Model Context Protocol (MCP) explained: An FAQ

This post introduces and explains the Model Context Protocol (MCP), a new specification for standardizing how LLMs access data and systems. It details MCP's purpose in enabling safe, predictable interactions between AI and applications by exposing data sources, tools, and context. The post clarifies the difference between MCP servers and APIs, highlighting that MCP is designed for models. It explains the easiest ways to create an MCP server using the AI SDK and the open-source mcp-handler, and describes how MCP works for tools via a tool manifest and HTTP requests. It also differentiates between local and remote MCP servers and outlines use cases such as e-commerce, finance, and marketing, as well as how MCP will benefit everyday internet users by enabling smarter, more helpful AI features.