Often mentioned as a component to a blockchain network, Protocols are frequently mixed up with separate blockchain components, especially dApps. These both serve a blockchain network in different ways, yet may seem quite similar from a quick glance. Let’s compare these basic definitions of both:
What is a dApp? A dApp is a decentralized application that operates autonomously (usually) through smart contracts that run on some form of a distributed ledger such as blockchain or decentralized computing.
What is a Protocol? A Protocol is a standard of rules that establish and govern the structure of a blockchain or seperate L2 chain.
To elaborate further, protocols are capable of more than just this. Protocols can define any operational means on a blockchain – such as how data is transferred between computing systems. Blockchain protocols are crucial as they impact network performance, limitations, and applicability. They are the interface of the blockchain itself.
How Protocols are brought to a network
Protocols can be created, but this task is extremely difficult. It would require the conceptualization of a completely new idea with sound fundamentals and detailed architecture before the new protocol could even begin testing. Therefore, most projects opt for a different approach.
Step 1: Choose an existing consensus mechanism as the basis for the blockchain network. As the consensus mechanism is
responsible for the network environment, the type of consensus mechanism must be appropriately selected in order to support the network values and focus points, such as security, decentralization, scalability, and consistency.
Step 2: The Protocol then requires coding to build out additional framework so the blockchain can initiate activity. This framework must include the communication between nodes in order to create a distributed, decentralized network.
Step 3: Assigning an access point to the network through cryptography, hashing, signing, and addresses. In this way users can access the network with a wallet, wallet bridge, address, or an account.
Step 4: Provide network enhancement tools, perhaps by establishing / auditing Smart Contracts or determining dApp requirements.
Leading Protocols
These are the 3 leading open-source protocols in blockchain, accompanied by their standout features:
Corda
Serves as a host primarily for financial and banking services.
Agile and flexible framework to meet any business requirements.
Provides a variety of blockchain solutions and standards for customization purposes.
Highly scalable and can maintain up to 600 transactions per second.
100% interoperable.
Hyperledger
Built to help enterprises efficiently address complicated and critical developments.
Leading enhanced smart contract governance.
Already proven as it supports mainstream enterprises such as IBM, Samsung, Fujitsu, JP Morgan and American Express.
Exclusive access.
Focuses on intellectual property.
Enterprise Ethereum
Predominantly, this Ethereum based protocol facilitates the creation and deployment process of dApps.
Peer-to-peer network-based system.
Rapid asset transactions and fluency.
High compatibility and wide scalability.
Efficient data coordination.
Ideal for large scale applications preparing for Ethereum 2.0.
DeFi focused.
Leading protocol for gaming tools and development.
