Model Context Protocol (MCP): Standardization, Examples and Monetization

Lecture 14 min.



The Model Context Protocol ( MCP ) is an open standard and open-source framework introduced by Anthropic in November 2024 to standardize the way artificial intelligence (AI) systems, such as large language models (LLMs), integrate and exchange data with external tools, systems, and data sources. MCP provides a standardized interface for reading files, executing functions, and handling contextual prompts. After its announcement, the protocol was adopted by major AI providers, including OpenAI and Google DeepMind .

Model Context Protocol (MCP) is a protocol for exchanging context between a language model and external resources. Its main purpose is to give the model structured access to data and tools while it processes a user's request.

Compared with traditional approaches, MCP can be seen as the equivalent of the USB standard in the world of artificial intelligence. Instead of building many unique integrations for every model and every service, developers get a single interface for interaction.

The main functions of MCP:

  • passing context to the language model;
  • real-time access to external data;
  • calling tools and functions;
  • managing access permissions;
  • standardizing interaction between AI and software systems.

Model Context Protocol (MCP): Standardization, Examples and Monetization

MCP Architecture

The architecture of the protocol usually includes three main components:

1. MCP Client

The client is an application or AI assistant that initiates requests to external resources. For example, a chatbot can contact an MCP server to retrieve information from a corporate knowledge base.

2. MCP Server

The MCP server acts as an intermediary between the language model and data sources. It provides access to resources and tools through a standardized interface.

3. Resources and Tools

Resources can be:

  • documents;
  • databases;
  • file systems;
  • APIs of external services;
  • corporate knowledge.

Tools make it possible to perform actions:

  • running SQL queries;
  • sending messages;
  • managing calendars;
  • creating tasks;
  • performing calculations.

How MCP Works

A typical scenario looks like this:

  1. The user asks a question.
  2. The language model determines that it needs to access external data.
  3. A request is sent through MCP to the appropriate server.
  4. The server retrieves the data from the source.
  5. The information obtained is returned to the model.
  6. The model generates the final answer for the user.

In this way, the model gains access to up-to-date data and is not limited to the information it acquired during training.

Fundamentals

MCP was announced by Anthropic in November 2024 as an open standard for connecting AI assistants to data systems such as content repositories , business management tools , and development environments . The protocol was created at Anthropic by engineers David Soria Parra and Justin Spahr-Summers . It is intended to solve the problem of information silos and legacy systems . Before MCP, developers often had to build custom connectors for each data source or tool, which led to what Anthropic described as the "N×M" data integration problem .

Earlier stopgap solutions, such as OpenAI's 2023 "function calling" API and the ChatGPT plugins platform, addressed similar problems but required vendor-specific connectors. MCP reuses the message-flow ideas of the Language Server Protocol (LSP) and is transported over JSON-RPC 2.0.

In December 2025, Anthropic donated MCP to the Agentic AI Foundation (AAIF), a directed fund under the Linux Foundation , co-founded by Anthropic, Block, and OpenAI with the support of other companies.

Features

The protocol was released together with software development kits (SDKs) in programming languages including Python , TypeScript , C# , and Java . Anthropic maintains an open-source repository containing reference MCP server implementations and SDKs.

MCP defines a standardized framework for integrating AI systems with external data sources and tools. It includes specifications for data ingestion and transformation , contextual metadata tagging, and AI interaction across different platforms. The protocol also supports bidirectional connections between data sources and AI tools. [ non-primary source needed ]

MCP enables applications such as querying structured databases in plain language in the field of natural-language data access.

The protocol is used in AI-assisted software development tools . Integrated development environments (IDEs), coding platforms such as Replit , and code analysis tools such as Sourcegraph have implemented MCP to give AI coding assistants real-time access to project context.

MCP Apps is an official extension of the Model Context Protocol, built on top of mcp-ui. While the base MCP specification is limited to text and structured data, MCP Apps standardizes the delivery of interactive user interfaces, such as dashboards, forms, and data visualizations, from MCP servers to host applications such as Claude and ChatGPT .

