Near Protocol: everything you need to know about NEAR

What is Near Protocol?

Near Protocol is an open-source blockchain platform focused on creating a fast and scalable infrastructure for decentralized applications (dApps). NEAR aims to make it easy for developers to build and deploy dApps that can compete with their centralized counterparts in terms of speed, scalability, and cost-effectiveness. NEAR Protocol utilizes advanced technologies to facilitate fast transactions, making it suitable for both small and large dApps.

How does Near Protocol work?

Near Protocol provides developers with a straightforward, fast, and cost-effective way to build dApps. NEAR employs a Proof of Stake consensus mechanism and innovative sharding technology to achieve high throughput and fast confirmation times. Furthermore, NEAR offers programmers a development environment similar to the web, enabling them to build and deploy dApps easily, regardless of their programming language. Other unique features include smart contracts' ability to communicate with applications outside the blockchain and the ability to create tokens tailored for specific purposes.

The NEAR token

Near Protocol has its own native cryptocurrency, the NEAR token. This token is used as fuel for transactions on the network and as a reward for validators and developers. The token has a maximum supply of 1 billion and is distributed through a combination of token sales, mining, and rewards for validators. NEAR holders can also participate in the network's governance by voting on proposals to improve the network. Additionally, developers can use NEAR to build dApps on the network and accept it as payment for their services.

The Technology Behind NEAR

The technology behind NEAR utilizes a sharded blockchain architecture designed for scalability and optimal performance. The blockchain consists of multiple parallel chains, each known as a shard, which manages a portion of the network's processing load. Near Protocol employs a Proof of Stake consensus protocol called Nightshade, which increases transaction speed. Furthermore, the mechanism provides security against 51% attacks, where malicious actors attempt to gain a majority of the network's control and manipulate transactions.

Near Protocol also uses a programming language called Rust, optimized for blockchain applications. Through smart contracts, developers can build various types of dApps on the network.

The Near Protocol ecosystem

The NEAR Protocol ecosystem comprises various components working together to provide a scalable and secure blockchain architecture. The primary component is the NEAR protocol itself, designed to optimize blockchain performance and overcome limitations of previous blockchain architectures. The protocol uses innovative sharding technology to distribute the network's load across multiple parallel chains, increasing processing speed and scalability.

Additionally, the NEAR ecosystem offers various tools and services for developers, including the Near Software Development Kit (SDK) and Near Studio, an online development environment. These tools make it easy for developers to build dApps on the NEAR protocol.

There are also several native dApps on the protocol, such as Mintbase, a platform for creating and trading non-fungible tokens (NFTs), and Paras, an NFT marketplace. Moreover, the NEAR ecosystem supports interoperability with other blockchains, allowing users to easily communicate and conduct transactions between different blockchain networks.

Benefits of Near Protocol

What are the advantages of Near Protocol?

• Open-source, programmable blockchain
• Interoperability with other blockchains
• Low transaction costs
• High efficiency thanks to sharding technology
• Well-developed security protocols

Drawbacks of Near Protocol

What are the disadvantages of Near Protocol that investors should consider?

• Direct competition from major players like Ethereum
• Relatively low global adoption
• Relatively high degree of centralization compared to other blockchains

Who is the founder of Near Protocol?

The founders of Near Protocol are Illia Polosukhin and Alexander Skidanov. They started NEAR.ai in early 2017 to explore program synthesis: the field of automating programs from a human specification. This eventually led the team to programmable smart contract platforms and crypto payments.

Polosukhin and Skidanov assembled a team of engineers and formally began building NEAR Protocol in August 2018. The foundational vision for the NEAR platform was to provide developers with a straightforward path to building dApps that could scale to mass adoption.

Price forecasts

In 2026 experts expect a minimal price of €16.25 and a minimal price of €53.95 in 2031.