NEAR Protocol: A Community-Run Cloud Computing Platform

NEAR Protocol is a smart contract-capable, public Proof-of-Stake blockchain that aims to act as a community-run cloud computing platform. It is a layer 1 blockchain network that provides a platform on which developers can build decentralized applications (dapps).

Competing with Ethereum

NEAR Protocol is considered a competitor to Ethereum, a well-known layer 1 blockchain network. It focuses on improving transaction costs, speed, and scalability, which are important factors for layer 1 networks.

NEAR Protocol is faster and cheaper than Ethereum.
It promises to be faster than other major competitors like Solana.
When fully implemented, NEAR is expected to process up to around 100,000 transactions per second (TPS).
Ethereum, in comparison, averages double-digit transactions per second.

NEAR Protocol aims to offer fast (~1 second), quick to finality (~1-2 seconds), cheap (less than a penny), and secure transactions, based on its technology.

The NEAR Blockchain Operating System (BOS)

NEAR also offers the NEAR Blockchain Operating System (BOS), which makes it easy to create and distribute decentralized apps across any blockchain. The BOS allows developers to use familiar programming languages like JavaScript to build apps without needing to learn a new language.

Developers can build quickly with existing components and combine them to create their own apps.
The BOS enables onboarding users without the need for crypto, making it more accessible.
NEAR's public blockchain platform allows anyone to inspect, modify, and reuse the source code of its components.
The BOS eliminates intermediaries and connects app publishers directly with users.
NEAR Protocol offers speed, low cost, and scalability for app development, with the ability to build on multiple chains.

Overall, NEAR Protocol aims to be a user-friendly platform for developers to build and distribute decentralized applications, while contributing to the development of a more open web.

Where Can You Buy the Cryptocurrency NEAR Protocol?

Binance

Binance is a centralized exchange where you can buy several cryptocurrencies, including NEAR Protocol. It offers low fees and high security. To buy NEAR Protocol on Binance, you can create a free account on their website or app.

Coinbase

Coinbase is a centralized exchange where you can buy NEAR Protocol. Follow these steps to buy NEAR Protocol on Coinbase:

Create a Coinbase account and complete the sign-up process.
Verify your ID and address.
Add a payment method, such as a bank account or debit card.
Select NEAR Protocol from the list of assets.
Enter the amount you want to buy in your local currency and complete the purchase.

MoonPay

MoonPay offers a fast and easy way to buy NEAR Protocol with a credit card. Here are the steps to buy NEAR Protocol on MoonPay:

Enter the amount in NEAR or fiat currency that you want to purchase.
Enter your NEAR wallet address.
Verify your email and basic information.
Complete the purchase.

Finder.com

Finder.com provides a step-by-step guide on how to buy NEAR Protocol. They also offer a list of platforms where you can buy NEAR Protocol. Here is a summary of the process:

Create an account on a cryptocurrency exchange.
Verify your email address and identity.
Deposit USD using your preferred payment method.
Exchange your funds for NEAR Protocol.
Withdraw your NEAR Protocol to your personal wallet if desired.

Securities.io

Securities.io also provides a guide on buying NEAR Protocol. Here is a summary of the process:

Compare cryptocurrency exchanges that offer NEAR Protocol.
Create an account and verify your email address and identity.
Make a deposit using a debit card, credit card, wire transfer, or Bitcoin.
Use your funds to buy NEAR Protocol.

Note: Trading cryptocurrency involves risk, and it's important to understand the risks before buying NEAR Protocol.

Founders of NEAR Protocol

Alexander Skidanov and Illia Polosukhin are the founders of NEAR Protocol.

They started NEAR.AI in early 2017 with the aim of exploring program synthesis, which is the field of automating programs from a human specification.

The vision behind NEAR Protocol was to create a decentralized application platform that is scalable, secure, and user-friendly. Initially, NEAR.AI was focused on artificial intelligence and had no connection to blockchain or cryptocurrencies.

Since its founding, Alexander Skidanov and Illia Polosukhin have been the visionary minds driving the development of NEAR and its ecosystem.

NEAR Protocol has become one of the most prominent blockchain protocols in the industry, boasting 25 million accounts and 446,000 daily transactions.

NEAR Protocol aims to provide the performance and user experience necessary to bridge the gap to mainstream adoption of decentralized applications. It is designed to be easy for developers and end users while still offering the scalability required to serve a large user base.

NEAR Protocol Roadmap 2023-4: The Next 2 Years of NEAR

The NEAR Protocol has outlined its roadmap for the next two years, focusing on evolving the protocol and prioritizing technical advancements to benefit builders and users.

The roadmap is a living document that welcomes suggestions and proposals for the protocol's evolution.

