What Is MCP — and Why Is Everyone Talking About It?

Jun 21, 2025

2 mins

Matt (Co-Founder and CEO)

TL;DR:

MCP (Machine Client Protocol) is an emerging standard for managing how autonomous agents access APIs — with identity, scoped permissions, and full auditability.

It’s what OAuth did for users — but for AI agents, bots, scripts, and automated workflows.

If your app is being accessed by anything non-human, MCP is the missing piece.

🧨 Why Is Everyone Talking About MCP?

Because the world is rapidly shifting from user-based access to agent-based access.

Think about it:

  • Agents built on LLMs (like GPT, Claude)

  • No-code/low-code automation tools

  • Integration bots

  • Smart assistants

  • AI copilots and orchestrators

They all need access to SaaS platforms — but traditional authentication models weren’t designed for this.

MCP is exploding in relevance because it provides a standard, secure way to give agents API access — without exposing your platform to uncontrolled service accounts or token sprawl.

🤖 So, What Is MCP?

MCP = Machine Client Protocol

It’s a protocol that defines how a non-human actor (aka an “agent”) can securely access APIs.

Core principles:

  • Agent Identity: Verifiable identity for machines, not just humans

  • Delegated Authority: Humans (or systems) can delegate limited access to agents

  • Scoped Tokens: Access is tightly scoped, time-bound, and revocable

  • Auditability: Every action can be traced back to a specific agent

It’s not an auth provider.
It’s not a model.
It’s the standard for how machines prove who they are, what they’re allowed to do, and how you control them.

🔒 Why OAuth Isn’t Enough

OAuth was designed for human-centric use cases:

  • “Let me sign in with Google”

  • “Let a user give Dropbox access to Google Drive”

But it breaks down when:

  • The client isn’t a user… it’s a bot

  • The bot is multi-tenant (acting on behalf of many customers)

  • You need to revoke or audit access per agent

  • You need delegation that’s traceable and safe

Most devs today use a mess of:

  • Over-permissioned service accounts

  • Static API keys

  • Homegrown token logic

  • Hacky impersonation flows

MCP replaces that with clean, purpose-built agent access infrastructure.

💥 Why It’s a Big Deal (Now)

The agent wave isn’t coming — it’s already here.

  • LLM agents are integrating into everything

  • Customers want to bring their own bots

  • SaaS vendors are launching AI co-pilots

  • Platforms are becoming programmable via automation

And yet… the infrastructure for machine-to-machine access hasn’t evolved since the early 2010s.

MCP changes that. It’s like the OAuth moment — but for agents.

🔁 Real-World Example

Let’s say your customer wants to connect their own GPT-based assistant to your platform.

Here’s the problem:

  • Who is this bot?

  • What can it access?

  • For how long?

  • On whose behalf?

  • Can I revoke or limit it?

  • Can I audit what it did?

Without MCP: you’re guessing, hoping, or hardcoding.

With MCP: you’ve got verifiable identity, scoped delegation, and full observability.

🧱 MCP Isn’t a Feature — It’s a Layer

MCP isn’t just auth.
It’s the access layer for agents.

✅ Works across LLM agents, SaaS integrations, and automation
✅ Complements your existing APIs
✅ Plays well with OAuth (or replaces parts of it)
✅ Provides the missing control layer for multi-tenant agent access

🛠️ What Does MCP Look Like in Practice?

An agent using MCP will:

  1. Request access with a machine identity

  2. Receive a scoped, signed token

  3. Use that token to access your platform’s APIs

  4. Be logged, monitored, and revocable in real time

This is what secure agent infrastructure looks like in 2025 and beyond.

⚡ Who’s Building MCP Infrastructure?

Right now, this is a greenfield category.

At Prefactor, we’re building the first drop-in auth layer that brings MCP to any SaaS platform:

  • Scoped tokens

  • Delegated access

  • Agent identity management

  • Audit and revocation

We believe MCP is the future of access — and we’re building the infrastructure to make it real today.

✅ Summary: Why You Should Care

If you’re building for AI, automation, or agents —
MCP isn’t optional. It’s foundational.

Sign up for a chat with the Founders today to find out more.