Decentralized Protocol
A decentralized protocol is a set of rules and guidelines that govern the operation of decentralized applications (dApps) and blockchain networks. Unlike centralized systems, decentralized protocols operate without intermediaries, ensuring transparency, security, and trustless interactions. Protocols like Ethereum’s smart contract system, IPFS, and the Interledger Protocol enable peer-to-peer transactions, secure data sharing, and decentralized financial systems. Decentralized protocols provide users greater control over their assets and data, making them key elements of Web3 and DeFi.
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