Software versioning is the process of assigning either unique version names or unique version numbers to unique states of computer software. Within a given version number category (major, minor), these numbers are generally assigned in increasing order and correspond to new developments in the software.

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Versioning of API is very much required if you are providing services for the public. It's the only way we can make our API's supporting forward and backward compatibility. By versioning you don't effect the existing customers and break their applications which depends on your API.