Webhooks are automated messages sent from one application to another when a specific event occurs. They allow real-time communication between different systems, enabling them to share data instantly without the need for constant polling. For example, when a user makes a purchase on an e-commerce site, a webhook can notify the inventory management system to update stock levels immediately. To use webhooks, developers set up a URL endpoint in their application that listens for incoming data. When the triggering event happens, the source application sends an HTTP request to this endpoint, delivering the relevant information. This process helps streamline workflows and improve efficiency across various platforms.