A Protocol Stack is a hierarchical set of communication protocols that function together to enable network communication. Each layer in the stack performs a specific function, building upon the services provided by the layer below it. This structured approach ensures orderly data transmission and reception. It is fundamental to how computer networks and blockchain systems operate.
Context
In blockchain technology, the protocol stack refers to the layers of rules and standards that define how a decentralized network operates. A key discussion involves optimizing each layer for scalability, security, and interoperability. Future developments are focused on layer-2 solutions and cross-chain protocols to enhance the overall performance and utility of blockchain ecosystems.
The transition to a Financial Operating System on Sui establishes a KYC/KYB-gated bridge to onboard traditional finance liquidity while mitigating decentralized protocol risk.
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