A decentralized protocol is a set of rules or systems that operate autonomously on a blockchain without central authority. These protocols govern how data, assets, and interactions occur across decentralized applications (dApps). Examples include Uniswap (DEX), Aave (lending), and IPFS (storage). They use smart contracts to execute logic and incentivize users via tokens. Decentralized protocols ensure transparency, censorship resistance, and user control. They enable scalable ecosystems where participants interact trustlessly, forming the infrastructure for DeFi, DAOs, and other blockchain-powered innovations.
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