Application layer protocols are sets of rules that enable communication between different software applications within a network. In cryptocurrency, they play a critical role in facilitating transactions, data exchange, and interaction between various decentralized applications (dApps) and protocols.These protocols define how messages are formatted, transmitted, and received. For instance, within a blockchain network, they help manage how users can send and receive tokens, query transaction history, and interact with smart contracts.Examples of application layer protocols include Bitcoin’s JSON-RPC for transactions and Ethereum’s Web3, which allows users to interact with smart contracts and retrieve blockchain data. By standardizing communication, these protocols ensure that different applications can work together seamlessly, ultimately enhancing the user experience and expanding the ecosystem’s functionality.