What does 'API' stand for in the context of software development?

API stands for Application Programming Interface in the context of software development. An API serves as a set of rules and protocols for building and interacting with software applications. It defines the methods and data formats that applications can use to communicate with each other, enabling different software components to work together.

Understanding APIs is crucial for developers, as they facilitate the integration of various services and applications, allowing for enhanced functionality and the ability to leverage existing software without having to build everything from scratch. By utilizing APIs, developers can access features or data of an operating system, application, or service, which can significantly streamline the development process and promote efficient coding practices. This collaborative aspect is what makes APIs a vital tool in modern software development.