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"REST" is one of many way to implement APIs.

Exactly. It's confusing to talk about MCP vs API when "API" describes the whole class of possible values, of which "MCP" is one of them.

MCP is not strictly an API; it's a protocol shape (thus the "P" for Protocol) for delivering an API.

The API surface exists in the MCP payload.

Whereas application teams previously would have focused on APIs for external access, they now have to focus on MCP entry points (often to those same APIs, but with a different shape).

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