A Protocol in Web3 signifies a collection of guidelines that dictate how information is shared within a blockchain or between networks. For example, Ethereum and Graph Protocol, facilitate the interaction of smart contracts, data access, and decentralized applications securely and efficiently, while preserving network integrity and performance.
One example is that Ethereum serves as a foundational blockchain protocol for deploying and transacting with smart contracts. It is a way for developers to build and run DApps, where the computing is decentralized, transparent, and secure. The protocol guarantees that all the transactions and smart contract executions are processed and verified by a global network of nodes globally, maintaining network integrity and throughput.
The Graph Protocol is another with the focus strictly on indexing and querying blockchain data. It allows DApps to retrieve on-chain information in a standardized way. With subgraph creation, developers can define data queries, making data retrieval simpler for applications such as DeFi platforms, NFT Marketplaces, and DAOs. It makes performance and scalability better, and it simplifies interaction with raw blockchain data.
Blockchain Interoperability, similar to protocols in Web3, supports Blockchain Interoperability allowing different blockchain networks to communicate with each other without any issues. Polkadot and Cosmos are standards that make it possible to perform cross-chain asset transfers and data exchange across different decentralized systems.