make cryptocurrency transactions - beyond just sending and receiving – possible.
They allow participants to borrow, lend, swap, and trade through code, with no central body or person managing the experience (though some protocols are more decentralized than others).
Protocols are a series of smart contracts (think of them like blocks of code) that develop into programs. These programs operate without any central body giving them permissionpermitting them to and they only execute the rules of theoutlined in the code. This is what allows them to be trustless , (e.g., instead of your bank helping you get a loan, a protocol canwill use code and issue a loan based on your wallet balance).
Aave is an example of a standard blockchain protocol is Aave, which is used to borrow and lend . Aave uses a Peer-To-Contract model, which allows users to deposit their crypto assets into the Aave protocol, get interest in return, and borrow the assets deposited into the protocol at an interest rate that is decided by an algorithm. It is decentralized and non-custodial, meaning that counterparty risk is much lower. This doesn’t mean Aave is without risk, smart contracts, like any code can be manipulated so you should always do your own research.
Protocols also set rules that govern the blockchain interface, the interaction of participating computers, the kind of data that users can share, incentives for developers that participate in the network, and much more. In short, protocols are the value of many cryptocurrencies. They bring financial use cases to the blockchain.
Another example of a blockchain protocol is Uniswap, another platform that allows for accessible and efficient trading. Uniswap allows users to trade one asset for another using pools, the protocol makes money by charging small fees and these fees get shared with the protocol owners of Uniswap.There are many other protocols out there!
Cryptocurrency networks have begun doing so themselves through mechanisms such as transparent mining and time-stamped ledgers where previous transactions cannot be changed
The best way to store cryptocurrency
If you hold a significant amount of cryptocurrency, using an offline wallet or using a technology partner such as earnJARVIS is a great idea
Learn more about crypto so you can talk to your clients like an expert
earnJARVIS gives compliant access to baskets of digital assets and integrates seamlessly into current workflows
earnJARVIS is not a bank, depository institution, custodian or fiduciary and the assets in your earnJARVIS account are not insured by any private or governmental insurance plan (including FDIC or SIPC), nor are they covered by any compensation scheme (including FSCS).
Holding, trading or using crypto assets carry significant risks, please carefully read our Risk Disclosure page. earnJARVIS does not provide any financial, legal or tax advice, nor should this website be viewed as an offer or inducement to make any financial decisions. Registered as a Money Services Business (MSB) number 31000208203446 with the US Financial Crimes Enforcement Network (FinCEN);
Jarvis Industries, Inc. is registered as a Money Services Business (MSB) number 31000208203446 with the US Financial Crimes Enforcement Network (FinCEN).