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What Are MCPs?

Last updated 2026-06-06

The Model Context Protocol (MCP) is an open standard, introduced by Anthropic, that defines how AI applications connect to external tools, data sources, and services. MCP servers expose capabilities; AI clients consume them.

Why It Matters

Before MCP, every agent integration was custom glue code. MCP standardizes the interface, so one onchain MCP server (for wallet actions, chain data, or protocol interactions) can serve any MCP-compatible AI client. For crypto, this means blockchains become plug-and-play capabilities for any agent.

How It Works

  • An MCP server wraps a service (an exchange API, a wallet, an RPC node, a data indexer) and exposes typed tools.
  • An MCP client (Claude, an IDE, a custom agent) discovers the server's tools and calls them during reasoning.
  • The protocol handles tool schemas, authentication, and transport, so capabilities compose across servers.
  • Crypto MCP servers range from read-only data access to full transaction signing, permission scope matters.

Key Components

  • MCP server (exposes tools and resources)
  • MCP client (the AI application)
  • Tool schemas (typed definitions of each capability)
  • Transport layer (stdio or HTTP)
  • Authentication and permissions

Examples

  • Base MCP: lets an assistant transfer assets and deploy contracts on Base.
  • Onchain data MCPs: give research agents structured access to contract state and events.
  • Exchange MCPs: expose market data and trading endpoints to agents.

Risks & Limitations

  • A signing-capable MCP server is a high-value attack target, scope permissions tightly.
  • Malicious or compromised MCP servers can feed agents bad data or exfiltrate context.
  • Tool descriptions can be manipulated (tool poisoning); use trusted servers.

Related Resources

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