Near Protocol: The Layer-1 Dedicates Blockchain With Sharding System
20 April 2022
In contrast to earlier systems like Bitcoin or Ethereum, NEAR protocol is a newcomer that seeks to overcome the limits of older systems such as these with a community-governed sharded blockchain platform that has interoperability and scalability at its heart.
It is a layer-one blockchain that tries to tackle the difficulties of sluggish transaction rates, restricted throughput, and poor interoperability. Near Protocol (NEAR) was developed to address these issues. The Near Protocol (NEAR) is a decentralized application platform that has the potential to revolutionize systems, generate apps, and transform how users interact with the internet in general.
bePAY will direct you to in-depth information on What is the near protocol? including its definition, application scenarios, and reasons why it is superior to other blockchains. These characteristics may be present in the material.
- What Is The Near Protocol?
- How Does Near Protocol Work?
- What Is Near Protocol Used For?
- Near Protocol Main Features
- What Is So Distinctive About Near Protocol?
- Near Protocol Roadmap
- FAQs About Near Protocol
- Wrapping Up
What Is The Near Protocol?
Near Protocol Explanation
Layer 1 of the NEAR Protocol leverages the sharding method to provide scalability. For security purposes, NEAR employs smart contracts and the Proof of Stake (PoS) consensus method. In 2020, Alex Skidanov and Illia Polosukhin co-founded the NEAR Protocol, which was built by the NEAR Collective. In order to host decentralized apps, this project is being built as a community-operated cloud infrastructure (DApps).
Smart contracts with cross-chain capability and a broad range of programming tools and languages are available on the NEAR platform to assist developers in creating DApps. Human-readable account names are used instead of cryptographic wallet addresses on the platform, which makes it easier for new users to get started. In 2021, NEAR received the Climate Neutral Product Label for being carbon neutral as a PoS blockchain.
Near Protocol Definition
NEAR Protocol (NEAR) is the ecosystem’s native token. It’s an ERC-20 token with a one-billion-coin maximum supply. NEAR can be used to pay network transaction and storage costs. Additionally, creators of smart contracts might gain a share of the transaction fees generated by their contracts. The network partially “burns” or removes these tokens from circulation, hence lowering the circulating supply of NEAR tokens.
Token holders can also receive incentives by staking on the NEAR Wallet. They stake NEXT in order to operate validating nodes. They may also participate in the governance of the NEAR network by voting on the platform and product-related decisions and making recommendations. Each year, NEAR Protocol raises its token supply by 5%, with 90% of freshly issued tokens going to validators. The remaining is used to fund the blockchain’s treasury and platform development.
Computers using the NEAR Protocol software assure that transactions are accurate and readily identifiable by validators. By staking their tokens on the network, validators get a reward for ensuring the NEAR blockchain’s security and authenticity.
>> Read Also: What Is A dApp – The Gateway To Interact Decentralized
How Does Near Protocol Work?
With DApps ranging from games to financial services, decentralized apps (DApps) have become more popular in the crypto world. There is a clear issue with scalability in the majority of blockchains, though.
Scalability is a prevalent problem with blockchains, particularly with older ones like Bitcoin and Ethereum. Blockchains’ inability to efficiently process huge numbers of transactions at high speeds while still keeping costs under control is mostly to blame for the difficulties.
Near, for example, aims to solve this problem by creating a brand new blockchain with a completely different design. Sharding was Near’s answer to the problem.
Near is able to deconstruct the blockchain into smaller, easier-to-manage chunks because to the sharding approach. As a consequence, the network’s computational load is reduced, resulting in higher transaction throughput.
Near employs a Proof of Stake (PoS) technology, as was previously stated. In order to be considered for participation, nodes wishing to become transaction validators must stake NEAR tokens they own. If a token holder does not desire to manage a node, they can delegate their stake to a designated validator.
Near Protocol Operational Method
When it comes to reaching an agreement, validators with higher stakes tend to have more sway. Every epoch, at a 12-hour interval, Near has an auction to choose a new set of validators.
DApps may be created on Near, exactly like on Ethereum. Serverless computing and decentralized data storage are made feasible by Near’s cloud architecture. Hundreds of servers throughout the world are used to run Near.
Near Protocol Main Features
NEAR Protocol is a Proof of Stake (PoS) blockchain that aspires to compete with existing platforms via its ‘Nightshade’ sharding technology.
Sharding is a blockchain architecture that enables each blockchain node to hold a fraction of the platform’s data. Sharding should improve the efficiency of the blockchain by allowing for a higher transaction rate and cheaper transaction fees.
Nightshade enables NEAR Protocol to retain a single chain of data while decentralizing the computing necessary to maintain it. These pieces of data are processed and added to the main chain by nodes.
One of Nightshade’s primary advantages is that its architecture minimizes possible points of failure in terms of security, as participating nodes are only responsible for keeping smaller pieces of the chain.
The NEAR Protocol incorporates an application called the Rainbow Bridge, which enables players to seamlessly move Ethereum tokens between Ethereum and NEAR.
To transfer tokens from Ethereum to the NEAR Protocol, a user must first fund an Ethereum smart contract with tokens. These tokens are then locked and replacement tokens representing the originals are produced on NEAR’s platform.
Near Main Features
Due to the fact that the original monies are stored in the smart contract, the procedure may be reversed if the user desires to regain their original tokens.