Adoption

In March 2025, OpenAI officially adopted MCP, integrating the standard across all of its products, including the ChatGPT desktop app . In September 2025, OpenAI added MCP support to ChatGPT apps. This allows third-party developers to access ChatGPT.

MCP can be integrated with Microsoft Semantic Kernel and Azure OpenAI . MCP servers can be deployed on Cloudflare . [ non-primary source needed ]

In April 2026, the AAIF held the MCP Dev Summit North America in New York, bringing together about 1,200 participants.

Reception

The Verge reported that MCP meets the growing demand for AI agents that are context-aware and able to retrieve information from a variety of sources.

In April 2025, security researchers published an analysis concluding that MCP has numerous unresolved security issues, including prompt injection , tool permissions that allow combining tools to exfiltrate data , and lookalike tools that can silently replace trusted ones .

MCP is compared to OpenAPI , a similar specification designed to describe APIs.

Limitations of MCP

Despite its advantages, the protocol has a number of limitations:

  • server infrastructure must be set up;
  • connection security must be ensured;
  • delays are possible when accessing external systems;
  • the quality of the response depends on the quality of the connected data sources.

In addition, MCP does not replace the language model itself; it only extends its capabilities by providing access to external context.

Advantages of MCP

Universality

A developer only needs to implement MCP support once, after which the integration can be used with various AI models.

Scalability

New data sources can be connected without changing the logic of the model itself.

Security

The protocol provides mechanisms for authentication, authorization, and access control for data.

Up-to-date information

The model receives data directly from the source at the moment of the request.

Reduced costs

There is no need to constantly retrain models when corporate data changes.

Development Prospects

As the number of AI applications grows, so does the need for unified integration standards. MCP has the potential to become a universal protocol for interaction between language models and the digital infrastructure of organizations.

In the future we can expect:

  • expansion of the MCP server ecosystem;
  • the emergence of industry-specific integration standards;
  • improved security mechanisms;
  • support for more complex business process automation scenarios.

Examples of Using MCP

Example 1. Working with corporate documentation

Suppose an employee of a company asks:

"What is the procedure for arranging a business trip?"

Through MCP, the language model contacts the company's internal document repository, finds the current policy, and generates an answer based on the latest version of the document.

Advantages:

  • no need to train the model on internal data;
  • use of up-to-date documents;
  • centralized access management.

Example 2. Database integration

The user asks a question:

"How many orders were placed in the last month?"

Through MCP, the model gains access to a tool for running SQL queries. The server runs the query against the database and returns the result, which is then shown to the user in a convenient form.

Example 3. Working with a task management system

A manager can write:

"Create a task for the marketing department to prepare a report by Friday."

Through MCP, the model calls a task management tool and automatically creates the corresponding entry in the corporate system.

Example 4. Calendar integration

User request:

"Schedule a meeting with the team for next Tuesday at 2:00 PM."

Through MCP, a calendar service is accessed, the availability of participants is checked, and an event is created.

Example 5. Connecting to cloud services

The model can access:

  • Google Drive;
  • GitHub;
  • Notion;
  • Jira;
  • Slack;
  • CRM systems.

Each integration is implemented through a single interaction mechanism.

What Is Standardized in MCP

The MCP standard defines:

1. Transport

Several options are supported:

  • STDIO (local process)
  • HTTP + SSE
  • Streamable HTTP (the newer option)
  • WebSocket (in some implementations)

That is, transport is only partially standardized.

2. Message format

MCP is based on JSON-RPC 2.0.

A request looks like this:

{
  "jsonrpc": "2.0",
  "id": 1,
  "method": "tools/list",
  "params": {}
}

Response:

{
  "jsonrpc": "2.0",
  "id": 1,
  "result": {
    "tools": []
  }
}

Fields:

Field Required
jsonrpc Yes
id Yes
method Yes
params No

This is part of the standard.

