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What Is MCP: Model Context Protocol & What Does an MCP Server Do?

AI Agents · LLM Tooling · Security

What Is MCP: Model Context Protocol & What Does an MCP Server Do?

Updated: Aug 30, 2025 Read time: 9–11 mins Keywords: MCP, MCP server, AI agents

What is the Model Context Protocol (MCP)?

Model Context Protocol (MCP) is an open standard that defines a consistent, secure way for AI applications and agents to access external tools and data sources. In short, MCP is like a USB‑C for AI: a universal connector between LLMs and the real-world systems where your data and actions live.

Why it matters: With MCP, you can stop writing bespoke integrations for each model or app. Build once as a server, reuse everywhere as clients connect.

What is an MCP server?

An MCP server is the bridge that exposes tools (actions) and resources (data) — such as REST APIs, databases, or local files — to MCP clients (agentic apps, IDEs, or chat interfaces). The server defines the capabilities and schemas; the client discovers and safely invokes them.

Server responsibilities

  • Expose tool endpoints with clear input/output schemas
  • Advertise readable resources (e.g., files, tables)
  • Handle auth, rate limits, policy, and observability
  • Return structured results and actionable errors

Client responsibilities

  • Discover servers, list tools/resources
  • Decide when and how to call tools during reasoning
  • Render results to users and request additional consent when needed

MCP vs RAG vs function calling

When MCP shines

  • Actionable workflows: create tickets, run queries, send emails
  • Composable integrations: one server, many clients
  • Up-to-date context: live systems, no stale embeddings

When RAG or plain function calls are enough

  • Read-only search over large corpora (RAG)
  • Simple, app-specific actions tightly coupled to a single UI

Bottom line: RAG retrieves text; MCP provides structured tools & actions with standardized discovery, permissions, and schemas.

Architecture & core concepts

  • MCP client: the AI application/agent (e.g., desktop app, IDE, chat UI)
  • MCP server: component that exposes tools/resources via the protocol
  • Tools: parameterized actions (e.g., create_issue(repo, title))
  • Resources: readable context (e.g., files://specs/*.md, db://analytics/sessions)
  • Sessions: scoped interactions with lifetimes, policies, and logs
{
  "tool": {
    "name": "create_issue",
    "input_schema": {"type":"object","properties":{"repo":{"type":"string"},"title":{"type":"string"}}},
    "output_schema": {"type":"object","properties":{"url":{"type":"string"}}}
  },
  "resource": {
    "uri": "db://analytics/sessions",
    "schema": {"type":"array","items":{"type":"object"}}
  }
}

Practical use cases for MCP servers

  • Engineering productivity: repositories, CI/CD, issue trackers
  • Data & analytics: query warehouses, generate charts, schedule jobs
  • Customer ops: CRM updates, ticket summarization, outreach drafts
  • Knowledge ops: read knowledge bases and update runbooks
  • Security/IT: run scoped diagnostics, fetch logs, open incidents

Quickstart: build a basic MCP server

  1. Pick an SDK: Start with official TypeScript or Python server SDK.
  2. Define tools/resources: Focus on high-value actions with clear schemas.
  3. Guard access: Use API keys/OAuth, per-tool scopes, and allowlists.
  4. Test with a client: Connect via an MCP-enabled app/agent and verify flows.
  5. Harden: Add timeouts, rate limits, sandboxing, and injection scanning.
  6. Deploy: Ship behind a gateway; monitor logs and success/error rates.

Security risks & defenses (must‑read)

MCP unlocks write actions — which means threat modeling is essential. Start with least privilege and explicit user consent for sensitive tools.

  • Indirect prompt injection: Treat untrusted content as hostile; scan inputs and add content provenance checks.
  • Tool poisoning: Allowlist servers and signed tool manifests; pin versions and hashes.
  • Credential leakage: Use short‑lived tokens; never echo secrets back into model context.
  • Overbroad scopes: Give each tool the minimum set of permissions and rate limits.
Tip: Log every tool call (who, what, when, inputs/outputs) and alert on anomalies (spikes, unusual parameters, cross‑server chains).

FAQs

Is MCP a replacement for plugins?

MCP generalizes the idea: instead of per‑app plugins, a single server can serve many MCP‑capable clients with consistent discovery and schemas.

Do I still need RAG with MCP?

Often yes. Use RAG for large read‑only corpora; use MCP when the agent must act (create/update) or when you want standardized tool discovery.

Can MCP servers run locally?

Yes. Many teams start with local servers (e.g., file access) and later deploy to cloud with gateways, auth, and monitoring.

References

Zain Malik

Writer & Blogger

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