A decentralized protocol is a set of rules and standards governing the operation of decentralized networks, typically based on blockchain technology. These protocols enable peer-to-peer transactions and interactions without requiring a central authority or intermediary. Examples include protocols for decentralized finance (DeFi), decentralized exchanges (DEXs), and data storage. By utilizing decentralized protocols, users retain control over their data, assets, and transactions, fostering transparency, security, and trust in the system. These protocols promote greater user autonomy and reduce risks associated with centralization.
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