REST and SOAP are different ways of transmitting data between two different systems via an API. REST is a set of architectural principles. SOAP is a protocol maintained by the World Wide Web Consortium.
SOAP and XML based Web Services aren't dead yet. I don't think they will be for quite a while because they are very common in large enterprises (government, banks, telecommunications, etc).
Designing by software is a contract - like a legal or business contract. When we design software by contract it means we are designing against a specific specification for each software component.
APIs come in many different styles and types. Before running into a style we need to understand the different options and the trade offs that we are making.
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