3. A set of system methods

For example:

initialize
tools/list
tools/call
resources/list
resources/read
prompts/list
prompts/get

They are defined by the MCP specification.

4. Capability Negotiation

When connecting, the parties agree on their capabilities.

Request:

{
  "jsonrpc": "2.0",
  "id": 1,
  "method": "initialize",
  "params": {
    "protocolVersion": "2025-03-26",
    "capabilities": {
      "tools": {},
      "resources": {}
    },
    "clientInfo": {
      "name": "MyAI",
      "version": "1.0"
    }
  }
}

Response:

{
  "jsonrpc": "2.0",
  "id": 1,
  "result": {
    "protocolVersion": "2025-03-26",
    "capabilities": {
      "tools": {},
      "resources": {}
    },
    "serverInfo": {
      "name": "CRM MCP",
      "version": "1.0"
    }
  }
}

This is also part of the standard.

What Is NOT Standardized

Tool names

You can declare any tool:

{
  "name": "get_customer"
}

or

{
  "name": "search_documents"
}

or

{
  "name": "create_invoice"
}

This is entirely up to the developer.

Parameter schemas

For example:

{
  "name": "get_customer",
  "inputSchema": {
    "type": "object",
    "properties": {
      "customerId": {
        "type": "string"
      }
    }
  }
}

The customerId field was invented by the developer.

MCP only requires the use of JSON Schema.

Business logic

For example:

get_customer
create_order
send_email

These are not part of the standard.

An Example of a Complete Scenario

Step 1. Getting the list of tools

Request:

{
  "jsonrpc": "2.0",
  "id": 10,
  "method": "tools/list"
}

Response:

{
  "jsonrpc": "2.0",
  "id": 10,
  "result": {
    "tools": [
      {
        "name": "get_customer",
        "description": "Get a customer",
        "inputSchema": {
          "type": "object",
          "properties": {
            "customerId": {
              "type": "string"
            }
          }
        }
      }
    ]
  }
}

Step 2. Calling a tool

Request:

{
  "jsonrpc": "2.0",
  "id": 11,
  "method": "tools/call",
  "params": {
    "name": "get_customer",
    "arguments": {
      "customerId": "123"
    }
  }
}

Response:

{
  "jsonrpc": "2.0",
  "id": 11,
  "result": {
    "content": [
      {
        "type": "text",
        "text": "Customer Ivan Petrov"
      }
    ]
  }
}

MCP and REST

An MCP server often calls a REST API internally.

The diagram looks like this:

LLM
 ↓
MCP Client
 ↓ JSON-RPC
MCP Server
 ↓ REST
CRM API

For example:

GET /api/customers/123

can be hidden inside an MCP tool:

{
  "name": "get_customer",
  "arguments": {
    "customerId": "123"
  }
}

To the model, this looks like a tool call, not a REST request.

MCP and RPC

In essence, MCP is closer to RPC than to REST.

REST:

GET /customers/123
POST /orders

RPC:

{
  "method": "getCustomer"
}

MCP:

{
  "method": "tools/call",
  "params": {
    "name": "get_customer"
  }
}

That is:

REST  -> resource-oriented model
RPC   -> function calls
MCP   -> standardized RPC for LLMs

What an MCP Server Developer Usually Implements

At a minimum:

initialize
tools/list
tools/call

Additionally:

resources/list
resources/read
prompts/list
prompts/get

Custom tools:

search_customer
create_order
send_email
get_invoice

It is these tools and their parameter schemas that make up the variable part of MCP, whereas the transport, the JSON-RPC format, the system methods (initialize, tools/list, tools/call, etc.), and the message structure are part of the protocol standard.

How MCP Servers Are Monetized, and Features of Public MCPs

The topic of MCP monetization is currently developing actively. The MCP protocol itself has no built-in payment mechanism, but it makes it possible to create commercial services to which models connect through a standard interface.

1. Subscription

The most common option.

