Crypto Protocol

A crypto protocol is a set of guidelines for participants in a decentralized network that employs encryption to keep its activities secure. Most cryptographic protocols are transparent and open-source, allowing anybody to go through and validate the underlying code. They guarantee that no one organization or authority controls the network because they are decentralized in nature. Participants instead support its operations by ensuring the network's consensus and validating transactions. The existence of protocols is not limited to cryptocurrencies; it is practically universal. Consider the Internet, where protocols make it possible for websites to run. These two internet protocols are the most widely used. These make up the underlying code that enables the operation of all Internet apps. One of these internet protocols powers many websites, including Google, Facebook, Twitter, and others. Cryptographic protocols are intended to be trustless, allowing parties to transact without the requirement for a reliable middleman. The use of cryptography to protect transactions and guarantee their integrity makes this possible. Decentralized finance (DeFi), an emerging industry that seeks to develop new financial systems and products that function on decentralized networks to compete with traditional finance, relies heavily on cryptographic protocols.