Attribute-Based Access Control (ABAC), and API keys (can sometimes handle both authentication and authorization)
Relationship Often precedes authorization Works in conjunction with authentication (not always required)

Apidog - Enforce Your API's Security with API Authentication and Authorization!

Setting up adequate security for your API is often a commonly overlooked aspect of API development. However, providing proper security to ensure that the API and the consumer's information are safe is essential. This is why you need to select and use an API tool like Apidog.

apidog interface
Apidog An integrated platform for API design, debugging, development, mock, and testing
REAL API Design-first Development Platform. Design. Debug. Test. Document. Mock. Build APIs Faster & Together.
button

Setting Up API Authentication On Apidog

selecitng authentication method with apidog

With Apidog, you can edit specific APIs' authentication methods. There are several choices for you to select from. To access this part of Apidog, you need to first:

  1. Select an API.
  2. Click the Edit heading.
  3. Scroll down to the Request section.
  4. Click the Auth header.
  5. Finally, select which Type of authentication you like.
button

Testing API Endpoints Using Apidog

To ensure that the APIs you have developed run smoothly, you can test their endpoints individually with Apidog!

To target the correct API endpoint, you first have to insert the corresponding API endpoint that you want to test. Once you have included the intended API URL, include the parameters that you want to use for the endpoint (if relevant).

In case you are unfamiliar with passing multiple parameters in an API URL, check out this article to find out how you can specifically target a resource inside a rich collection of data!

Tutorial: How to Pass Multiple Parameters in REST API URLs?
Two commonly seen parameter types are widely used in modern websites. Although they slightly differ based on their functions, parameters help developers identify specific resources found within a collection or system.

Conclusion

API authentication and authorization are two critical security measures that work in tandem to safeguard your API. Authentication verifies the identity of users or applications attempting to access your API, acting as the first line of defense. Authorization then determines what level of access these authenticated users or applications have to specific resources or functionalities within the API.

By implementing robust authentication and authorization mechanisms, you can ensure that only authorized users can interact with your API, protecting sensitive data and maintaining the integrity of your system. This not only enhances security but also fosters trust among users who can be confident their information is well-protected.

Ensure that all your APIs are protected with sufficient layers of security. If you need an API tool to bolster your API's protection, you can use Apidog to apply API authentication!

Apidog An integrated platform for API design, debugging, development, mock, and testing
REAL API Design-first Development Platform. Design. Debug. Test. Document. Mock. Build APIs Faster & Together.

Explore more

Top 10 Stablecoin APIs for Developers

Top 10 Stablecoin APIs for Developers

Stablecoins have become a vital component of the cryptocurrency ecosystem, offering traders and developers a way to mitigate market volatility while still benefiting from blockchain technology. Whether you are designing a payment solution, executing automated trading strategies, or providing real-time market analytics, incorporating stablecoin APIs into your platform can help streamline processes and enhance functionality. In this article, we explore the top 10 stablecoin trading APIs for develo

31 May 2025

Top 10 Best Online Sports Betting APIs / Sports Odds APIs 2025

Top 10 Best Online Sports Betting APIs / Sports Odds APIs 2025

The online sports betting industry is evolving at an unprecedented pace, and with it comes the need for robust, real-time data integration. In 2025, sports betting APIs and sports odds APIs are more vital than ever for bookmakers, developers, and betting enthusiasts. This article dives into the top 10 online sports betting APIs that are set to shape the industry this year, with betcore.eu proudly leading the pack as the number one choice. With technology continually advancing and customer expec

31 May 2025

Vibetest-Use MCP Server: AI Powered QA Testing

Vibetest-Use MCP Server: AI Powered QA Testing

Master QA with Vibetest-use MCP! This tutorial shows how to use Browser-Use to automate website testing, catching 404s, dead buttons, and UI glitches in under 60 seconds.

30 May 2025

Practice API Design-first in Apidog

Discover an easier way to build and use APIs