For example:

CRM MCP Server

Plans:

  • Free — 100 requests per day
  • Pro — $20/month
  • Enterprise — unlimited

After authentication, the MCP client gets access to the tools:

{
  "name": "search_customer"
}

or

{
  "name": "create_invoice"
}

2. Pay per tool call

Similar to API monetization.

For example:

tools/call -> web_search

Cost:

$0.001 per call

or

$0.01 per 1000 documents

3. Pay for data

Especially relevant for:

  • financial data;
  • stock market quotes;
  • legal databases;
  • medical reference works;
  • scientific publications.

For example:

market_data_mcp

Tool:

{
  "name": "get_stock_price"
}

Each call uses a commercial data source.

4. Marketplace model

Catalogs of MCP servers are emerging, where the owner publishes a server and sets a price.

The model is similar to:

  • the App Store;
  • AWS Marketplace;
  • Zapier Apps.

The user connects the server and pays for access.

Which Public MCPs Already Exist

The ecosystem is changing quickly, so an up-to-date list usually requires checking the internet. Conceptually, MCP servers can be divided into several categories.

Free

Integrations with:

  • GitHub;
  • the file system;
  • SQLite;
  • PostgreSQL;
  • local documents;
  • the browser.

Often distributed as open source.

Freemium

Integrations with:

  • Notion;
  • Slack;
  • Jira;
  • Google Drive;
  • Gmail.

The MCP server may be free, but the service itself requires a subscription.

Commercial

These are usually:

  • financial analytics;
  • CRM;
  • ERP;
  • corporate knowledge bases;
  • search over closed data;
  • specialized AI agents.

What a Paid MCP Looks Like

Suppose there is a service called "Legal MCP".

The model requests the list of tools:

{
  "method": "tools/list"
}

Response:

{
  "tools": [
    {
      "name": "search_case_law"
    },
    {
      "name": "search_contracts"
    }
  ]
}

But before this, authorization is required.

For example:

Authorization: Bearer 

or OAuth 2.0.

If there is no subscription:

{
  "error": {
    "code": 403,
    "message": "Subscription required"
  }
}

What Is Standardized in Payment

Practically nothing at the moment.

MCP standardizes:

  • transport;
  • message format;
  • tool calls;
  • resources;
  • prompts.

But it does not standardize:

  • billing;
  • pricing plans;
  • invoicing;
  • limits;
  • payment systems.

Each provider implements this on its own.

A Possible Architecture for a Commercial MCP

Claude / ChatGPT
          │
          ▼
     MCP Client
          │
          ▼
     MCP Server
          │
    API Gateway
          │
 ┌────────┴─────────┐
 │                  │
Billing         Auth
 │                  │
 └────────┬─────────┘
          │
          ▼
      Business API

In this scheme, MCP is responsible only for the interaction between the model and the tools, while monetization is implemented by separate components (OAuth, an API gateway, Stripe, internal billing, etc.).

Outlook

The MCP market will likely develop in a way similar to the API market:

  • catalogs of MCP servers will appear;
  • marketplaces for paid tools will emerge;
  • standard OAuth and subscription schemes will appear;
  • models will be able to automatically discover and connect to commercial MCP services.

In effect, MCP could become for AI what REST APIs became for web applications: a universal way of connecting to data and functions, including paid services.

Conclusion

The Model Context Protocol (MCP) is an important step in the development of the artificial intelligence ecosystem. The protocol provides a standardized way to connect language models to external data and tools, which makes AI more useful, up to date, and integrated into real business processes. Thanks to MCP, organizations can take advantage of modern language models without constant retraining and without building many individual integrations, which significantly speeds up the adoption of intelligent systems in practice.

See also

  • Agent2Agent – An open protocol for communication between artificial intelligence agents.
  • AI governance – Guidelines and laws regulating AI.
  • Application programming interface (API) – A connection between computers or programs.
  • LangChain – A framework for developing applications based on language models.
  • Machine learning – A subset of artificial intelligence.
  • Software agent – A computer program that acts on behalf of a user.

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