What is NEAR Protocol?
NEAR Protocol is a purpose-built Layer-1 blockchain, highly scalable and friendly to developers building decentralized apps (dApps). It is meant to unlock the massive power not actualized in other blockchain networks through high throughput, low-cost transactions, and a seamless user experience. The native cryptocurrency of NEAR will be used to pay for transaction fees, staking, and governance within its network.
What Problem Does NEAR Protocol Solve?
NEAR Protocol solves several crucial problems in the blockchain space:
Scalability: NEAR has been designed utilizing Nightshade sharding technology, enabling the network to run well over 100,000 transactions every second—unlike Ethereum and Solana. It simply means the chain can be used without getting congested for a massive amount of activity.
Usability: NEAR is targeting the usability of blockchain. It offers human-readable account names, resulting in user and developer experience much less convoluted than that of their traditional cryptographic addresses.
Cost: Because it provides for low transaction fees, NEAR offers affordability to its users and lowers the cost of blockchain transactions for developers.
Why Does the Crypto Market Need NEAR Protocol?
The advanced nature of the NEAR Protocol positively impacts the crypto market in some ways:
Better dApp Development: The NEAR Protocol offers a compelling platform for dApp building. It lures developers with a platform that's both easy to use and offers very high performance.
Interoperability: NEAR provides a seamless basis for interaction between every other blockchain, creating closer connections and an overall more versatile crypto ecosystem.
Sustainable Growth: NEAR is encouraging the sustainable growth of broader blockchain technology by affording low-cost solutions in scale.
History of NEAR Protocol
NEAR Protocol was established in 2018 by Illia Polosukhin and Alexander Skidanov. Both founders have made programming and engineering their primary focus of study. The project has gained some real traction, with a $21.6 million raise in July 2019, followed by another $30 million in early May of this year. Launched in April 2020, the mainnet from NEAR has potential innovations that have attracted a good deal of attention to its scalability and usability features.
Who Created NEAR Protocol?
Illia Polosukhin and Alexander Skidanov co-founded NEAR Protocol. Illia Polosukhin was a former Google software engineer and one of the contributors to the machine-learning framework known as TensorFlow, where Alexander Skidanov used to work as an engineer for Microsoft and MemSQL, previously focusing on highly scalable systems. All of that experience is combined in the making of NEAR.
What Technology Does NEAR Protocol Use and How Does it Work?
NEAR Protocol utilizes several highly advanced technologies:
Nightshade Sharding: This approach divides the network into small parts called shards, each with the capacity to process its transfers and smart contracts. That allows NEAR to scale horizontally and handle a higher volume of transactions.
Doomslug Consensus Mechanism: NEAR has an advanced consensus mechanism allowing supersonic finality, confirming operations in a split second.
Rainbow Bridge: It interoperates NEAR with Ethereum, making it possible to transfer value and data between the chains.
What Affects NEAR Protocol Price?
Some of the factors that affect the price of NEAR include:
Market Sentiment: News and developments related to the general market trend in digital assets, which might have a powerful impact on the price of NEAR.
Technological Development: Advancements, partnerships, and more adoption of the NEAR protocol are specific ways in which demand for the token increases.
Regulatory Environment: Changes in regulatory policies and legal considerations impact investor confidence and market dynamics.
How Many Tokens of NEAR Protocol are in Circulation?
In all, there are over 1 billion NEAR tokens out. The entire supply of the NEAR token is dynamic, including new tokens introduced through staking rewards and other network incentives.
What is the Maximum Supply of NEAR Protocol?
NEAR Protocol does not have a fixed maximum supply. Its inflationary model is such that the total supply of the NEAR token can increase over time to incentivize participation and security on the network.
What is NEAR Protocol Utility?
NEAR is used in many ways in the NEAR ecosystem:
- Transaction Fees: NEAR is spent to pay network transaction fees.
- Staking: Holders of NEAR tokens can stake their tokens in securing the network and earn some rewards.
- Governance: NEAR tokens allow power over governance issues, making decisions that influence the future of the network.
Tokenomics of NEAR Protocol
- Inflationary Model: New NEAR tokens are issued instead of mining rewards through an inflationary model adopted to recompense participants and encourage network security.
- Staking Rewards: Holders of NEAR can receive staking rewards when they participate in the consensus mechanism on the network.
- Token Distribution: NEAR tokens were initially distributed through private funding rounds and sales, including allocations to the NEAR Foundation, development team, and specific early investors.
What is the All-Time High and All-Time Low for NEAR Protocol?
NEAR reached its all-time high of around $20.42 in January 2022 due to increased adoption and the general rally in the cryptocurrency markets. Meanwhile, its all-time low was about $0.53 in November 2020, right after being launched to the main net.
Where to Buy NEAR Protocol?
NEAR can be found on several major crypto exchanges, including:
- Binance
- Coinbase
- Kraken
- Huobi
- Bitfinex
All these exchanges have NEAR trading pairs with a range of fiat currencies (USD, EUR) and other cryptocurrencies (BTC, ETH).
Who Invested in NEAR Protocol at an Early Stage?
Investments came early to NEAR Protocol—from VC and institutional investors to individual crypto enthusiasts from well-known venture capital firms such as Andreessen Horowitz, Pantera Capital, and Electric Capital. NEAR's vision and development were supported by raising capital through multiple funding rounds, with notable investors like Andreessen Horowitz, Pantera Capital, and Electric Capital.
####What Are the Revenue Streams of NEAR Protocol?
- Transaction Fees: The fee accumulating out of the volume of transactions covered and processed inside the NEAR network.
- Staking Rewards: The network pays NEAR holders for staking their tokens to support the network.
- Commercial Partnerships: Revenue from the commercial partnerships of other blockchain projects and enterprises building with the NEAR Network.
The goal of NEAR Protocol is to solve problems related to scalability and usability by providing a ground on which solid, secure, decentralized applications can be built to drive future innovations in the space.
