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+---
+title: "Part 3: Model Context Protocol (MCP): The protocol that powers AI agents"
+date: 2025-07-18T14:23:55.595Z
+author: Dinesh R Singh
+authorimage: /img/dinesh-192-192.jpg
+disable: false
+tags:
+  - Agentic AI
+  - Gen AI
+  - Qdrant
+  - MCP
+  - Communication Protocol
+  - "Model Context Protocol "
+---
+<style>
+li {
+   font-size: 27px;
+   line-height: 33px;
+   max-width: none;
+}
+</style>
+
+As AI agents grow beyond text generation into autonomous problem-solvers, a new challenge emerges — communication. Not between humans and AI, but between AI and the vast world of services, APIs, databases, and tools. That’s where **Model Context Protocol (MCP)** steps in.
+
+Inspired by [my post on medium](https://dineshr1493.medium.com/all-you-need-to-know-about-the-evolution-of-generative-ai-to-agentic-ai-part-3-mcp-model-context-f026578ff0dd), this blog post demystifies the MCP standard — reinterpreted with clarity, depth, and real-world relevance to help you understand how AI agents actually get things done.
+If LLMs are the brains, MCP is the nervous system connecting them to the real world. Let’s unpack how this protocol makes agentic AI functional, contextual, and enterprise-ready.
+
+<center><img src="/img/mcp1.png" width="600" height="550" alt="MCP Arch" title="MCP Arch"></center>
+
+## What is MCP, and why does it matter?
+
+At its core, MCP is a standardized way for AI agents to communicate with external services. Instead of treating each tool or database as a black box, MCP defines a consistent interface — allowing the agent to send structured requests and receive contextual responses.
+
+Imagine an agent saying:
+
+“Here’s the context, here’s what I need — now act smartly based on it.”
+
+That’s the essence of MCP. It removes ambiguity, reduces dependency on ad hoc code, and enables agents to **perform tasks with understanding, not just commands.**
+
+<center><img src="/img/mcp2.png" width="600" height="550" alt="MCP Flow" title="MCP Flow"></center>
+
+## The building blocks of MCP
+
+MCP is comprised of three major components:
+
+* MCP client: Resides inside the AI agent and is responsible for making requests.
+* MCP server: Wraps around external tools or services and handles incoming requests.
+* MCP protocol: Uses JSON-RPC over transport layers like:
+
+  * Standard IO for local service calls
+  * Server-Sent Events (SSE) for remote or network-based integrations.
+
+<center><img src="/img/mcp3.png" width="600" height="550" alt="MCP Working" title="MCP Working"></center>
+
+## How MCP works — The flow
+
+Here’s a simplified view of the interaction:
+
+1. The agent asks its MCP client to perform a task.
+2. The MCP client sends a well-formed JSON-RPC request to the MCP server.
+3. The MCP server either:
+
+   * Executes a tool (e.g., semantic_search)
+   * Fetches data (e.g., a file or DB record)
+   * Returns a structured prompt (e.g., a Q&A template)
+4. The MCP server streams back results or updates.
+5. The agent uses this data to reflect, re-plan, or execute the next step.
+
+This architecture ensures that AI agents don’t just interact with data — they do so with awareness and strategy.
+
+## MCP + Reflection + Meta-Context = Smarter AI
+
+What separates MCP from basic APIs is its inclusion of **meta-context and reflection:**
+
+* **Meta-Context:** Includes user role, session history, intent, and environment details.
+* **Reflection:** Agents can evaluate responses. If a query fails, they can retry with a better approach.
+* **Context-Aware Tools:** MCP servers can use meta-data to dynamically tailor responses.
+* **Tool Discovery:** Agents can ask, “What tools are available right now?” and adjust plans accordingly.
+
+This turns the agent into a **situationally aware operator**, not just a command runner.
+
+## The race of MCP
+
+Curious about the groundbreaking ***startups racing to develop the next wave of MCP*** (Model Context Protocol) servers? In this roundup, we highlight the most innovative players redefining how AI agents access, interact with, and orchestrate information across tools, databases, financial platforms, and more. For each startup, you’ll find a brief overview of their core technology, real-world use cases, and direct links to explore their solutions further.
+
+Whether you're an AI developer, tech enthusiast, or enterprise looking to supercharge your workflows, discover how these emerging MCP platforms are shaping the future of AI-driven connectivity—unlocking seamless integrations and unprecedented automation across industries.
