Protocol-Level Integration
Protocol-level integration is the integration of different protocols or rules into a single system. It is the process by which two or more distinct protocols are combined in order to achieve a common goal. This can be done at various layers of abstraction, depending on the requirements and complexity of the integrated systems. Different types of protocol-level integration include network layer (e.g., IP), transport layer (e.g., TCP/IP), application layer (e.g., HTTP) and encryption layers (e.g., SSL).
In cryptocurrency, protocol-level integration plays an important role in enabling transactions across networks that use different cryptographic algorithms and communication protocols for exchange of information between peers on these networks. By integrating multiple protocols into one cohesive system, users are able to transact with each other faster, more securely and with less risk than if they had to rely on manual methods such as exchanging keys over email or instant messaging services like Skype or WhatsApp for authentication purposes when initiating transactions across disparate networks that have incompatible communication standards.
Protocols such as Bitcoin’s Lightning Network make it possible for exchanges among participants who do not share any type of direct connection but need to communicate with each other via decentralized nodes in order to perform secure peer-to-peer transactions while preserving privacy since no personal data needs shared during this process due its reliance upon public key cryptography rather than traditional username/password authentication mechanisms used by centralized systems like banks and credit card companies .
Protocol level integrations also help facilitate offchain scaling solutions which allow cryptocurrencies operating on blockchains that are limited by throughput capacity issues caused by their underlying consensus mechanism execute high volume transaction without having them take place directly on chain thus increasing speed without sacrificing security through trustless smart contracts enabled via blockchain technology .
