I'm providing a RESTful API. This API is used by a third party desktop application. The API is currently secured using Basic Authentication. That isn't very secure because the credentials have to be stored in the client application. The communication between the desktop app and the API can also easily be intercepted.
The desktop application also communicates with a third party server (run by the publisher of the desktop application)
I am unable to figure out how the secure the API in a good way. Ideas?