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---
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title: "Model Context Protocol (MCP): The Protocol That Powers AI Agents"
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date: 2025-07-18T14:23:55.595Z
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author: Dinesh R Singh
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authorimage: /img/dinesh-192-192.jpg
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disable: false
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tags:
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- Agentic AI
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- Gen AI
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- Qdrant
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- MCP
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- Communication Protocol
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- "Model Context Protocol "
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---
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<style>
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li {
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font-size: 27px;
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line-height: 33px;
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}
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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 **MCP (Model Context Protocol)** steps in.
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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 demystifies the MCP standard — reinterpreted with clarity, depth, and real-world relevance to help you understand how AI agents actually get things done.
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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.
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<center><img src="/img/mcp1.png" width="600" height="550" alt="MCP Arch" title="MCP Arch"></center>
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## What is MCP, and why does it matter?
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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.
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Imagine an agent saying:
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“Here’s the context, here’s what I need — now act smartly based on it.”
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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.**
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<center><img src="/img/mcp2.png" width="600" height="550" alt="MCP Flow" title="MCP Flow"></center>
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## The building blocks of MCP
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MCP is composed of three major components:
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* MCP Client: Resides inside the AI agent and is responsible for making requests.
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* MCP Server: Wraps around external tools or services and handles incoming requests.
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* MCP Protocol: Uses JSON-RPC over transport layers like:
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* Standard IO for local service calls
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* Server-Sent Events (SSE) for remote or network-based integrations.
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<center><img src="/img/mcp3.png" width="600" height="550" alt="MCP Working" title="MCP Working"></center>
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## How MCP works — The flow
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Here’s a simplified view of the interaction:
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1. The agent asks its MCP Client to perform a task.
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2. The MCP Client sends a well-formed JSON-RPC request to the MCP Server.
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3. The MCP Server either:
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1. Executes a tool (e.g., semantic_search)
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2. Fetches data (e.g., a file or DB record)
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3. Returns a structured prompt (e.g., a Q&A template)
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4. The MCP Server streams back results or updates.
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5. The agent uses this data to reflect, re-plan, or execute the next step.
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This architecture ensures that AI agents don’t just interact with data — they do so with awareness and strategy.
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## MCP + Reflection + Meta-Context = Smarter AI
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What separates MCP from basic APIs is its inclusion of **meta-context and reflection:**
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* **Meta-Context:** Includes user role, session history, intent, and environment details.
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* **Reflection:** Agents can evaluate responses. If a query fails, they can retry with a better approach.
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* **Context-Aware Tools:** MCP Servers can use meta-data to dynamically tailor responses.
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* **Tool Discovery:** Agents can ask, “What tools are available right now?” and adjust plans accordingly.
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This turns the agent into a **situationally aware operator**, not just a command runner.
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<table>
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<thead style="background-color:#f2f2f2">
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<tr>
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<th>Startup</th>
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<th>Description</th>
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<th>Tech Focus</th>
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<th>Use Case</th>
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<th>Website</th>
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</tr>
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</thead>
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<tbody>
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<tr>
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<td><strong>Anthropic</strong></td>
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<td>Creators of MCP and Claude AI</td>
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<td>AI Research & Safety</td>
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<td>Secure tool access via MCP for Claude AI</td>
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<td><a href="https://anthropic.com">anthropic.com</a></td>
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</tr>
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<tr>
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<td><strong>Replit</strong></td>
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<td>Cloud IDE with AI capabilities</td>
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<td>Developer Tools & AI Agents</td>
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<td>MCP-powered code assistant in their IDE</td>
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<td><a href="https://replit.com">replit.com</a></td>
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</tr>
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<tr>
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<td><strong>Sourcegraph</strong></td>
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<td>Code intelligence & search platform</td>
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<td>Developer Productivity</td>
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<td>MCP to connect AI to codebases & tickets</td>
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<td><a href="https://sourcegraph.com">sourcegraph.com</a></td>
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</tr>
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<tr>
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<td><strong>Qdrant</strong></td>
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<td>Open-source vector database</td>
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<td>AI Infrastructure (RAG)</td>
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<td>MCP server for semantic memory in agents</td>
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<td><a href="https://qdrant.tech">qdrant.tech</a></td>
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</tr>
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<tr>
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<td><strong>Neon</strong></td>
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<td>Serverless Postgres provider</td>
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<td>Databases (Postgres Cloud)</td>
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<td>MCP for AI-driven Postgres analytics & ops</td>
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<td><a href="https://neon.tech">neon.tech</a></td>
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</tr>
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</tbody>
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</table>
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## Real-World applications of MCP
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1. **Faster Integrations**
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Instead of hard-coding APIs, developers can plug agents into pre-wrapped MCP servers. This dramatically shortens time-to-integration.
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2. **Live Data Access**
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Agents can now access up-to-date information from production-grade systems — avoiding stale, hallucinated responses.
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3. **Enterprise Control**
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MCP enables governance: every action is logged, controlled, and auditable — essential for security-conscious environments.
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4. **Cross-Agent Compatibility**
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Build a tool once, and any MCP-compliant agent can use it. No more agent-specific wrappers.
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### **Case Study: Qdrant with MCP**
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**Qdrant** is a vector database used for semantic search. Here’s how it operates under MCP:
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* MCP Server exposes a tool like semantic_search(query: str)
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* Agent calls: semantic_search("incident policy")
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* Qdrant streams back relevant documents in real-time
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* The agent uses those documents as dynamic context to reason or respone
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This is vector search integrated into an agentic loop — not just storage, but intelligence.
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### Case Study: PostgreSQL with MCP
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A **Postgres MCP Server** might expose methods such as:
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* get_sales(region: str, quarter: str)
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* run_query(sql: str)
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An agent could now answer a prompt like:
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“What were APAC sales in Q4?”
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The Postgres MCP Server abstracts the SQL, safely executes it, and returns clean, structured results — instantly usable by the agent.
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**Leading startups driving MCP adoption**
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While Part 8 will go deeper into startup ecosystems, here are some notable names building or supporting MCP infrastructure:
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* Qdrant
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* LangChain
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* AutoGen by Microsoft
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* OpenDevin
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* Auto-GPT (community forks)
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These players are shaping a plug-and-play AI world where tools and agents speak a common protocol.
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## Conclusion
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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.
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As we continue this series, the next chapter will spotlight a top Agentic AI framework and reveal how it uses MCP to orchestrate intelligent, autonomous workflows across environments.
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> ####
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> If you’re building with AI — or planning to — MCP is the connective tissue you can’t afford to ignore

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