The volatility of the crypto space has facilitated enrichment in the 21st century. All you have to do is invest low and profit high, but we both know it can’t be that simple. Either way, you are already looking for a coin that you can buy from over 10,000 cryptocurrencies in the market and keep planning your retirement. Fortunately, you were able to come up with a list.
However, stay away from these pieces on your list. Let me interest you in the NEAR protocol. So, consider these five reasons before taking the giant leap. Before that, let’s cover the basics of Near Protocol.
NEAR Protocol is a third-generation blockchain launched in 2017 by Alexander Skidanov and Illia Polosukhin. It was initially a machine learning platform. Now it’s a network that rewards computers for exploiting the platform. It was created to speed up transaction rates, increase throughput, and facilitate compatibility.
It is a base layer on which decentralized applications can be built. Compared to other blockchains, it is durable, interoperable, secure, cost-effective, user-friendly and pragmatic for users. The NEAR protocol aims to revolutionize systems and impact the way users use the web in general.
1. The NEAR protocol is accessible and usable
NEAR Protocol is a decentralized, community-driven platform that supports the development and operation of dApps. It is a decentralized database and serverless computing platform. It has made it easy for engineers and innovators to use it to create various products while serving a pool of users. It expands the scope of Open Finance and paves the way for Web 3.0.
The NEAR protocol will enable the creation of user-friendly applications that would require little or no permission to be engaged. NEAR is based on a usability-oriented approach. This means that applications built on the network would mirror those on web platforms while ensuring security. It would be simple to integrate projects and easy to subscribe, with predictable prices and usage styles that users are familiar with.
Essentially, both users and developers will benefit from the transparency on the platform. It would be easier to create accounts with domain names understandable by all. It eliminated the need for Ethereum Name Service.
For developers, creating and deploying applications has been simplified. They can use JavaScript, Rust, and AssemblyScript SDKs. They would also have the platform’s search tool, NEAR Explorer.
2. The NEAR protocol uses fragments of its data
The NEAR protocol uses a partitioning approach that allows it to partition its data. This improves its scalability, allowing it to execute more transactions. This approach is called Nightshade. It allows the network to grow as the number of nodes increases.
Sharding allows each node to store a small subset of platform data. It divides computing work between nodes due to high network utilization. These nodes handle the data processing and add the resulting information to the main chain. This improves network security as potential points of failure are reduced as each node oversees part of the network.
Also, it would help solve the blockchain trilemma. Besides sharding, it has developed dynamic re-sharding. This adjusts the number of shards regularly and dynamically based on user demands. This increases transaction throughput and reduces transaction costs.
Unlike other blockchains that use this approach, all shards are part of the main chain. He also has Doomslug. This allows validators to take turns generating blocks once per epoch based on their stake. Creating blocks takes about a second.
3. The NEAR protocol uses an environmentally friendly consensus algorithm
Unlike pioneering blockchains, the NEAR protocol uses a specialized proof-of-stake algorithm, Threshold Proof-of-Stake. This makes it more decentralized by allowing node operators to interact without permission with the network. It eliminates the pooling power of validators and enables the ubiquitous participation of node operators. It guarantees a fair and predictable consensus.
This promotes growth as more nodes could join. It also allows developers and innovators to earn money from their projects. It assigns a fee to a contract when it is created, and the developer can withdraw it.
Unlike other proofs of stake, delegate tokens are not lost when the validator is terminated for malicious behavior; only the reward is lost.
4. The NEAR protocol has bridges
Blockchains improve their interoperability by creating links with other blockchains. The NEAR protocol has several bridges to serve this purpose. It became compatible with Ethereum Virtual Machine through the Aurora Bridge. This makes it easier for developers to move their applications to the fast, inexpensive, and scalable NEAR.
It has also partnered with Terra to connect Terra assets to the platform. Also, it has the Rainbow Bridge which supports the transfer of funds between NEAR and Ethereum. Additionally, there is the Octopus Network, a network that allows interoperability with blockchains like Bitcoin, Polkadot, Cosmos, etc. This would make it compatible with NEAR-based tokens and the inter-blockchain communication protocol.
These bridges increased their transaction throughput (721,061) in January 2022.
5. The NEAR protocol has an expanding ecosystem
Due to its futuristic features and developer community, it has seen exponential growth in its ecosystem over the past couple of months. It is currently ranked as the third fastest growing platform for developers. He plans to combine the creativity of his community with precise decisions and execution. Furthermore, he hopes to contribute to a rapid improvement of his protocol with the supervision and input of the community.
It aims to provide the platform for the birth of web 3.0. The Flux protocol, Mintbase and Paras are some of the most popular projects in the ecosystem.
Endnote
Investing in NEAR Protocol would be like buying its native token, NEAR. NEAR is used as a reward for node operators and validators. It is used to pay for transactions, run applications, and reserve storage units for applications. It is also burned as a deflationary measure. To get more NEAR, you can bet, participate in bounties, win a NEAR hackathon, manage a community, create on the network or be an active member of the community.
To date, NEAR is ranked 22, with a market capitalization of $8.5 billion. It currently costs $13.77 and peaked at $20.44 in January 2022. Of the total supply of 1 billion, 618.4 million are currently in circulation. It is currently trading on Binance, MEXC Global and Huobi Global.
If you can already imagine the world of Web 3.0, then you won’t hesitate to buy NEAR. However, the decision is yours; ultimately it would be your loss or your gain. As always, this is not financial advice. Do your research and deal wisely.
