A decentralized protocol is a set of rules or standards that operate autonomously on a blockchain without centralized control. These protocols power applications like DeFi platforms, NFT marketplaces, and DAOs. Governed by smart contracts, they ensure transparent, secure, and trustless interactions among participants. Examples include Uniswap (DEX), Aave (lending), and Compound (yield farming). Decentralized protocols promote open innovation and financial inclusion by eliminating gatekeepers and empowering users to directly interact, trade, and transact in permissionless digital ecosystems.