What is Protocol in Crypto? Protocol characteristics and applications

The article helps users understand more about the definition and characteristics of Protocol. At the same time, distinguish between Internet Protocol and Crypto Protocol.
In Crypto, one of the terms that you hear the most is probably Protocol. So what is Protocol? What are the characteristics? Please find out through the article below.

What is Protocol in Crypto?

Protocol is a foundational layer of code that tells how something works. Protocol is the foundation for creating any application.
A Protocol project in Crypto is a project specializing in developing an optimal protocol for a specific purpose. To be faster, applications can use these protocols to develop their applications instead of building from scratch.

What are the characteristics of Protocol?

Protocols in Crypto (cryptocurrency protocols) only allow certain applications to operate - sometimes only the cryptocurrency itself. Protocols provide security and access to a blockchain.
Protocol in Crypto allows users to manage their data. They allow individuals to create accounts - or wallets - on a protocol that can then be used to pay for services and conduct financial transactions on other websites. This helps users not be controlled by a third party in storing assets.
If we don't count Blockchain Platform (Blockchain is also a Protocol), then Protocol projects will play a role in between Blockchain Platform and DApp. Dapps that want to build on a certain Blockchain can use the services provided by Protocol projects.

Difference between Internet Protocol and Crypto Protocol

The main difference between Internet Protocol and Crypto Protocol is that Crypto Protocol usually allows one to a few applications to operate, in when Internet Protocol provides many applications to run.
This is why Crypto Protocol is also known as Fat Protocol, meaning there are very few applications running on them.
And Internet Protocol is Thin Protocol because they have thousands, thousands, even millions of applications running on them.

Application of Protocol in investment

Protocol is a Framework that Crypto projects can then take advantage of for further construction to save time. Therefore, the birth of Protocol, or a better understanding of the definition of Protocol, seems to only benefit those interested in technology, or specifically the project development team.
For regular users, or retail investors, there are not too many benefits to understanding the nature of the Protocol. Because what's really needed are real applications built on the Protocol.
In addition, a Protocol is Blockchain, so what they need to care about is the ecosystem built on it, or the money flowing in. For example, Near is also a Protocol, but everyone only knows Near as a Blockchain and system. Near's ecosystem, no one says Near is a Protocol.

summary

The birth of Blockchain has created a turning point in technology. But besides that, users can still build the above Protocols to take advantage of Blockchain's potential. And with Protocol, users can build many projects with  practical applications.