Application-Specific Protocol

An Application-Specific Protocol in cryptocurrency refers to a set of rules and standards that are specifically designed to govern the interactions and operations within a particular blockchain application or platform.

These protocols are tailored to meet the unique requirements and functionalities of the specific application, ensuring efficient and secure transactions.

By defining how data is structured, transmitted, and validated within the system, application-specific protocols help to maintain consistency and reliability in the network.

Examples of application-specific protocols in cryptocurrency include smart contract protocols like Ethereum’s ERC-20 standard, which governs the creation and management of token contracts on the Ethereum blockchain.

Overall, these protocols play a crucial role in ensuring the smooth operation and interoperability of various decentralized applications within the cryptocurrency space.