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Protocol Value

Definition

Protocol value refers to the utility and economic worth derived from a blockchain protocol’s underlying technology and services. This concept encompasses the inherent benefits and demand generated by a decentralized network’s ability to facilitate secure transactions, execute smart contracts, or support decentralized applications. It is often reflected in the market capitalization of its native token, transaction fees generated, or the total value locked within its ecosystem. The value stems from its functionality, security, and the community it serves.