NEAR Protocol is a blockchain capable of running smart contracts and was launched in 2020. We all know that blockchains capable of running smart contracts aren’t anything new. Since 2015 and the launch of the Ethereum mainnet, several similar platforms have started with the same purpose.
The demand for decentralized applications or dApps is increasing. The need for platforms capable of creating the necessary infrastructure to develop and launch decentralized applications has increased too. NEAR Protocol, known as NEAR, is one of the latest smart contract capable blockchains that aims to solve the problems in previous networks. Interoperability and scalability are the main cores of the NEAR platform.
Before investing in this cryptocurrency, please read this article to learn everything about it. The NEAR network overcomes the limitation of the previous smart contract blockchain capable like Ethereum. And we all know that Ethereum is one of the best cryptocurrencies to invest in after Bitcoin. So it might be a good idea to invest in a network that is going to solve some of the Ethereum issues.
What is NEAR Protocol?
NEAR is a decentralized platform that aims to provide an ecosystem to create decentralized applications by overcoming some of the limitations of the previous network, such as Ethereum. Networks such as Ethereum suffer from low throughput, low speed, and poor interoperability.
By using a developer-friendly proof-of-stake blockchain, NEAR can increase scalability and reduce costs for developers. NEAR network uses a new type of consensus mechanism known as Doomslug, and it is based on the concept of sharding.
The NEAR Collective, a worldwide community of researchers, developers, and thinkers, created this network. NEAR is an open-source platform, and anyone can join the club and contribute to its development.
How Does Near Protocol Work?
Near Protocol uses sharding to optimize performance. We have seen the same idea in Polkadot. However, the main difference between this network and Polkadot is that all shards in the NEAR network can be viewed as a single blockchain.
Like Ethereum, Cardano, and TRON, NEAR is a base-layer blockchain. The NEAR network uses NEAR’s Rainbow Bridge for interoperability with Ethereum. But how is NEAR doing that?
The NEAR network uses a new technology called Nightshade. This technology solves the problem, offers scalability by splitting the network’s infrastructure into several segments. In this case, computers or better known as nodes, are just responsible for a fraction of the network transactions—a number of validators process transactions in multiple shards of chains. By doing so, the overall transaction carrying capacity of the blockchain increase.
NEAR Protocol is similar to Amazon Web Services (AWS) in that it serves as the base layer for building applications. However, instead of being run by a single entity, NEAR is maintained by a distributed network of computers. Developers do not need to create their infrastructure to create a decentralized application.
Doomslug is a new consciousness mechanism introduced by NEAR Protocol. This consensus mechanism increases efficiency and ensures blocks are verified within seconds. Developers take turns to produce blocks in this network rather than competing directly based on the amount of token they staked.
Near Protocol introduced an application called the Rainbow Bridge that allows users to transfer ETH tokens back and forth between NEAR and Ethereum. A user must deposit tokens in an Ethereum smart contract to do so. Then the ETH tokens will be locked, and new tokens Whitby created NEAR Protocol network.
Aurora is a scaling solution created on NEAR to allow developers to launch their Ethereum decentralized application on NEAR. In this case, developers can use the low fee and high throughput of the NEAR Protocol and the network of applications of Ethereum.
There are several wallets on the market, but none of them are NEAR compatible. NEAR is a new cryptocurrency, and the only option you have to store your asset safely is to Trust Wallet and Math Wallet. Suppose you have a problem finding the right wallet, in that case, you should consult Bitunivex. because it is not just an exchange but a wallet provider too.