API Key – What is that?

Key
Web API’s
When used in the context of web development, an API is typically a defined set of Hypertext Transfer Protocol (HTTP) request messages along with a definition of the structure of response messages, usually expressed in an Extensible Markup Language (XML) or JavaScript Object Notation (JSON) format. While “Web API” is virtually a synonym for web service, the recent trend has been away from Simple Object Access Protocol (SOAP) based services towards more direct Representational State Transfer (REST) style communications. Web APIs allow the combination of multiple services into new applications known as mashups.
API’s are used from Credit Card processing to collecting visitor stats.
Twitter’s API
In Twitter’s case, they provide an API method for just about every feature you can see on their website. Programmers use the Twitter API to make applications, websites, widgets, and other projects that interact with Twitter. Programs talk to the Twitter API over HTTP, the same protocol that your browser uses to visit and interact with web pages.
