Protocol Transformation

Definition ∞ Protocol Transformation refers to the process of significantly altering or upgrading the fundamental rules and procedures that govern a blockchain or decentralized network. This change can involve modifying consensus mechanisms, updating tokenomics, or implementing new functionalities. Such transformations often require a community-wide vote or a hard fork to be enacted. The aim is to improve performance, security, or utility.
Context ∞ News in the crypto space frequently covers Protocol Transformations, especially when major blockchain networks announce significant upgrades or changes to their underlying code. These events can have substantial impacts on network participants, developers, and digital asset valuations. Community consensus and technical execution are critical factors determining the success of such transformations.