What Is Near Protocol Coin (NEAR) & How It Works: Full Review Of 2022 For Crypto Traders

What is NEAR Protocol (NEAR) & How Does It Work

With a lot of interesting features, and big investors are also eager to support the project, NEAR coin is attracting attention. In today’s article, we will learn what Near Protocol is and all the details about the tokenomics of the NEAR coin.

What is NEAR Protocol (NEAR)?

What is NEAR Protocol

Near is a layer-1 (layer 1) blockchain, NEAR Protocol (NEAR Protocol), which has been attracting interest from investors since the coin was officially launched in late 2020. Designed As a community-run cloud platform, the protocol has developed a number of technological solutions to solve problems other blockchains tend to have, including slowness and interoperability. poor .

The protocol’s designers claim it is a user-friendly platform with a human-readable username and NEAR’s goal is to make the cryptocurrency widely accepted. As stated on its website, the project’s mission is to create an ecosystem that is “secure enough to manage high-value assets like money or identities, and efficient enough to make them useful for the average user”.

NEAR Protocol works under Public Proof of Stake and Sharded mechanism. It is like a community run, highly scalable and low cost cloud platform for developers to create decentralized applications easily. NEAR is secure enough to manage high-value assets like money or identities and efficient enough to make them useful, especially given the power of Open Web in the hands of users.

Background of NEAR Protocol

NEAR Protocol (NEAR Protocol) was created by Illia Polosukhin and Alexander Skidanov in 2017 in San Francisco, California. Skidanov studied computer science at Ishevsk State Technical University in Udmurtia, central Russia (European part). He continued to work as a software developer at Microsoft before working for MemSQL for more than 5 years in the US.

The protocol generated $21.6 million in May 2020, which was sufficient to cover the cost of the first MainNet deployment phase. The financing was headed by well-known tech investor Andreessen Horowitz.

In October 2021, the NEAR Protocol cryptocurrency announced grants amounting to nearly $800 million to support the further development of the ecosystem. This Y-Combinator-incubated project has received funding from major blockchain investors such as Coinbase Ventures and Pantera.

How Does the NEAR Protocol Work?

How Does the NEAR Protocol Work

  • One of the important ways the protocol works is the speed at which transaction verification and new block generation are introduced into the system. Using a concept known as Doomslug, blocks can be added to the ledger after just one round of confirmations. Compared to Ethereum, where users need to wait about 35 confirmations before a block is fully confirmed and added to the blockchain, according to company documents, Doomslug speeds up the process significantly, allowing for more processing. more transactions per second (tps).
  • NEAR also uses a type of sharding technology called Nightshade. Sharding works by breaking the blockchain into smaller segments. This means that each shard is responsible for its own data set. Nightshade allows the NEAR cryptocurrency protocol to process 100,000 transactions per second, which is significantly higher than both Bitcoin (5-7 tps) and Ethereum (15 tps). Furthermore, each shard has 100 validators, and as demand grows and the ecosystem needs to scale, the project simply adds another shard.
  • Similar to Ethereum’s Virtual Machine, the NEAR project has developed a layer 2 (layer 2) blockchain called Aurora, which enables complete code interoperability. This means that any code written for the Ethereum blockchain will work seamlessly on the Aurora chain. All the developers need to do is copy and paste it into the Aurora program.
  • Finally, unlike most blockchains, NEAR has focused heavily on developing a user-friendly interface. Instead of a wallet address, participants will have readable names. This will definitely make NEAR more appealing and accessible to non-tech savvy people who want to get into crypto but are stymied as it seems too technical.

What Problems Does NEAR Protocol Solve?

What Problems Does NEAR Protocol Solve

Currently, most blockchain projects are facing the problem of decentralization and scalability.

To solve these problems, the NEAR team designed a new sharding network (nightshade) focused on mobile devices, and further applied the Thresholded Proof of Stake consensus mechanism in distributed computing. This approach will reduce the barriers to entry of devices.

In addition, NEAR is also working on developing mobile phone devices to become nodes. When successful, NEAR can scale up to millions of nodes and billions of transactions in a fully decentralized manner. With NEAR, there is no limit to the network’s capacity.