+
+<table>
+  <thead style="background-color:#f2f2f2">
+    <tr>
+      <th>Startup</th>
+      <th>Description</th>
+      <th>Tech Focus</th>
+      <th>Use Case</th>
+      <th>Website</th>
+    </tr>
+  </thead>
+  <tbody>
+    <tr>
+      <td><strong>Anthropic</strong></td>
+      <td>Creators of MCP and Claude AI</td>
+      <td>AI Research & Safety</td>
+      <td>Secure tool access via MCP for Claude AI</td>
+      <td><a href="https://anthropic.com">anthropic.com</a></td>
+    </tr>
+    <tr>
+      <td><strong>Replit</strong></td>
+      <td>Cloud IDE with AI capabilities</td>
+      <td>Developer Tools & AI Agents</td>
+      <td>MCP-powered code assistant in their IDE</td>
+      <td><a href="https://replit.com">replit.com</a></td>
+    </tr>
+    <tr>
+      <td><strong>Sourcegraph</strong></td>
+      <td>Code intelligence & search platform</td>
+      <td>Developer Productivity</td>
+      <td>MCP to connect AI to codebases & tickets</td>
+      <td><a href="https://sourcegraph.com">sourcegraph.com</a></td>
+    </tr>
+    <tr>
+      <td><strong>Qdrant</strong></td>
+      <td>Open-source vector database</td>
+      <td>AI Infrastructure (RAG)</td>
+      <td>MCP server for semantic memory in agents</td>
+      <td><a href="https://qdrant.tech">qdrant.tech</a></td>
+    </tr>
+    <tr>
+      <td><strong>Neon</strong></td>
+      <td>Serverless Postgres provider</td>
+      <td>Databases (Postgres Cloud)</td>
+      <td>MCP for AI-driven Postgres analytics & ops</td>
+      <td><a href="https://neon.tech">neon.tech</a></td>
+    </tr>
+  </tbody>
+</table>
+
+## Real-world applications of MCP
+
+1. **Faster integrations**
+   Instead of hard-coding APIs, developers can plug agents into pre-wrapped MCP servers. This dramatically shortens time-to-integration.
+2. **Live data access**
+   Agents can now access up-to-date information from production-grade systems — avoiding stale, hallucinated responses.
+3. **Enterprise control**
+   MCP enables governance: every action is logged, controlled, and auditable — essential for security-conscious environments.
+4. **Cross-agent compatibility**
+   Build a tool once, and any MCP-compliant agent can use it. No more agent-specific wrappers.
+
+### **Case study: Qdrant with MCP**
+
+**Qdrant** is a vector database used for semantic search. Here’s how it operates under MCP:
+
+1. MCP server exposes a tool like semantic_search(query: str).
+2. Agent calls: semantic_search("incident policy").
+3. Qdrant streams back relevant documents in real-time.
+4. The agent uses those documents as dynamic context to reason or response.
+
+This is vector search integrated into an agentic loop — not just storage, but intelligence.
+
+### Case study: PostgreSQL with MCP
+
+A **Postgres MCP Server** might expose methods such as:
+
+* get_sales(region: str, quarter: str).
+* run_query(sql: str).
+
+An agent could now answer a prompt like:
+
+“What were APAC sales in Q4?”
+
+The Postgres MCP Server abstracts the SQL, safely executes it, and returns clean, structured results — instantly usable by the agent.
+
+**Leading startups driving MCP adoption**
+
+While **Part 8** will go deeper into startup ecosystems, here are some notable names in the industry who are building or supporting MCP infrastructure:
+
+* Qdrant
+* LangChain
+* AutoGen by Microsoft
+* OpenDevin
+* Auto-GPT (community forks)
+
+These players are shaping a plug-and-play AI world where tools and agents speak a common protocol.
+
+## Conclusion
+
+MCP is more than a technical standard — it's a **philosophy of interoperability** for the agentic era. It shifts AI from being a passive responder to an active participant in real-world systems. With MCP, agents don’t just have the ability to talk — they gain the **power to think, act, adapt, and connect** meaningfully.
+
+As we continue this series, [the next chapter](https://developer.hpe.com/blog/part-4-the-rise-of-agentic-ai-and-the-power-of-the-agno-framework/) will spotlight a top Agentic AI framework and reveal how it uses MCP to orchestrate intelligent, autonomous workflows across environments.
+
+> *If you’re building with AI — or planning to — MCP is the connective tissue you can’t afford to ignore.*