FREEDM system is a computer-controlled distribution system with distributed generation, electronic loads and circuit breakers. The protection methods used in legacy distribution systems are too slow to protect the electronic loop. This paper determines the fault-produced short circuit current, which is a square shaped current wave with 2-3 times rated current amplitude. The fault will be identified by the detection of the change in the shape of the current waves. The fault location will be determined by a GPS-synchronized wireless digital pilot protection system. The major components of the protection system are identified, and system operation is verified by computer simulation.