Kronos Research, a Taipei-based trading firm, market maker, and VC fund

Was hacked after an attacker gained access to Kronos’s API keys, the company said in a post on X. Blockchain researcher ZachXBT estimated the total loss at $25 million, which Kronos said does not reflect a significant portion of their equity.

WHAT ARE API KEYS?

API keys, or application programming interface keys, are unique identifiers used to authenticate and control access to an application programming interface (API). APIs are sets of rules and protocols that allow different software applications to communicate with each other, and API keys serve as a way to ensure that the access to the API is authorized and secure.

Here are some key aspects of API keys:

Authorization: API keys are used to authenticate and authorize access to an API, ensuring that only authorized users or applications can utilize the API's functionalities.

Security: API keys help regulate and control access to the API to prevent unauthorized use, misuse, or abuse. They act as a form of access control by providing a way to track and manage usage.

Usage Tracking: API keys allow API providers to monitor and track how their API is being used, including tracking rates of usage, identifying usage patterns, and understanding which users or applications are accessing the API.

Integration: For developers and organizations using an API, API keys are typically used as part of the process of integrating the API into their software applications, allowing them to make authenticated requests to the API.

Key Management: Proper management of API keys is crucial for security. This includes securely storing and transmitting keys, rotating keys regularly for added security, and revoking keys in the event of unauthorized access or other security concerns.

API keys are commonly used in various industries and application domains, including web and mobile applications, cloud services, IoT (Internet of Things), and more. They play a vital role in ensuring secure and controlled access to the data and functionality exposed by APIs.