containerd uses gRPC and protocol buffers to define its API. gRPC provides benefits like code generation, performance, and common standards. The containerd gRPC services include Execution, Shim, and Content, which define methods like Create, Start, and List. Protocol buffer definitions generate client and server code in various languages. Developers can build clients and extend containerd with new services. The containerd API is under active development and aims to stabilize before the 1.0 release while allowing backwards compatibility through gRPC versioning.