Protocol

Definition ∞ A protocol is a set of rules governing data exchange or communication between systems. In blockchain, it dictates how transactions are validated, blocks are created, and consensus is achieved. Protocols are the foundational code that underpins all blockchain networks.
Context ∞ Protocol upgrades and divergences are constant sources of news in the cryptocurrency space. Discussions often focus on the technical merits of proposed changes, their potential impact on network security and decentralization, and the governance processes by which they are enacted. Understanding a protocol’s architecture is key to grasping the operational mechanics and future trajectory of any given blockchain.