What is NEAR Protocol and Coin?
NEAR Protocol is a layer-1 blockchain that was designed as a community-run cloud computing platform and that eliminates some of the limitations that have been bogging competing blockchains, such as low transaction speeds, low throughput and poor interoperability. This provides the ideal environment for DApps and creates a developer and user-friendly platform. For instance, NEAR uses human-readable account names, unlike the cryptographic wallet addresses common to Ethereum. NEAR also introduces unique solutions to scaling problems and has its own consensus mechanism called “Doomslug.”
Currently, NEAR is one of the top 30 cryptocurrencies by market cap, primarily because of its strong transaction speeds, smart contract platform, and unique technology. While the future of NEAR Protocol is still unknown, the underlying cryptocurrency is poised for growth. In addition, the project has received several funding rounds and has an expanded ecosystem. As with any new cryptocurrency project, the future of NEAR lies in adoption rates. To make a decision, it is necessary to understand the market and its potential.
While many cryptocurrencies operate with a single cryptocurrency, NEAR is a unique technology that employs a DPOS system. To create a block, users stake NEAR tokens and elect delegators. Validators then vote for the delegator who has the highest number of votes. The delegator who receives the most votes processes the block. The staked tokens are distributed between delegators and validators, and the larger the stake, the higher the reward.
The NEAR Protocol, as a Layer 1 blockchain, is designed to compete with Ethereum and other similar protocols. To operate, it uses a network that utilizes the NEAR token, which is used to settle transaction costs and maintain the network. Token holders stake their NEAR tokens as a way to participate in consensus, and they are distributed to other users who have contributed to the protocol’s development. In addition to its decentralized architecture, NEAR uses a proof-of-stake algorithm called sharding. Using a network of shards, NEAR is able to scale at an impressive rate, with 100,000 transactions per second processed.
As of April 22, 2020, the NEAR Protocol has launched its mainnet. One billion NEAR tokens were created at genesis. Five percent of that additional supply will be created annually to support the network and issue epoch rewards. NEAR was founded by Erik Trautman, a successful entrepreneur and founder of Viking Education. He is joined by Illia Polosukhin, a developer with more than ten years of experience in the industry. The team also includes ICPC gold medalists Alexander Skidanov and a former director of memSQL.
The NEAR Protocol was created by Alexander Skidanov and Illia Polosukhin, both of whom were previously employed at Microsoft and Google. The NEAR protocol aims to create a permission-less, open web by utilizing code, users, and data. The NEAR crypto token is the native token of the NEAR ecosystem. The NEAR Protocol has a roadmap of over five years, and its launch is planned for April 2020. The protocol will become community-operated in September 2020.
NEAR Protocol is a layer 1 blockchain that uses sharding technology, smart contracts, and a Proof-of-Stake consensus mechanism. It was launched as an alternative to Ethereum in 2020, but with a focus on developer friendliness. NEAR’s native token, NEAR, is used to store data on the platform and to pay transaction fees. NEAR tokens can be staked to become a transaction validator, contributing to network consensus.