Web3 Protocols

Definition ∞ Web3 Protocols are the underlying communication rules and standards that govern decentralized applications and networks. They define how data is transmitted, how consensus is achieved, and how transactions are processed in a distributed environment. These protocols are the building blocks of the decentralized internet, enabling services like decentralized finance (DeFi) and non-fungible tokens (NFTs).
Context ∞ The landscape of Web3 Protocols is characterized by rapid innovation and competition, with new standards emerging for areas such as scalability, interoperability, and data storage. Current discussions often revolve around the performance, security, and governance models of various Layer 1 and Layer 2 protocols. Future developments are expected to focus on creating more seamless user experiences and achieving greater network effects through protocol standardization and cross-chain compatibility.