This is a requirement of the RIT OLPC seminar. The question is a bit different for the API team, a more applicable solution would be “How development of the API is done?” and “How do activity developers include / extend our API?”.
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* The API is written in Python, has a set of dependencies (which are documented on the Question Support API wiki above)
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* For activity developers to include our API into an activity, we're hoping to have the Sugar development team include our libraries into Sugar's main packages. Greg Steven's has a bit more knowledge on this than I, but I believe both of us will be looking into how to simply package our API, and how it can be accessed by other Activities. The issue with this later concept, is that Activities running on Sugar's platform is designed specifically to limit each activity to it's own space inside of the Sugar environment. This means that we'll either need to hack something together to make other activities include our API, or we'll need to speak to people at Sugar and figure out the best practice for to implement.