What is a crypto protocol and how does it work?

Cryptocurrency protocols allow users to manage their data. They allow individuals to create an account – or a wallet – on a protocol that can then be used to pay for services and make financial transactions on other websites. The security and unique identity of these applications is, at its foundational level, in the protocol.

What is a bitcoin transaction protocol?

Bitcoin: Bitcoin’s transaction protocol is the landmark blockchain protocol that revolutionized digital payments. A few of its protocols laid the foundation for cryptocurrency transactions: peer-to-peer transactions, hashes, digital signatures, and so on.

Why are cryptocurrency protocols called Fat?

This is why cryptocurrency protocols are called fat: they have very few applications running on them. Internet protocols are thin: they have thousands and thousands – even millions – of applications running on them. With any cryptocurrency, the protocol is the value.

What is a protocol in Computer Science?

As all of us already know, a protocol, in computer science, is a set of rules or procedures that govern the transfer of data between two or more electronic devices. This protocol helps in establishing how, in order for computers to exchange information, the information must be structured and how each party will send and receive it.