The future of digital relay technology promises significant advancements in grid reliability and efficiency, driven by AI integration and enhanced communication protocols. Smart digital relays will enable faster fault detection and adaptive protection schemes, reducing. able sources such as wind and solar. These clean energy sources, connected through inverters and flexible transmission systems, are transforming traditional grids based on synchronous generators into more flexibl cant challenges to system stability. This article explores the. Relay protection technology plays a vital role in fault detection, isolation, and recovery, evolving with intelligent algorithms, digital equipment, and automated coordination to enhance grid reliability. This paper explores the development of relay protection technology in smart grids, analyzing. This paper presents a chip-based relay protection technology based on system-on-chip (SoC), which is described from four aspects, namely, the architectural design of the relay protection SoC, software and hardware cooperative relay protection based on the SoC IP core, experimental verification, and. This transformation not only enhances the performance of relay protection systems but also provides valuable real-time data and analytics that can be utilized to optimize the overall network operation. Key solutions are proposed to address the.