Which one of the following options is the best with regards to storing multiple connection string 1) Using connectionStrings
<connectionStrings>
<add name="Connection1" connectionString="SomeConnectionString"/>
</connectionString>
Or by Using application settings
<applicationSettings>
<API Service>
<settine name="server" serializeAs="String">
<value> Northwind </value>
</setting>
</applicationSettings>
In short, both will work just fine. However when using the connectionstrings section of your config file, you also have access to the providername attribute, which allows you to specify the data provider type for your connection (http://msdn.microsoft.com/en-US/library/htw9h4z3(v=VS.80).aspx).
Additionally, the connection string is a "string", but within .NET, there is also a parser that allows you to build up or break down connectionstrings, for example, SQL has the SqlConnectionStringBuilder class - http://msdn.microsoft.com/query/dev12.query?appId=Dev12IDEF1&l=EN-US&k=k(System.Data.SqlClient.SqlConnectionStringBuilder);k(TargetFrameworkMoniker-.NETFramework,Version%3Dv4.5);k(DevLang-VB)&rd=true
So using the parser, you can feed it your connection string and then request the various properties making up your connection string (such as, if you wanted to know the database name).
Some of you reading this may say "that doesn't have to be in the connection strings section of your web.config, it can be a string stored anywhere!". To that I say, you are correct, but if you are maintaining a config file, isn't it nice and neat and tidy to just keep your connection strings separate from your app settings?