Experience and Core Components

The roadmap consists of two major components: Experience and Core. The Experience section focuses on user and developer experiences, as well as the necessary protocol features to enable those experiences.

For example, the roadmap aims to allow iPhone users to freely utilize applications built on NEAR without requiring them to register an account, by implementing meta transactions and support for Secp256r1 keys.

The Core section of the roadmap encompasses efforts to improve scalability and decentralization. It highlights the launch of phase 2 of sharding as a significant feature, which will scale the network to 100 shards without validators tracking all shards.

Phase 2 is planned for 2023, and the roadmap also includes phase 3 of sharding, which dynamically adjusts the number of shards based on demand and is set to be delivered by 2024.

Future Plans

The NEAR Protocol's future plans include the following exciting features and developments:

Continued focus on sharding to improve scalability and enable a greater number of transactions on the network
Enhancements to user and developer experiences through the implementation of protocols features such as meta transactions and support for Secp256r1 keys
Continuous solicitation of suggestions and proposals from the community for the evolution of the protocol
Exploration of additional features and enhancements to further enhance the NEAR Protocol ecosystem

Introduction to NEAR Protocol

The NEAR Protocol is a platform built to empower developers and create a decentralized, open web that is accessible to everyone. You can think of the NEAR Protocol as a digital infrastructure, much like a freeway system for digital traffic. But instead of cars and trucks, the NEAR Protocol transports information and transactions in a secure and efficient manner.

What makes the NEAR Protocol special? Its primary distinguishing attribute is its developer-friendly nature. In layman's terms, it's a system that has been designed to make it easy for developers to build and innovate. If we consider our "freeway system" analogy, it's as if the NEAR Protocol has provided ample well-signposted off-ramps, pedestrian bridges and overpasses, making navigation simple and intuitive.

In addition, the NEAR Protocol champions security and high performance. This means that it is built to prevent unauthorized access or tampering, which is of vital importance in the realm of cryptocurrencies and digital transactions. High performance, on the other hand, ensures that all operations conducted on the platform are processed rapidly and efficiently.

Simplified, the NEAR Protocol is like a superhighway built to facilitate safe and quick transport of digital assets and information. It's a platform that is open to all and designed to encourage innovation while demanding high security and performance.

The aim of platforms like NEAR Protocol is facilitating a future where decentralized apps (dApps) are as common and easy to use as today's web apps. In this future, transactions of all types are secure, rapid, and transparent, creating an inclusive digital ecosystem that benefits all users. It's like building the ground layer for a new internet that runs on trust, openness, and community collaboration.

How NEAR Protocol Works

Sure, here's the guide:

What is Sharding?

Imagine a restaurant with only one waiter trying to serve 200 tables. It would be slow and inefficient. Now, imagine the same restaurant with 20 waiters, each serving 10 tables. Suddenly, the service has become more streamlined and efficient. That is the general principle behind sharding - it is a way to spread out the data processing responsibility among many nodes rather than one.

In the context of NEAR protocol, the blockchain network is broken down into smaller pieces called 'shards'. Each shard can process its own transactions and smart contracts. Since all these shards are processing transactions simultaneously, it significantly increases the network's ability to scale and handle more transactions per second.

Proof-of-Stake Consensus Algorithm

In blockchain technology, a consensus algorithm is a way for all computers on a network to agree on the state of shared data. The NEAR Protocol uses a consensus mechanism known as 'Proof-of-Stake'(PoS). In contrast to Proof-of-Work (PoW), the PoS approach doesn't require miners to solve complex puzzles, which is both time-consuming and energy-draining.

In the Proof-of-Stake system, validators are chosen to create a new block based on the number of NEAR tokens they hold and are willing to 'stake' as collateral. The more tokens staked, the higher the chances of being chosen. The system is designed to discourage dishonesty; if the validator tries to manipulate the transaction data within the block, their stake can be taken away.

Fast and Low-cost Transactions

The NEAR Protocol's design allows for fast, efficient transactions. Utilizing the sharding technique, the processing of transactions is split across multiple shards, speeding up the transaction time. Transactions no longer have to wait in a long, linear queue as with traditional consensus mechanisms; instead, they're processed concurrently, leading to increased throughput.

The use of the Proof-of-Stake consensus algorithm also surprisingly contributes to lower transaction costs. Since there is no need for high energy consumption as in Proof-of-Work systems, the transaction fees associated with the NEAR Protocol are kept affordable, making it a highly interesting alternative to other blockchain technologies.

The Security of NEAR Protocol

The NEAR Protocol has implemented a number of advanced strategies to ensure they maintain an utmost level of security in their system, protecting users and their transactions. One of the core methods applied by NEAR Protocol is a system called Nightshade.

