Base Layer Protocol refers to the foundational software that underpins a blockchain network. It establishes the basic structure and functionality, enabling transactions, data storage, and user interactions. This protocol includes consensus mechanisms, which determine how transactions are validated and added to the blockchain.

It also defines the rules for how nodes communicate and maintain the overall security and integrity of the network. Common examples include Bitcoin and Ethereum, each having unique features and purposes. The effectiveness of a Base Layer Protocol can impact scalability, security, and decentralization. Scalability refers to the system’s ability to handle a growing number of transactions without compromising performance.

Innovations and upgrades to a Base Layer Protocol can enhance network capabilities, support new applications, and improve user experiences. These upgrades can take the form of hard forks or system enhancements that aim to address various limitations in the architecture. Overall, the Base Layer Protocol serves as the essential groundwork for any blockchain-based ecosystem.