Protocol

A standard set of rules or procedures that govern a system. In computer networking, this might be a common program used by multiple computers on the same network that allows all devices to communicate with each other. Protocols dictate what data may be transmitted, what commands are used to handle the transmission of information, and how data transfers are confirmed between interconnected but independent devices. In blockchains, a prime example would be the consensus protocol, a dynamic way of reaching agreement among a group of network participants. Each participant (node) must abide by the protocol to create a single, shared state of the blockchain. In crypto, consensus protocols enable trustless, peer-to-peer exchanges, as opposed to traditional protocols requiring a single centralized record-keeper.