Core Protocol

Definition ∞ A core protocol represents the fundamental set of rules and algorithms that govern a blockchain network’s operation. This foundational layer defines how transactions are validated, blocks are created, and consensus is achieved. It forms the essential framework upon which all other applications and layers are built. Any alteration to the core protocol requires a significant network-wide agreement.
Context ∞ News about cryptocurrency often references core protocols when discussing network upgrades, security audits, or governance proposals. Changes to a core protocol can significantly impact a digital asset’s functionality, scalability, and security. Understanding the core protocol provides context for evaluating a blockchain’s stability and its potential for future development. Reports highlight community discussions and developer efforts related to these foundational system rules.