Transport Protocol

Understand essential crypto terminology related to Treasury Guidelines, providing clarity on regulatory frameworks and financial practices in the digital currency world.

Transport Protocol refers to the set of rules and conventions that govern the exchange of data between nodes in a blockchain network. These protocols ensure that data is transmitted accurately, efficiently, and securely.Common transport protocols used in blockchain include TCP/IP, which lays the foundation for most online communications, and UDP, which allows for faster data transfer at the expense of reliability. Each protocol plays a role in how transactions and blocks are propagated across the network.The main functions of a transport protocol involve error checking, data packet ordering, and handling data retransmission in case of loss. This is vital for maintaining the integrity of the blockchain, where every transaction must be recorded and verified by multiple participants.Choosing the right transport protocol can significantly affect the performance and security of a blockchain system, impacting everything from transaction speed to resistance against attacks. Overall, effective transport protocols are essential for keeping cryptocurrencies functioning smoothly and securely.

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