Protocol Restructuring

Definition ∞ Protocol restructuring involves substantial modifications to the foundational rules or architecture of a blockchain system. This process entails altering the core code, consensus mechanisms, or governance frameworks that govern a digital asset network. Such changes are typically implemented to improve scalability, security, functionality, or to address critical vulnerabilities. It represents a deliberate evolution of a protocol’s underlying design and operational parameters.
Context ∞ Discussions around protocol restructuring frequently appear in news concerning major blockchain upgrades, such as Ethereum’s transition to proof-of-stake or other networks implementing sharding solutions. These events often lead to intense community debate regarding the technical implementation, potential impacts on decentralization, and the economic consequences for token holders. Monitoring these restructurings provides insight into a project’s long-term viability and its ability to adapt to changing technological requirements.