NEAR

What Is Near (NEAR) ?

NEAR Protocol is a layer-one blockchain that aims to provide a developer-friendly, decentralized application platform. It is designed to be a highly scalable blockchain network that eliminates some of the limitations of other platforms, such as low transaction speeds, low throughput, and poor interoperability. NEAR Protocol uses a Proof of Stake (PoS) consensus mechanism and has its own unique solutions to scaling problems, including a sharding solution. It is being built as a community-run cloud computing platform and aims to create a developer and user-friendly environment for decentralized applications (DApps). The native token of the NEAR Protocol is NEAR, which is used for staking, transaction fees, and governance within the platform.

History of Near (NEAR)

History

2018: Inception and Fundraising

• NEAR Protocol was founded by Alexander Skidanov and Illia Polosukhin.
• The project conducted its initial fundraising rounds to secure financial support for development.

2019: Mainnet Launch

• NEAR Protocol launched its mainnet, marking a significant milestone in the project's development.
• The mainnet launch allowed developers to start building and deploying decentralized applications on the NEAR blockchain.

2020: Continued Development and Partnerships

• NEAR focused on refining and improving its protocol, addressing any issues identified post-mainnet launch.
• Partnerships with projects and initiatives to expand the NEAR ecosystem.

2021: Ecosystem Growth and Bridge to Ethereum

• NEAR experienced growth in its developer community and ecosystem.
• The NEAR Ethereum bridge was introduced, enabling interoperability between NEAR and Ethereum.

How Does Near (NEAR) Work?

NEAR Protocol is a sharded, Proof-of-Stake (PoS) blockchain designed to provide scalability and usability for decentralized applications (DApps). Below is a simplified overview of how NEAR Protocol works:

1. Sharding Architecture:NEAR uses sharding to horizontally scale its blockchain. Sharding involves breaking the blockchain into smaller parts called "shards," each capable of processing its transactions and smart contracts independently. This parallel processing of transactions across shards is intended to increase throughput and reduce latency.
2. Proof-of-Stake (PoS) Consensus:NEAR employs a PoS consensus mechanism to secure the network. Validators are chosen to create new blocks and validate transactions based on the amount of NEAR tokens they "stake" as collateral. Validators are incentivized to act honestly, as their staked tokens can be slashed if they behave maliciously.
3. Nightshade Consensus Protocol:NEAR uses the Nightshade consensus protocol, a type of sharded PoS consensus, to coordinate and finalize blocks across the network. It enables fast finality and ensures that transactions are confirmed quickly.
4. Account Model:NEAR uses an account-based model similar to Ethereum. Each account has a unique address, and users interact with the blockchain through their accounts. Users can deploy smart contracts, send transactions, and store assets in their NEAR accounts.
5. Smart Contracts:Developers can deploy smart contracts on NEAR to create decentralized applications. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. NEAR's smart contract platform provides a secure and efficient environment for executing decentralized applications.

Tokenomics

What Is NEAR Used For ？

NEAR (NEAR Protocol's native cryptocurrency) is used for various purposes within the NEAR Protocol ecosystem. Here are some key use cases for NEAR:

1. Staking:NEAR tokens can be staked by validators to secure the network. Validators are chosen to create new blocks and validate transactions based on the amount of NEAR tokens they hold as collateral. Stakers, including delegators, can earn staking rewards for participating in the network's security.
2. Network Security:Staking NEAR tokens is a fundamental mechanism for ensuring the security and integrity of the NEAR Protocol. Validators and stakers play a crucial role in consensus and block validation, and they are economically incentivized through token rewards.
3. Governance:NEAR token holders have the ability to participate in the governance of the NEAR Protocol. This includes proposing and voting on protocol upgrades, parameter changes, and other decisions that impact the network. The more NEAR tokens a holder has, the more influence they typically have in the governance process.
4. Transaction Fees:NEAR tokens are used to pay for transaction fees on the NEAR Protocol. When users perform actions such as deploying smart contracts, executing transactions, or interacting with decentralized applications, they may need to pay a small amount of NEAR tokens as fees.
5. Incentives for Developers:NEAR tokens can be used as incentives for developers to build and contribute to the NEAR ecosystem. This could include grants, rewards, or other mechanisms to encourage the development of decentralized applications, protocols, and tools.

Token Distribution

The initial distribution of Near Protocol (NEAR) tokens is as follows:

• 17.20% is allocated to Community Grants and Programs
• 14.00% is allocated to Core Contributors
• 12.00% is allocated to Community Sale
• 11.76% is allocated to Early Ecosystem
• 11.40% is allocated to Operations Grants
• 10.00% is allocated to Foundation Endowment
• 15.23% is allocated to Seed Round
• 8.41% is allocated to Venture Round

Why Is Near (NEAR) Valuable?

NEAR Protocol stands out from other blockchain platforms due to several key features and design principles. Here are some aspects that differentiate NEAR from other blockchains:

1. Sharding for Scalability:NEAR utilizes a sharding technique to enhance scalability. Sharding involves breaking the blockchain into smaller parts, or "shards," each capable of processing transactions independently. This can significantly increase the overall throughput of the network.
2. Developer-Friendly:NEAR is designed to provide a user-friendly environment for developers. It offers tools and resources to make it easier to build and deploy decentralized applications (DApps). The platform aims to reduce the barriers to entry for developers, encouraging broader adoption.
3. Rainbow Bridge for Interoperability:NEAR has implemented the Rainbow Bridge, a mechanism that allows assets to move seamlessly between the NEAR blockchain and Ethereum. This interoperability can be attractive for developers and users who want to leverage the capabilities of both platforms.
4. Nightshade Consensus Mechanism:NEAR employs a consensus mechanism called Nightshade, which is a proof-of-stake (PoS) mechanism designed for scalability. It enables fast and secure transaction processing by utilizing sharding and providing finality to transactions quickly.
5. User-Friendly Wallet and Onboarding:NEAR aims to simplify the user experience by providing a user-friendly wallet and easy onboarding process. This is intended to make it more accessible for non-technical users to engage with decentralized applications on the NEAR platform.
6. Accessibility and Low Transaction Costs:NEAR strives to keep transaction costs low and aims to make blockchain applications more accessible to a wider audience. This focus on affordability can be attractive for developers and users looking for cost-effective blockchain solutions.