What Is NEAR Protocol?

The NEAR Protocol is a public Layer 1 blockchain that aims to leverage a network of computers to drive a platform for developers to create and release decentralized applications (dApps).

The NEAR Protocol is a public Layer 1 blockchain that aims to create a network of computers to power a platform for developers to build and launch decentralized applications (dApps).

The protocol’s cryptocurrency is also called NEAR and is used to pay transaction and storage fees. NEAR tokens can also be staked by those involved in network consensus as transaction validators.

History of the NEAR Protocol

The founders of NEAR are Ukrainian computer scientists and mathematicians Oleksandr Skidanov and Ilya Polosukhin. They have been working on the protocol since 2017, and the NEAR core network went live in August 2020.

Polosukhin also worked on the open-source machine learning library Tensor Flow. Skidanov and Polosukhin set out to create a better Ethereum without relying on the scalability of a layer two.

How does the NEAR Protocol work?

The NEAR Protocol is a blockchain that achieves consensus via the proof of stake (PoS) mechanism with the concept of sharding being one of the core aspects of the project.

Charding is a process that aims to split the network infrastructure into multiple segments so that computers, also known as nodes (or node), can process only a portion of the transactions on the network.

NEAR functions similarly to other decentralized storage systems such as Amazon Web Services (AWS), which serve as the base layer on which applications are built. But instead of being controlled by a single entity, NEAR is managed and maintained by a distributed network of nodes.

NEAR further enhances the concept of sharding with its unique block partitioning solution called “Nightshade”, which was launched in November 2021 as Simple Nightshade. Since validators no longer have to process all incoming transactions, but only those within the shards, Nightshade enables infinite scaling.

Nightshade

In addition to being a distributed architecture, sharding allows the blockchain to scale more efficiently, enabling a higher volume of transactions per second and lower transaction fees.

Nightshade enables the NEAR protocol to maintain a single chain of data while distributing the computational processes needed to maintain that data into “shards/chunks”. These chunks are handled by nodes that process the information and add it to the underlying network.

Rainbow Bridge

The Rainbow Bridge application makes it possible for any information that is cryptographically provable in NEAR to be used in Etherium contracts and vice versa. Participants in the NEAR network can easily transfer ETH tokens between the Etherium blockchain and the NEAR one.

To transfer tokens from Ethereum to the NEAR Protocol, a user must first deposit tokens into an Ethereum smart contract. These tokens are then locked and new tokens representing the original tokens are created on the NEAR platform.

The process itself can be reversed whenever the user wishes to receive their original tokens, as the original funds are stored through the smart contract.

Aurora

Aurora is a Layer 2 scaling solution built on the NEAR protocol, designed for developers to run their decentralized applications on Ethereum on the NEAR network.

Aurora is built using Ethereum Virtual Machine (EVM) technology as well as an inter-circuit bridge that allows developers to seamlessly connect their Ethereum smart contracts and assets.

Developers can use Aurora to combine the benefits of the NEAR protocol, such as low fees and high bandwidth, with the familiarity and network of Ethereum applications.

Which are the most popular dApps on the NEAR network

How do I buy NEAR?

1. Choose a crypto exchange

There are numerous cryptocurrency exchanges and marketplaces that offer a range of services, from easy-to-use interfaces to advanced trading dashboards.

Since NEAR is a popular cryptocurrency, you will be able to buy the token on most cryptocurrency exchanges, but it is advisable to stick to a few of the more well-known exchanges such as Binance, Kraken, Coinbase, etc. Different platforms come with varying fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.

2. Create an account and confirm it

Begin by registering for an account, which is completely free on the aforementioned platforms. For enhanced security, 2FA – two-factor authentication – is also enabled. This way, only you and your device can grant access to the account.

You are then guided through a KYC process, which involves providing personal information – ID card/passport/driving license details, and proof of address (e.g. bank statement or utility bill).

After completing these steps, you are ready to buy, sell and trade NEAR Protocol (NEAR) as well as avail various services such as staking.

3. Fund your account

Once your account has been registered and verified, you need to fund the account in order to start utilizing the platform’s buying and trading services.

The main deposit options are:

Where to buy NEAR