CoinDesk
Jul 29, 2025
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MCP Protocol Emerges as Key Framework for Decentralized AI Integration

The Model Context Protocol (MCP), originating as a project at Anthropic, has evolved into a key standard for coordinating intelligent interactions among datasets and resources. It is positioned to transform AI communications similarly to how HTTP impacted web interactions.

Overview of MCP

MCP was created to enhance communication between agents and document stores. It gained traction among researchers, leading to open-source implementations by mid-2024 and adoption by major platforms like OpenAI and Google DeepMind by early 2025. MCP follows a client-server model involving:

  • MCP Host: orchestrates requests
  • MCP Clients: maintain connections
  • MCP Servers: provide contextual data

MCP's Data Layer comprises three primitives—Tools, Resources, and Prompts—to facilitate agent collaboration.

MCP and Web3

The integration of MCP with Web3 can occur in two main areas:

  • Allowing blockchain datasets and decentralized protocols to function as MCP servers or clients
  • Using Web3 to support a new generation of MCP networks

Access to on-chain data and smart contracts is essential for AI agents in crypto environments. Blockchain nodes could act as MCP servers, while traditional crypto gateways serve as MCP clients.

Development of MCP Networks

MCP is expected to evolve into comprehensive networks requiring better capabilities, including:

  • Dynamic discovery of MCP endpoints
  • Search functionalities for endpoint identification
  • Ratings for MCP server reputations
  • Coordination among servers for specific outcomes
  • Output verifiability from MCP endpoints
  • Interaction traceability
  • Authentication mechanisms for servers

These features will necessitate economic incentives within the MCP network environment.

Project Namda

MIT’s Project Namda aims to develop decentralized agentic frameworks based on MCP. Launched in 2024, it focuses on creating an ecosystem where diverse agents can exchange context effectively. The project utilizes MCP’s JSON-RPC standards to promote large-scale collaboration while ensuring interoperability and security.

Implications for Decentralized AI

The partnership between Web3 and MCP presents a significant opportunity to establish a robust foundation for decentralized AI, addressing challenges faced by previous decentralized AI initiatives. This combination represents a promising avenue for future AI infrastructure.