It has been over a decade since blockchain technology came into existence. However, it is still considered a relatively new technology and a mystery to the masses. Today, the world is divided into two halves; the first has all the necessary information about blockchain technology and its emerging trends, and the other comprises the population with absolutely no clue about this technology. You must have heard that one of the first cryptocurrencies, Bitcoin, made its way in a blockchain white paper written by Satoshi Nakamoto. The basic set of computational rules established blockchain and this set of rules is what we call crypto protocol.

Crypto protocol is one such term related to blockchain technology but still something that only some are well versed in. This article is an attempt to help you understand what Crypto protocols are. One thing you must know about protocols is that they aren’t exclusive to just blockchain technology. They control the transfer of data between computers and are essential to the operation of the internet. For instance, various sets of protocols are used in email. You must have encountered HTTP while searching anything on the internet that stands for hypertext transfer protocol. The first ever protocol was for Bitcoin, after which hundreds of protocols have emerged in the last decade. Let us understand why protocols are crucial for cryptocurrencies. 

Protocols enable cryptocurrencies, by utilising blockchain, to be decentralised or distributed over a network of computers without any central authority. Have a look at some of the many functions that are integral to protocols: 

- One of the primary aims of a protocol is to send the data to the correct address and analyse the flow of data 

- It also helps to sort data in a specific time frame 

- A protocol also helps to determine the most appropriate path for data transmission between the sender and the receiver 

- A protocol is also responsible for limiting the data flow and ensuring flow control at the receiver’s end 

- Error detection, storage of data, and sequencing are functions of a protocol

In addition, there are several other functions, such as connection control, transmission services, and encapsulation, that a protocol performs. In simple words, a blockchain protocol does the following effortlessly: 

- Processes transactions 

- Creates an interface for application programming 

- It serves as a framework that governs and oversees every participating node and their interaction with each other. 

A lot of people tend to use blockchain and protocol interchangeably, but technically, both these terms are highly distinct from one another. For a blockchain to operate appropriately, it needs a foundation, which is what a protocol is. It is the foundational layer of code on which the framework of all the activity rests. 

One protocol can support multiple blockchains. Teams developing the protocols often take divergent courses in future, but they can easily create a distinct blockchain network with the same foundational protocol. That is precisely how a single protocol manages to support multiple networks. 

If you are willing to invest in a crypto token, you must first understand the strength of its underlying protocol. Analysing the blockchain white paper can give you a thorough understanding of the crypto protocol and whether the investment will be fruitful.