Q: What is MCP and how does it work?

MCP (Model Context Protocol) is an open standard for connecting AI agents to tools and data. Instead of writing custom integration code for every tool an agent needs, you connect the agent to MCP servers. Each server offers a set of tools, and any MCP-compatible agent can use them. MCP was introduced by Anthropic in late 2024, and the industry adopted it quickly.

MCP uses a client-server architecture, and there's an interesting detail here that surprises many engineers: in most setups, both the client and the server run locally on your own machine. There are three types of MCP servers. With type one, the server runs locally and works with local resources, like your file system. With type two, the server still runs locally, but it talks to external services over the internet. Only with type three does the server itself run remotely, hosted by someone else.