A Protocol is a set of guidelines and rules and that govern how a system should operate.

In the context of Crypto and Decentralized Finance (DeFi), a protocol is a set of rules that defines how transactions are processed, validated, and recorded on the blockchain.

Protocols are an essential part of the infrastructure of decentralized finance, as they provide the underlying rules and mechanisms that allow for the creation of decentralized applications (dApps) and the use of smart contracts.

These protocols help to ensure that transactions are processed and recorded accurately and securely, and they are often designed to be open and transparent, allowing anyone to participate and contribute to the development of the network.

There are many different protocols in the world of DeFi, each with its own unique set of rules and features.

Some of the most well-known protocols include Ethereum, which is a popular platform for building decentralized applications.

« Back to Glossary Index