Nightshade is an innovative method that responds to critical challenges faced by traditional blockchain platforms. The technique involves splitting transactions into smaller segments known as 'shards'. This partitioning allows the transactions to be processed in parallel rather than sequentially, thus speeding up the overall processing time.

Sharding

The concept of sharding is not new. It has been successfully utilized in various fields such as database management to speed up processes. When applied in blockchain technology, each shard handles a portion of the network's transaction load. This way, the workload is divided, promoting efficiency and high-speed processing.

When translating this concept for use in the NEAR Protocol, every shard is effectively a smaller, lighter blockchain working in conjunction with others. This interconnected yet decentralized framework allows for more transactions per second, improving the scalability of the platform.

Security Optimization

While the primary goal of Nightshade is to increase the speed and efficiency of transactions, the method also has notable security benefits. By splitting the blockchain into smaller, more manageable shards, potential weaknesses are isolated. This means that even if one shard were to be compromised, the overall security of the NEAR Protocol would remain intact.

In addition, every shard in the NEAR Protocol's sharded blockchain is independently validated. This layer of individual validation serves as a powerful deterrent to potential attackers. Because attacking just one shard wouldn’t offer control over the network, the incentive for such hacking efforts is greatly reduced.

To sum up, through Nightshade, the NEAR Protocol has taken a significant leap towards not only refining transaction speed but also enhancing security. By partitioning transactions into shards, the system is able to handle high volumes more efficiently, without compromising on safety. Consequently, this mechanism allows the NEAR Protocol to provide a more secure and dependable platform for users interested in cryptocurrency dealings.

The Use Cases of NEAR Protocol

NEAR Protocol is a decentralized platform designed to facilitate the development and execution of software applications on the blockchain. What makes it unique is its focus on usability and scalability - two common obstacles in broader blockchain adoption. NEAR is designed to simplify the process of creating and using decentralized applications, or dApps, which operate on a peer-to-peer network, without the need of a middleman.

Building Decentralized Applications (dApps)

With NEAR Protocol's powerful and accessible platform, developers can create decentralized applications with relative ease. These applications, known as dApps, unlike traditional apps, operate on blockchain technology. Such an environment allows for a more direct and transparent interaction between users and applications. This in turn enhances security, privacy, and general trustworthiness - qualities that are highly prized in the digital age. The fact that NEAR Protocol is designed to handle large volumes of transactions efficiently and affordably makes the platform attractive for dApps developers.

Token Transfers

NEAR Protocol also enables fast, secure and low-cost token transfers. Users can conveniently carry out transactions using NEAR tokens, the network's native currency, which is not only useful for facilitating operation costs on the platform (like paying for transaction fees), but can also be used in the wider NEAR economy across various dApps and services. Handling these transactions on the NEAR Protocol's decentralized network means that transfers escape the usual problems associated with more traditional monetary systems such as delays, excessive fees, or reliance on third parties.

Creating New Economic Models

What sets NEAR Protocol apart is its potential to create new economic models. As it's a programmable economy running on a platform offering flexibility and scalability, developers can explore unique economic models that would not be possible in a traditional economic system. For instance, developers can create unique incentivization structures, customer loyalty models, revenue-sharing plans, or even entirely new forms of digital goods and services. The only limit here is the imagination of the dApp creators. In other words, the NEAR Protocol offers a platform for economic innovation in a wide array of industries.

NEAR Protocol's Token Economy

NEAR tokens, native to the NEAR Protocol, have significant bearing on the operational aspects and overall functioning of this platform. They are not only a digital currency but also integral for managing network governance and incentivizing participation. Let's dive in to understand their role and function more in-depth.

Foundational Units of NEAR Economy

The NEAR tokens serve as the base currency of the NEAR economy's transactional operations. As a user or an investor, you can use these tokens to buy, sell, and trade goods or services within the NEAR community. Also, they play a vital role in providing liquidity to the NEAR platform and establishing a stable economic system. It is their integral value and easy tradeability that makes them the backbone of the NEAR ecosystem.

Facilitating Network Operations

Beyond serving as a medium of exchange, NEAR tokens are used to facilitate network operations. These operations include processing of transactions and storage of data. When a user performs an action on the NEAR Protocol, such operations require computational resources. These resources, then, are paid for in NEAR tokens, thus making them an integral part of the network operations. This usage adds to the demand for NEAR tokens and contributes to their value.

Incentivizing Node Operation

NEAR Protocol operates on a Proof-of-Stake (PoS) consensus mechanism. Under this mechanism, network participants, also known as validators, are required to "stake" or lock up their NEAR tokens as a form of collateral. These validators help maintain network security, validate transactions, and produce new blocks on the blockchain. In turn, they are rewarded with additional NEAR tokens. This is a big incentive for people to operate nodes and contribute to the stability and security of the NEAR Protocol.