Technically, NEAR Protocol is built using a new consensus mechanism called Doomslug. This means that the NEAR platform has the same ecosystem level as other projects Ethereum, EOS or TRON…. NEAR Protocol even allows developers to create Dapps on it. In addition, it has similarities with Amazon’s AWS platform, where most of the applications you know and love are hosted on their servers. However, the NEAR platform is not actually run and controlled by one company, rather thousands or even millions of people. You might call it a community-run cloud.

  • Developers/Entrepreneurs: they will no longer have to suffer “torture” from a single company like Amazon or even the government. During development, they also got free access to some additional apps like billing programs and coding — a challenge to set up with a traditional app.
  • Users: for decentralized applications, the code is open source. Everyone knows exactly what it’s doing, and can’t be changed once it’s launched. So there is no chance for shady behavior with user assets or data. Even apps can’t hoard their data.

The NEAR Protocol Team

The NEAR team consists of many talents from around the world. With years of experience working with major giants like Google, Microsoft, Mozilla, Firefox, Facebook, and MemSQL, the engineers are quite skilled technically. The International Collegiate Programming. NEAR Protocol is the brainchild of two developers Alex Skidanov and Illia Polosukhin.

  • Alexander Skidanov is a former software engineer at Microsoft and the technical director of MemSQL before starting NEAR.
  • Illia Polosukhin worked as a technical manager in Google’s Renowned Research division, where he worked on the language technologies currently used in Google Translate.

Partnerships

The protocol has partnerships with the following companies:

  • Ledger Nano S – a hardware wallet.
  • Binance – one of the largest cryptocurrency exchanges.
  • Cobo Wallet – a cryptocurrency wallet.
  • Bibox – a cryptocurrency exchange.
  • KuCoin – a cryptocurrency exchange.
  • Changelly – a service that allows you to buy cryptocurrency with a credit card.
  • Bithumb – a cryptocurrency exchange.
  • Upbit – a cryptocurrency exchange.
  • Bittrex – a cryptocurrency exchange.
  • Huobi Global – a cryptocurrency exchange.

In addition, Near is also associated with a number of other companies

Read more: Binance Vs BinanceUS Guide 2022: Which Exchange is Best?

What Is NEAR Token?

The NEAR token is a utility token that allows users to interact with the NEAR Protocol. The main use cases of the NEAR token are for staking, gas fees, and participating in governance. NEAR stakers earn rewards based on their stake, which can be used to cover gas fees. Users can also use the NEAR token to vote on proposals and make decisions about the future of the protocol.

Basic Information About NEAR

  • Ticker: NEAR
  • Blockchain: Near
  • Token type: Utility + Governance.
  • Token standard: BEP20
  • Contrac: 0x1fa4a73a3f0133f0025378af00236f3abdee5d63
  • Total Supply: 1,000,000,000
  • Circulating Supply: 763,979,003.00 NEAR
  • Fully Diluted Market Cap: $5,354,404,476

Token Allocation

1 billion NEAR coins will be divided according to the following ratio:

  • Backers: 17.6%.
  • Community Grants, Program,…: 17%.
  • Core Contributors: 14.5%.
  • Early Ecosystem: 13.3%.
  • Operation Grants: 11.5%.
  • Community Sale: 10%.
  • Foundation Endowment: 10%.
  • Small Backers: 6.1%.

Token Allocation of near

Token Sale

2.5% equivalent to 25 million NEAR coins was opened for sale on 12/08/2020 on Coinlist and this activity has ended.

Price of NEAR Today

  • The average value NEAR price for convert (or exchange rate) during the day was $3.0851.
  • NEAR trading volume was 873.14 M. This is equal to -11.59% of the total trading volume of all cryptocurrencies for this day.
  • Market Cap: $4,090,803,052

What is NEAR Used For?

NEAR coin will be used for the following purposes:

  • Payment of fees for transaction processing and data storage systems. The NEAR token is primarily used to pay transaction fees and as collateral for storing data on the blockchain.
  • Run a validator node, staking to earn rewards. The NEAR token is used for the staking that underpins the validation of blocks on the network. NEAR also rewards several stakeholders in the blockchain with NEAR tokens.
  • Participate in ecosystem governance.

