How do you optimize the performance of a RESTful API?
- Reduce payload size (use JSON instead of XML, compress responses).
- Implement pagination for large datasets.
- Apply caching at multiple levels.
- Use async I/O (non-blocking calls).
- Minimize database calls (batch queries, stored procedures).
- Enable GZIP compression on responses.
- Profile and monitor using APM tools (New Relic, Application Insights).