NEAR Protocol Price（NEAR）

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What Is NEAR Protocol?

NEAR Protocol is a smart contract capable, public Proof-of-Stake (PoS) blockchain that was conceptualized as a community-run cloud computing platform. Built by the NEAR Collective, NEAR was designed to host decentralized applications (dApps), and strives to compete with Ethereum and other leading smart contract-enabled blockchains like EOS and Polkadot. NEAR’s native token is also called NEAR, and is used to pay for transaction fees and storage. NEAR tokens can also be staked by token holders who participate in achieving network consensus as transaction validators.

NEAR Protocol is focused on creating a developer and user friendly platform. To accommodate this mission, NEAR has incorporated features like human-readable account names as opposed to only cryptographic wallet addresses, and the ability for new users to interact with dApps and smart contracts without requiring a wallet at all.

NEAR Protocol technology

As decentralized applications (dApps) have grown in popularity, the crypto community has faced an increasing scalability problem. In this context, scalability refers to a blockchain’s ability to handle a large number of transactions quickly and cost-effectively. Ethereum has faced particular challenges in this regard due to high demand for its usage. While some advocate scaling solutions built on top of Ethereum (Layer-2 solutions), projects like NEAR have opted to develop entirely new blockchains with different architectures.

The NEAR Protocol’s proposed solution to this problem is to implement sharding. Before explaining what this means, it is useful to identify the three main functions of blockchain nodes: processing transactions; communicating validated transactions and completed blocks to other nodes; and storing the state and history of the entire network. As network congestion increases, these tasks become increasingly demanding for the nodes.

Sharding reduces the computational load by splitting or partitioning the network into shards, or fragments. With this approach, nodes are not required to run all of the network’s code, only the code relevant to their shard. This enables shards to conduct computation in parallel, thereby scaling the network’s capacity as the number of nodes increases.

What Is NEAR Token?

You can pay transaction fees and use the NEAR token as collateral to store data on the blockchain. The NEAR token is rewarded to those who play an important role in the blockchain ecosystem, like those who validate transactions. On a yearly basis, validators receive rewards equal to 4.5% of the total NEAR supply per epoch.

A percentage of the transaction fees generated by smart contracts also go to the developers who created them. To increase the token’s scarcity, the leftover portion of each transaction fee is burned. To fund future ecosystem development, the NEAR protocol has set up a treasury that receives 0.5% of all NEAR tokens each year.

Non-fungible tokens (NFTs) and “wrapped” tokens from other chains are both supported by the NEAR protocol, which has built a bridge with Ethereum so that users can move their ERC-20 tokens over.

How to buy NEAR?

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