How to Buy NEAR Tokens

How to Buy NEAR Tokens?

If you wish to buy NEAR tokens, you can do so through some of the major exchanges including Binance, OKEx, and KuCoin.

The token was initially listed on Binance Launchpad, but it is now available on Binance, KuCoin, and OKEx.

Other than these three exchanges, you can also buy this token from the NEAR Foundation’s own marketplace. The NEAR marketplace is a decentralized application (dApp) designed for buying, selling, and transferring NEAR tokens.

You can also use this marketplace to buy other digital assets and services.

Read mored: Best Crypto Exchanges For Trading In 2022: Centralized Exchanges

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How to Store NEAR Coins?

The most secure way to store NEAR coins is in a cold wallet. A cold wallet is a physical device that is not connected to the internet and is used to store digital assets.

Another way to store NEAR coins is on an exchange. Investors can store their NEAR tokens in any ERC20 compatible wallet such as MetaMask, Trust Wallet, or MyEtherWallet.

Read mored: What is Metamask and Trust Wallet? Difference of Metamask Vs Trust Wallet? Which Is Better For You 2022

Goals of NEAR Protocol

NEAR Protocol is a decentralized application platform that was developed with an emphasis on speed, scalability, and ease of use. NEAR Protocol’s primary goals are to provide developers with a simple and efficient way to build decentralized applications, and to make those applications available to as many people as possible.

To achieve these goals, NEAR Protocol uses a unique consensus algorithm called “Nightshade” that is designed to be both fast and scalable. Additionally, NEAR Protocol features a “virtual machine” that allows developers to write their applications in any programming language.

Finally, NEAR Protocol is designed to be “permissionless”, meaning that anyone can participate in the network without needing approval from a central authority.

Prospect Of NEAR

The NEAR team has a lot of ambitious plans for the future. Some of the things they are planning to do include:

  • Making it easier for developers to build on NEAR
  • Improving the scalability of NEAR so that it can handle more transactions
  • Adding new features to NEAR, such as smart contracts
  • Making NEAR more user-friendly
  • Increasing the adoption of NEAR by businesses and individuals

FAQs

FAQS NEAR

How to earn NEAR tokens?

Some methods for earning NEAR tokens include participating in the NEAR Foundation’s incentivized testnet program, developing applications on the NEAR platform, or providing liquidity to the NEAR/USD pair on the Bancor Network.

Should you invest in NEAR Protocol?

Before investing in any cryptocurrency, you should always research the project thoroughly and decide if it is a good fit for your investment goals. Some factors you may want to consider include the team’s experience, the use case of the token, and the project’s roadmap.

Is investing in NEAR risky?

There is always risk involved when investing in cryptocurrency. The value of NEAR could go up or down and it is important to do your own research before investing.

There are a few reasons why NEAR Protocol is popular.

  • First, it is one of the few protocols that uses sharding, which allows it to process transactions more quickly than other protocols.
  • Second, it has a unique staking system that allows users to earn rewards for participating in the network.
  • Finally, the team behind NEAR Protocol is experienced and has a strong track record in the industry.

Is it the right time to buy NEAR?

This is difficult to answer, as it depends on NEAR’s market performance and the investor’s personal circumstances. Ultimately, it is up to the individual investor to make this decision.

What can I buy with NEAR?

You can use NEAR to buy a variety of things, including digital assets, services, and goods.

How is NEAR Protocol different from other blockchain projects?

NEAR Protocol is a decentralized application platform that enables developers to build scalable blockchain applications. NEAR Protocol is different from other blockchain projects because it uses sharding to improve scalability and enable developers to build applications that can scale to millions of users.

Can I convert NEAR Protocol coins to other currencies?

The answer is yes, you can convert NEAR Protocol coins to other currencies.

How can I find more information about NEAR Protocol?

The best place to start is the NEAR Protocol website. You can also find information about NEAR Protocol on GitHub and in the NEAR Protocol documentation.

Conclusion

Through this, I hope you understand what NEAR coin is as well as the future development of this digital currency. If you have any comments about the NEAR Protocol project you want to share, you can leave a comment for everyone to discuss!

Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.

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