Aurora is a Layer 2 scaling solution based on the NEAR Protocol that enables developers to deploy decentralized Ethereum apps over the NEAR network.
Aurora is built on top of Ethereum’s coding engine, the Ethereum Virtual Machine (EVM), and includes a cross-chain bridge that enables developers to effortlessly connect their Ethereum smart contracts and assets.
Developers may utilize Aurora to combine the NEAR Protocol’s low fees and fast throughput with Ethereum’s familiarity and network of apps.
What Is Near Protocol Used For?
The NEAR token is the ecosystem’s principal native asset, which is accessible to all accounts. Each token, like Ether, is a one-of-a-kind digital asset that may be utilized for a variety of purposes.
You must compensate the system for processing transactions and storing data. Participate in the staking procedure in order to operate a validating node as a network node. Participating in governance procedures enables you to have a say in how network resources are distributed and the network’s technological direction in the future.
The NEAR enables cost-effective synchronization of all network participants, as well as innovative behaviours across the network’s apps.
Earning the NEAR is as simple as participating in development bounties, maintaining a community that enables others to build on NEAR, winning a NEAR hackathon, or being an active member of the community.
What Is So Distinctive About Near Protocol?
NEAR is a next-generation platform for decentralized applications. To do this, it addresses both long-standing challenges in the blockchain realm and ones that have only lately become evident.
For starters, NEAR is lightning quick. It is capable of processing around 100,000 transactions per second (tps) and achieves near-instant transaction completion owing to a one-second block cadence. According to NEAR, its technology enables it to achieve 10,000x cheaper transaction fees than Ethereum – effectively insignificant expenses.
Though its technological benefits are perhaps its most compelling feature, NEAR is also designed to be approachable to individuals with little to no prior understanding of blockchain technology, courtesy of what is referred to as “common sense onboarding.”
This implies that normal users will be able to access dapps developed on NEAR via a familiar registration process. This might help developers reach a larger audience while simultaneously lowering the barrier to entry for those already familiar with dapps.
Why Near Is Special?
NEAR provides developers with a modular component library that enables them to accelerate their development and get their applications up and running rapidly. These include non-fungible token (NFT) implementations, faucets, token contracts, and guest books, among others. The whole set of examples and their source code are available on the official NEAR Github repository.
Near Protocol Roadmap
Phase 0 of the mainnet: PoA Genesis – April 2020 – Mainnet Launch
Near’s multi-stage mainnet implementation began on April 22, 2020. The network utilized a Proof of Authority (PoA) consensus mechanism, with the NEAR Foundation, a non-profit organization dedicated to protocol development, operating the network’s only nodes.
Phase 1 of the Mainnet: Restricted – September 2020 – Network Change
Phase 1 was the second step in the launch of Near’s mainnet. In contrast to the first phase, which was centralized, this phase began with Near’s onboarding of third-party validators. Validators were first handled only by the Near Foundation during the main net initial stage.
Phase 2 of the Mainnet: Community Governed – October 2020 – On-Chain Upgrade
Phase 2 was the final phase of Near’s planned gradual mainnet implementation. Near protocol, governance duties were transferred to the community in this second phase, as determined by an on-chain governance vote. Additionally, this level enabled token transfers and protocol awards.
April 2021 – Rainbow Bridge – Network Integration
The NEAR Foundation built the Rainbow Bridge to link the Ethereum and NEAR blockchains. It is scheduled to begin operations in April 2021.
Near Protocol Roadmap
To learn more about Near Protocol Roadmap click here
FAQs About Near Protocol
How Quickly Does The Near Protocol Work?
NEAR is certainly lightning quick. It supports up to 100,000 transactions per second (tps) and virtually immediately completes transactions due to a one-second block cadence. According to NEAR, its technology enables it to achieve 10,000 times lower transaction fees than Ethereum – virtually negligible expenses.
Is Near A Good Investment?
NEAR is an exciting network that has the potential to host further applications. Influential projects may be developed on the network in the future. Looking ahead, it is predicted that the Near Protocol will introduce a native stablecoin (dubbed USN) in early 2022 — an event that will likely spark DeFi capital rotation into the Near ecosystem, siphoning the entire value held in other alternative layer-one protocols.
NEAR may be an excellent investment for those wishing to diversify into different Layer 1 networks. NEAR may not be the greatest option for investors seeking huge profits in a short period of time.
Is Near A Good Investment?
How Is The Near Token Defined?
The NEAR token is the principal native asset of the NEAR ecosystem, and its functionality is accessible to all accounts. Each token, similar to Ether, is a unique digital asset that may be used to:
Pay for transaction processing and data storage on the system. Participate in the staking process by establishing a validating node as a network node. Participating in governance procedures enables you to influence the distribution of network resources and the future technological direction of the network.
The NEAR facilitates economic cooperation among network users as well as unique behaviours among network-based apps.
Platforms that can cut transaction costs and boost throughput is anticipated to play a major role in the general adoption of blockchain technology in the future. Scaling solutions offered by NEAR might attract developers that are interested in developing more efficient DeFi devices and decentralized apps (DApps).
The NEAR roadmap includes more sharding innovations and layer-2 cross-chain solutions that will assist developers and end-users in the long term.
It is actively working on supporting the Ethereum Virtual Machine (EVM)—the software stack that Ethereum employs to run decentralized applications. A key obstacle to cross-chain launches has been removed, as developers will be able to easily port their Ethereum dapps to NEAR.