NEAR Protocol is a decentralized application platform that allows developers and end-users to be involved in network management and gaining rewards.
What is the NEAR Protocol?
- NEAR Protocol is an open-source platform that runs on a Proof-of-Stake algorithm.
- NEAR uses a sharding approach called Nightshade, which provides high scalability and low transaction fees.
- Doomslug is another mechanism that allows node validators to create blocks on the NEAR network. Users will need to stake NEAR to become a validator on the network.
- NEAR Protocol will be beneficial to developers and their end-users for hosting serverless applications and smart contracts with features like human-readable account names as opposed to cryptographic wallet addresses, dApps and smart contracts interaction without requiring a wallet.
- Projects building on NEAR Network including Mintbase (a non-fungible token minting platform) and Flux (a protocol that developers can create markets based on assets, commodities, or virtual events)
- NEAR holders are able to have the governance votes as a part of network management and community.
|Token Name||NEAR Protocol|
|Total Token Supply||1,000,000,000|
|Current Circulating Supply||See Coinmarketcap|
|Market Capitalisation||See Coinmarketcap|
|Token Creation Date||April 22, 2020|
|Can it be mined?||Yes|
Who is behind the NEAR Protocol?
NEAR Protocol was a machine learning platform developed by Alex Skidanov and Illia Polosukhin based in San Francisco. In 2018, NEAR Protocol project was started and was able to raise $50 million in the first four months of its beginning.
What is the purpose of the NEAR Protocol?
As a native utility token of NEAR decentralized network, NEAR Protocol can be used as:
- Transaction and storing data fees
- Validation node generators when users are staking NEARs.
- A governance vote to help to manage network resources and decision-making on technical necessities.
Moreover, developers who create smart contracts will receive a portion of the transaction fees, and the rest of each transaction fee is burned in order to increase the NEAR token scarcity. NEAR protocol is able to support wrapped tokens from other chains.
NEAR Protocol aims to build a decentralized network infrastructure with its scalability, which is designed to provide the performance and user experience to improve the protocol. As a result, NEAR transaction fee is quite low compared to other staking tokens.
- NEAR has built entirely new blockchains with different architecture as other blockchains have particularly faced scalability issues, due to the high demand of usages.
- Sharding implementation on NEAR Protocol will create a solution to the scalability problem by delegating each shard the computational load relevant to the particular shard, so all nodes do not need to run all of the code simultaneously.
- NEAR uses parallel computing for each shard on a Proof-of-Stake system which can increase scalability and the network’s capacity by generating validator nodes from staking tokens.
- The third-party observers, “Hidden Validators” and “Fishermen,” are other nodes NEAR uses to scan and detect any malicious events occurring within the network.
- NEAR holders have full control over the blockchain, and governance votes really matter for the sustainability of the community and efficient implementation of the protocol.
- Staking NEAR will receive block rewards for validators and delegators, which come from a 5% annual inflation rate.
- Every epoch (12 hours), validators will be chosen by the auction system; the more the users stake, the more influence in the consensus process.
- The NEAR platform is community-based with a combination of serverless computing and storage distributing features that create secure and transferrable decentralized data layers.
- Resources provided to the NEAR protocol treasury are distributed by the NEAR foundation, which provides the protocol maintenance, ecosystem funding, and guiding the protocol governance.
- NEAR’s validators and delegators are able to unstake at any time, whereas the amount of tokens being staked will affect the price in each shard.
- The ecosystem and resources management depends on a small group of people. Consequently, wealth investors are probably not interested in this protocol, and price speculation might be unpredictable for the majority of short traders.
News and Updates:
- Mintbase raises a $1M seed round to bring NFTs to NEAR Protocol.
- The Graph has announced that it will offer support for four additional Layer 1 blockchains: Polkadot, NEAR, Solana and Celo.
- Flux Protocol raises $10.3M seed round to build DeFi infrastructure on NEAR.
- NEAR Treasury DAO has been proposed by Illia Polosukhin, NEAR’s Co-Founder, to enhance the future growth of the NEAR Ecosystem.
- Collaboration with various platforms;
- MOVE Capital, NEAR’s first venture DAO, is committed to accelerating the development of the NEAR Ecosystem.
- NEAR Protocol has partnered with the Universal Hip Hop Museum (UHHM) and Ed Young, co-founder of The Source magazine, to release a collection of non-fungible tokens featuring hip-hop artists from the 1970s to now.
- NEAR Protocol is working with Web3Games and Chinese artist Heshan Huang to sell his non-fungible token (NFT) at Taobao Maker Festival sponsored by Alibaba.
Community & Whitepaper Links:
Official Website: https://near.org/
White Paper: https://near.org/papers/the-official-near-white-paper/
*As cryptocurrency and digital tokens involve high risks, investors may lose all their investment money and should study information carefully, making investments according to their own risk profile.
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