Core Protocol in cryptocurrency refers to the foundational rules and guidelines that govern the network. It is essentially a set of instructions that all nodes in the network must follow to ensure consensus and secure transactions. The Core Protocol establishes how transactions are verified, added to the public ledger, and how new coins are created and distributed.
These rules are implemented through complex cryptographic algorithms and are designed to prevent fraud, double spending, and other malicious activities. Any changes or updates to the Core Protocol typically require consensus from a majority of participants in the network. This ensures that the network remains secure and decentralized.
The Core Protocol in cryptocurrency is essential for maintaining the integrity and reliability of the network. It serves as the backbone of the system, providing a framework for trustless transactions and enabling users to transfer value without the need for intermediaries. By following the Core Protocol, users can have confidence in the security and validity of their transactions.
