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MCP in the Real World

Transports and configuration.

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A server on your laptop is one thing. A server that a whole company uses is another. There are two ways to connect, and the choice depends on where the server runs.

MCP in the Real World
From the video: MCP in the Real World
  • A server on your laptop
  • A server for a company
  • Two ways to connect

Connecting apps to servers

Most MCP apps use a small settings file like this one. A local server is started as a program, and it talks through standard input and output. A remote server is just a web address, with a token. Note how the token comes from an environment variable, so it never sits in the file. Add one entry, and the app gets all of those tools.

mcp.jsonjson
{
  "mcpServers": {
    "velo-supply": {
      "command": "python",
      "args": ["server.py"]
    },
    "github": {
      "url": "https://example.com/mcp",
      "headers": {"Authorization": "Bearer ${GITHUB_TOKEN}"}
    }
  }
}

Local or remote?

Which transport should you use? Standard IO suits local tools, such as reading your files, with no network involved. HTTP suits shared services, with proper logins, and it can scale across many users. Companies usually host remote servers behind a gateway, so that they can control who uses what.

Local (stdio)

  • Runs on your machine
  • Good for files and dev tools
  • No login needed

Remote (HTTP)

  • Runs as a service
  • Good for shared tools
  • Needs real authorisation

The 2026 update

The specification keeps moving. The revision dated July twenty twenty six was the biggest yet. It made the protocol stateless, removing the opening handshake, so that each request stands alone. That makes servers far easier to scale behind load balancers. It added a formal extensions framework, and tightened authorisation. Always check the current spec, because this area is changing quickly.

Statelessno handshake, easier to scale
Extensionsa formal framework
Stronger authmodern OAuth practice
Keep checkingit moves fast

Summary

Local for your machine, remote for the company, and always check the latest spec. MCP connects agents to tools. Next, what connects agents to other agents?

Key takeaways
  • stdio for local, HTTP for shared
  • Keep tokens out of config
  • The spec keeps evolving
Next up: Agents Talking to Agents — the A2A protocol