After doing a bit of research API's (application programming interface) are an interface which enables the interaction between different software. The range of uses is vast, from anything between desktop publishing to social networking.
The use of APIs to share content
The practice of publishing APIs has allowed web communities to create an open architecture for sharing of content and data between communities and applications. In this way, content that is created in one place can be dynamically posted and/or updated in multiple locations on the web. Photos can be shared from sites like Flickr and Photobucket to Social Network sites like Facebook and MySpace. Content can be embedded, Here is an example of a presentation embedded by SlideShare on Linked-in:Embedded Slide Show in a Profile. Content can be dynamically posted. Sharing comments made on Twitter to a Facebook account for example is enabled by Twitter and Facebook's APIs. Video content can be embedded on sites, in this example of an embedded YouTube Video, where the content is served by YouTube on a third party site Embedded Video Content Example‚Ä®. User information can be shared from web communities to outside applications, delivering new functionality to the web community that shared its user data via an open API. One of the best examples of this is the Facebook Application platform. Another is the Open Social platform. wiki
I need to now think up ideas of how I could make a useful API and what software it would interact with and for what purpose. I could make an application that is entertaining like a game of some sort, or I could create something to let users communicate and share content.
But all in all, it has to be different and a step forward than the current APIs out there.
Lets get to work.