Moreover, NEAR Protocol introduces the concept of 'sharding' where operation loads are distributed across multiple nodes to improve scalability. Nodes participating in these separate shards are given NEAR tokens as rewards, fuelling further incentive for operation.

Network Governance

Last but not least, NEAR tokens play a pivotal role in network governance, allowing holders to vote on critical protocol changes and upgrades. By giving token holders a say in the functioning and evolution of the network, NEAR protocol embraces a decentralized model of governance that is designed for and driven by its community.

In summary, NEAR tokens aren’t simply a means of value transfer. They are the lifeblood of the NEAR Protocol, enabling transactions, promoting network security and decentralization, and incentivizing active participation from its user base. By understanding their varied roles, one can truly appreciate the multifaceted utility of these tokens within the NEAR economy.

Challenges and Criticisms of NEAR Protocol

One potential issue NEAR Protocol could face is the hurdle of broad adoption. For those unfamiliar with cryptocurrency terminology, broad adoption refers to being widely accepted and used by a large number of people, businesses, and organizations. Bitcoin, for example, has achieved relatively broad adoption in the past few years.

However, achieving this level of acceptance is not easy. In the case of NEAR Protocol, it is competing not only against traditional financial systems but also against established cryptocurrencies like Bitcoin and Ethereum. Convincing people to switch to a new and relatively unknown digital currency can be very difficult.

Besides, people can be resistant to change, particularly in something as important as their monetary system. Other potential users may simply be unaware of NEAR Protocol or uncertain about how to use it. Since blockchain technology and cryptocurrencies can be complex and difficult to understand for those not technically inclined, this could present a significant challenge for NEAR Protocol.

Regulatory Scrutiny

Another potential issue that NEAR Protocol could face is regulator scrutiny. This has been a problem for many cryptocurrencies in the past. Given that cryptocurrencies operate in a somewhat grey area of the law, they often come under the microscope of regulators and governmental bodies.

Each country has its rules and regulations regarding cryptocurrencies. For instance, some countries have embraced digital currencies, while others have strongly discouraged their use. If NEAR Protocol becomes popular, it could easily attract the attention of regulatory authorities which could limit its accessibility or operability in some jurisdictions.

Regulators might also impose new laws to ensure the security and proper function of NEAR Protocol or other blockchains. This could potentially slow down development or make it harder to operate, especially if NEAR Protocol has to comply with a variety of different rules and regulations in different countries.

Technical Limitations

Finally, given that the NEAR protocol is a relatively new digital innovation, there may be possible technical limitations or undiscovered flaws. With any new technology, there are bound to be bugs, vulnerabilities, or oversights that weren't apparent during development. Over time, these issues could potentially be exploited, or impair the proper function of the cryptocurrency, potentially undermining users' trust in the system.

Future of NEAR Protocol

The NEAR Protocol is a relatively new addition to the world of cryptocurrencies. Its future prospects, like those of any other cryptocurrency, hinge on a number of factors such as the rate of adoption, technological advancements, and prevailing market conditions. Analyzing these will give us a reasonably good idea of where NEAR Protocol is headed in the years to come.

The popularity of cryptocurrencies is largely determined by the rate at which they are adopted by users, businesses, and investors. If NEAR Protocol quickly gains the attention of these key players, the demand for the coin will likely increase, and this could drive up the coin's price. NEAR's potential for high adoption is exemplified in its unique proposition of simplicity and scalability, making it easier for developers to create decentralized applications. It also uses a unique consensus mechanism called "Doomslug," which promises faster processing times, high scalability and efficiency.

Technological Advancements

NEAR Protocol's future prospects are also tied to its technological growth. It runs on the novel NEAR Protocol blockchain, which is developed to facilitate decentralized storage and computation. The protocol employs sharding technology to further optimize processing speed and cost, something which holds promise for large-scale dApps and could give it an edge in the increasingly competitive crypto landscape. If these features can outpace competing technologies, it could lead to a rise in NEAR's value.

Market Conditions

Market conditions, both in the cryptocurrency sphere and the wider financial world, will play a big role in determining the future of NEAR Protocol. Bullish market trends could boost the price of NEAR, while bearish trends could have the opposite effect. However, NEAR Protocol's unique value proposition and potential for scalability could offer some protection against market volatility, making it a potentially stable addition to any cryptocurrency portfolio.

The future of any cryptocurrency is highly speculative and subject to many unpredictable factors. With NEAR Protocol's strong technological foundation and potential for broad adoption, it has promising prospects, but this must be balanced against a backdrop of financial uncertainty and a rapidly-evolving cryptocurrency landscape.

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