> For the complete documentation index, see [llms.txt](https://canopy-network.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://canopy-network.gitbook.io/docs/canopy-network/understand-the-protocol.md).

# Understand the Protocol

Delve into this section to gain a thorough understanding of how Canopy operates, exploring its functionalities and mechanisms in detail.

Canopy allows a Nested Chain to use a validator set without building one from scratch.

The Canopy Network can serve as a **Security Root** for a Nested Chain. A Security Root is the chain where validators are registered and where their collateral is bonded. Validators can opt in to support a particular Nested Chain by forming a committee and restaking their collateral to perform consensus on its behalf.

A Nested Chain remains its own network. It runs its own software, defines its own application logic, and maintains its own execution environment.

### The protocol at a glance

```mermaid
flowchart TB
    SR["Canopy Network<br/>Security Root"]
    C["Committee<br/>Validators opt in and restake collateral"]
    NC["Nested Chain<br/>Its own software, rules, and execution environment"]
    I["Independent operation<br/>A Nested Chain can select itself as its Security Root"]

    SR --> C
    C --> NC
    NC --> I
```

### Security Roots and committees

A committee is a subset of validators that has opted in to support a Nested Chain. The validators in that committee run a full instance of the Nested Chain software and use their collateral on the Security Root to perform Byzantine Fault Tolerant consensus.

The Security Root provides the source of the Nested Chain’s validator set. The Nested Chain uses that validator set while continuing to operate independently from the Security Root.

### Nested Chains

A Nested Chain is an application-specific blockchain. It has its own software, consensus rules, block timing, and execution environment.

The chain can use the Canopy Template as a starting point, then customize its application logic for a specific use case. Validators supporting the chain connect over dedicated peer-to-peer channels and execute consensus for that chain using the collateral designated through its Security Root.

### A path to independence

A Nested Chain can use a Security Root while it develops its community, economic security, and validator participation.

When the chain is ready, it can change its Security Root through governance. A Nested Chain can select itself as its own Security Root and operate independently. If it uses the Canopy Template, it can also support Nested Chains of its own.

### Continue learning

Read [Protocol Architecture](https://canopy-network.gitbook.io/docs/canopy-network/how-does-canopy-work/utility) for a closer look at the relationship between Security Roots, committees, and Nested Chains.

Read [Consensus](https://canopy-network.gitbook.io/docs/canopy-network/how-does-canopy-work/consensus) to learn how Canopy reaches agreement on blocks.

Read [Peer-to-Peer](https://canopy-network.gitbook.io/docs/canopy-network/how-does-canopy-work/p2p), [State Machine](https://canopy-network.gitbook.io/docs/canopy-network/how-does-canopy-work/state-machine), and [Storage](https://canopy-network.gitbook.io/docs/canopy-network/how-does-canopy-work/storage) for implementation details.