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Altcoin Review

What Is NEAR Protocol (NEAR)? All You Need To Know

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Category

Altcoin Review

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

3 mins
Last update


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Key Takeaways

  • NEAR Protocol is a blockchain network designed from the ground up to function as a community-run cloud computing platform.
  • NEAR utilizes sharding to improve scalability and handle more transactions per second. (Sharding splits the blockchain into smaller pieces to distribute the workload).
  • The project aims to overcome challenges other blockchains face, such as slow transaction speeds, low throughput, and restricted interoperability.

What Is NEAR Protocol (NEAR)?

NEAR Protocol (NEAR) is a decentralized application platform that facilitates developers’ building and deploying applications on the blockchain. The project utilizes a sharded, proof-of-stake consensus mechanism to address scalability and usability issues often associated with blockchain technology.

How Does NEAR Protocol (NEAR) Work?

Near Protocol (NEAR) is a blockchain platform built to address some limitations of earlier blockchain technologies, particularly scalability. Here’s a breakdown of how it works:

Transaction Validation

When a transaction occurs on the NEAR network, validators must verify its legitimacy. This involves a process where validators check if the transaction adheres to the network’s rules and if the sender has enough NEAR tokens to cover the fees.

Block Creation

Validated transactions are grouped into blocks. A process for selecting validators to create these blocks can involve factors like their stake amount and past performance.

Sharding and Block Finalization

Sharding splits the network into sections (shards). Each shard has its block creation process. Then, another process ensures all the shards agree about the network’s final state. This is where Nightshade, NEAR’s sharding technology, comes in.

Staking and Delegation

Staking NEAR tokens is a process where users lock up their tokens to participate in the consensus mechanism. Validators are chosen based on the amount they have staked. Users who don’t want to run a validator can delegate their stake to another validator, a process with its rules.

Additional Points

NEAR uses a Rainbow Bridge to connect with the Ethereum blockchain, allowing assets and information to flow between the two networks and enabling interoperability.

NEAR Protocol (NEAR) Token And Tokenomics

Tokenomics

The NEAR token is the native cryptocurrency of NEAR Protocol. It is used for:

  • Paying transaction fees
  • Data storage
  • Staking
  • Governance

Token Details

Total Supply 1,178,266,083 NEAR

Circulating Supply 1,043,761,976 NEAR

Current Price $6.28

Market Capitalization $6,556,702,625

This information is current as of March 18th, 2024, and the token’s price, market value, and available supply may fluctuate.

Distribution

  • Community Grants & Programs (17.20%)
  • Core Contributors (14.00%)
  • Community Sale (12.00%)
  • Early Ecosystem (11.76%)
  • Operations Grants (11.40%)
  • Foundation Endowment (10.00%)
  • Seed Round (15.23%)
  • Venture Round (8.41%)

Additional Points

There is an inflationary emission rate for NEAR tokens, meaning the total supply increases over time.

Where Can I Buy NEAR Protocol (NEAR)?

  • Binance: Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
  • Bybit: This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
  • KuCoin: A smaller exchange is known for its competitive fees and support for many cryptocurrencies.

Is NEAR Protocol (NEAR) A Good Investment?

Whether Near Protocol (NEAR) is a good investment depends heavily on your investment goals and risk tolerance. Here’s a quick overview:

Pros:

  • Scalability – NEAR uses sharding technology to achieve high transaction speeds (potentially over 100,000 per second) and low fees, addressing the limitations of older blockchains like Ethereum.
  • User-friendliness – NEAR offers a user-friendly experience with human-readable account names, making it easier to interact with the platform than complex crypto addresses.
  • Interoperability – The Rainbow Bridge allows for easy transfer of assets between NEAR and Ethereum blockchains.

Cons:

  • Limited Adoption – NEAR has a smaller user base than established players, which could affect its ecosystem growth.
  • Newer Technology – NEAR is a relatively new protocol compared to others, and its long-term viability needs to be proven.

Final Thoughts

NEAR Protocol offers a compelling vision for a scalable and user-friendly blockchain platform. Its sharding technology and human-readable accounts address some key challenges older blockchains face. However, as with any cryptocurrency investment, approach this asset class cautiously and conduct thorough research to align with your risk tolerance and investment goals.