A Hybrid Protocol combines elements from both centralized and decentralized systems to achieve specific operational goals. These protocols often aim to balance the efficiency and control of centralized components with the transparency and security of decentralized ledger technology. They represent an approach to leveraging the strengths of different architectures. Such designs seek to mitigate the limitations inherent in purely centralized or decentralized models.
Context
Hybrid protocols are frequently discussed in crypto news as a potential solution for enterprises seeking to integrate blockchain technology while maintaining regulatory compliance and operational control. Examples include permissioned blockchains with public elements or centralized exchanges offering decentralized features. The ongoing development of hybrid protocols reflects an effort to bridge the gap between traditional business requirements and the innovations offered by distributed ledger systems.
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