What Is Near Protocol (NEAR)?

NEAR Protocol is a layer-one blockchain with smart contract functionality. It facilitates the development and creation of decentralized applications (DApps), focusing on developer and user-friendliness. Its native token, NEAR, is used for staking and paying transactions and storage fees on this platform. Near Protocol launched its mainnet in 2020 based on a delegated proof-of-stake (PoS) consensus mechanism. This blockchain uses sharding technology for scalability.

Near Protocol was built by the NeaCollective to be a community-run cloud computing platform to store DApps. It is often regarded as a competitor to Ethereum. However, Near Protocol aims to eliminate some of the limitations of other similar platforms, such as low transaction speeds and poor interoperability. In contrast to other smart contract platforms, Near Protocol uses human-readable account names instead of cryptographic wallet addresses.

How Does the Near Blockchain Work?

Near Protocol is a layer-one blockchain, the foundation upon which other applications are built and deployed. Ethereum, Cardano, and TRON are also layer-one blockchains. To achieve scalability, Near Protocol uses the so-called Nightshade sharding technology. Sharding allows each validator node in the blockchain to only store a small subset of the platform’s data. This way, validators process transactions in parallel across multiple sharded chains, enabling more transactions per second (TPS).

Unlike the sharding system used by other blockchains, Nightshade maintains a single chain of data while allowing each shard to produce a fraction of the next block, known as a “chunk.” Nightshade significantly improves blockchain security, as validator nodes are only responsible for maintaining smaller parts of the chain. This way, the number of potential points of failure is reduced.

Also, Near Protocol uses the Doomslug consensus mechanism. Nodes interested in validating transactions must stake their NEAR tokens to participate. Token holders can also delegate their stake to their chosen validator if they prefer to do so. Doomslug allows for validator nodes to take turns generating blocks on the network. Validators are selected via an auction system, which happens every epoch, typically at a 12-hour interval. A new block on NEAR is generated approximately every second.

Near Protocol is also interoperable with Ethereum using the Rainbow Bridge application. This way, users can easily transfer ERC-20 tokens back and forth between Ethereum and Near Protocol.  Developers can build DApps on Near Protocol as they do on Ethereum. Near Protocol features a cloud infrastructure, combining hundreds of globally-located servers and decentralized data storage.

What Are the Projects Based on Near?

As of January 19, 2023, 750 active projects and 125 decentralized autonomous organizations (DAOs) are running on the Near Protocol platform. Most projects involve decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming. Among the most notable projects based on Near Protocol are:

• Aurora. An Ethereum virtual machine (EVM) built on the Near Protocol, delivering a turn-key solution for developers to operate their apps on an Ethereum-compatible, high-throughput, scalable and safe platform with low transaction costs.
• Octopus Network. A Near-based cross-chain network, allowing developers to launch and run application-specific blockchains known as appchains.
• Band Protocol. A decentralized, cross-chain data oracle platform that aggregates real-world data onto smart contracts.
• Paras. The most popular NFT marketplace within the Near ecosystem.
• NearPay. A payments platform on the Near network that works to bridge the gap between crypto and fiat currencies.

What Is the NEAR Token?

Near Protocol’s native token is NEAR, used for staking by validator nodes and delegators on the network. Also, users on this platform must pay transactions and storage fees with NEAR tokens. As of January 19, 2022, NEAR traded at around $2. According to CoinMarketCap, NEAR is the 30th most valuable cryptocurrency by market capitalization. Some prominent data of this token are summarized below.

The NEAR token began trading on October 14, 2020, at $1.69. This digital asset has had positive price performance for most of its existence. In the second half of 2021, the NEAR token began an upward trend, culminating in its all-time high of $20.42 on January 16, 2022. However, the crypto market hit the NEAR price, sending it to as low as $1.25 on December 31, 2022. As of January 19, 2023, the NEAR token traded at around $2.

Which Wallets Do Support NEAR?

Near Protocol has its own wallet to store and stake NEAR tokens and other compatible assets securely. However, other wallets support NEAR, including desktop wallets (MyNearWallet, Exodus.), web wallets (MetaMask, Sender, Nightly), and mobile wallets (Trust Wallet, HERE wallet).

What Can You Do with NEAR?

You can stake NEAR tokens to become a validator node on the Near Protocol network to earn rewards. If you prefer, you can delegate your stake to a validator of your choice. As a user of Near Protocol, you can pay transactions and storage fees with NEAR tokens. The NEAR token has had acceptable price performance for most of its history; it might be a good investment vehicle.

Conclusion

Near Protocol is a technically sound project with a promising future in the blockchain industry. The platform’s native token, NEAR, exhibited good price performance before the crypto winter of 2022. Although the current NEAR price is slightly above its launch value, this digital asset has enormous potential. If you are interested in investing in NEAR, you can purchase it on LetsExchange.io without mandatory registration.

FAQ

Is NEAR crypto a good investment?

It might be. Although the NEAR price significantly dropped during 2022, this asset could recover in the coming years. An optimistic price prediction indicates the average NEAR price in 2023 will be $5. Accordingly, the NEAR price will go above $100 in 2032. However, it would be best if you researched this asset beyond mere price predictions before investing in it.

Is Near Protocol legit?

Yes, it is.

How fast is the Near Protocol?

The unique Doomslug consensus mechanism allows Near Protocol to scale to 100,000 TPS easily. Completing a transaction takes 2.4 seconds on this network.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.

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