Industry

MCP Protocol Explained: Transport, Tools, and Resources

A practical breakdown of how the Model Context Protocol works under the hood — transports, tool schemas, and resource discovery.

June 4, 2026 6 min read MCP360 Team

TL;DR

MCP connects AI clients to servers over stdio or HTTP, exposing typed tools and readable resources. The client discovers capabilities at connect time and invokes tools with structured JSON arguments.

The Model Context Protocol is more than a buzzword — it is a wire format and capability contract between AI clients and external systems. Understanding the three layers (transport, tools, resources) helps you evaluate hosted providers like MCP360 versus building your own integration stack.

Transport Layer

MCP supports two primary transports:

  • **stdio** — the AI client spawns a local process and communicates over stdin/stdout. Claude Desktop uses this pattern with `npx mcp-remote` for remote servers.
  • **HTTP/SSE** — remote servers expose an endpoint the client connects to over the network. MCP360 hosts production endpoints like `https://meta-ads.mcp.mcp360.net/`.
  • Both transports carry the same JSON-RPC-style messages. Switching transports does not change your tool definitions.

    Tools: Structured Actions

    Tools are the write and read operations your AI can invoke. Each tool declares:

  • A machine-readable name (e.g. `list_campaigns`)
  • A JSON Schema for parameters
  • A human description the model uses for tool selection
  • When a user asks "pause my worst-performing Meta campaign," the model selects update_campaign_status, fills in the campaign ID and desired state, and the MCP server executes against the real API.

    Resources: Readable Context

    Resources expose read-only context — files, database rows, configuration snapshots — that the model can fetch without side effects. Tools perform actions; resources provide grounding data.

    Discovery at Connect Time

    On connection, the client calls tools/list and resources/list to learn what the server offers. This is why one MCP360 API key unlocks dozens of ad management tools without per-prompt configuration.

    Why Businesses Use Hosted MCP

    Building OAuth flows, token refresh, rate limiting, and API versioning for Meta, Google, and Shopify individually takes months. Ad Platform MCP and other MCP360 services ship maintained tool catalogs so your team configures an endpoint, not an integration project.

    Start with What is MCP? for the business case, then connect your first client via Claude Desktop setup.

    About the author

    MCP360 TeamTechnical writers covering MCP standards, hosting, and production deployment patterns.

    Ready to try MCP360?

    Connect your business tools to Claude, ChatGPT, or any AI agent. Free plan available.

    Read the glossary

    Related in this cluster