A Base Layer Protocol is the underlying foundation for a cryptocurrency network. It serves as the framework for executing transactions, securing the network, and maintaining the overall functionality of the system. The base layer protocol defines the rules and protocols that govern how data is stored, processed, and verified on the blockchain. It includes features such as consensus mechanisms, encryption methods, and validation processes.
One of the key characteristics of a base layer protocol is its decentralization, meaning that no single entity has control over the network. This is achieved through mechanisms such as proof of work or proof of stake, which enable participants in the network to validate transactions and secure the network through their computational resources or stake in the system.
In summary, the base layer protocol is the fundamental infrastructure that enables a cryptocurrency network to function. It establishes the rules and processes that govern how transactions are processed, verified, and recorded on the blockchain, ensuring the security and integrity of the system.
