Protocol Evolution

Definition ∞ Protocol evolution describes the process by which the rules and functionalities of a blockchain network are updated and improved over time. This involves planned upgrades, hard forks, or soft forks that introduce new features, enhance security, or address existing limitations. Such changes are essential for the continued development and adaptation of decentralized systems.
Context ∞ Protocol evolution in prominent blockchains like Ethereum is currently focused on implementing major upgrades aimed at improving scalability, energy efficiency, and transaction finality. Discussions frequently revolve around the governance processes for proposing and approving these changes, as well as the potential impact on network participants and the broader ecosystem. The transition to more advanced consensus mechanisms and sharding architectures represents a significant area of ongoing protocol evolution.