Near Protocol is an efficient, fast and cross-chain compatible decentralized development platform for decentralized applications. NEAR Coin is the native token of Near Protocol.
What is Near Protocol?
Near Protocol, one of Ethereum’s strong competitors, is designed to make decentralized applications available on the network. It is a decentralized development platform. Near Protocol is a smart contract-enabled blockchain. It aims to create a developer and user-friendly platform.
Created in 2018, Near Protocol is co-founded by former Microsoft employee Alexander Skidanov and developer Ilya Polosukhin. Afterwards, with the participation of many developers, Near Protocol has grown to about 50 people. The project aimed to enable applications to be used on the web. The project has four different usage scenarios. These are applications, users, validators, and delegates.
Near Protocol has been described as “a complex technology with a simple purpose”. It aims to enable developers and entrepreneurs to easily and sustainably create applications that secure high-value assets while making them available to consumers.
What is NEAR Coin, What Is It Used For?
Near Protocol’s native token is NEAR Coin. It is used in processes such as recording transactions and data retention fees. NEAR Coin makes it possible to run transaction verification nodes by staking. Investors can earn passive income at the end of a certain maturity thanks to the staking process. Unlike other cryptocurrencies, NEAR Coin charges lower transaction fees. For this reason, it is preferred by users. It is easy to use for newcomers to the blockchain and cryptocurrency ecosystem.
NEAR Coin holders, who can also participate in governance voting, are rewarded with NEAR Coins when they use the NEAR coin application and perform staking transactions. Transaction validators receive NEAR Coin rewards for their services, corresponding to 4.5% of the total NEAR supply on an annual basis.
In addition, developers creating smart contracts can receive a portion of the transaction fees their contracts generate. NEAR Coin has established a protocol treasury that takes 0.5% of the total annual supply of NEAR to reinvest in the development of the ecosystem. The NEAR Protocol can support “Wrapped” tokens from other chains in addition to NFTs. In addition, NEAR Coin has enabled users to transfer their ERC-20 based tokens from Ethereum to NEAR by establishing a bridge with Ethereum.
How Does the Near Protocol Work?
The popularity of decentralized applications has also increased the scaling problem in the cryptocurrency ecosystem. Near Protocol aimed to solve this rapidly increasing problem with the use of Ethereum. Thanks to Near Protocol’s solution to the scalability problem applying a fragmentation mechanism, transaction capacity on the blockchain is increased.
In this protocol, validators perform faster transactions thanks to fragmented block data. Fragmented blocks in the Near Protocol differ from similar protocols as they contain some of the next block information. Using a smart contract-based account model, Near makes it possible for users to work without having to be active to sign transactions.
According to the developers, Near Protocol can process 100,000 transactions per second. It promises to create a block every second. It also aimed to establish the Near Protocol, accessible to anyone with or without advanced software knowledge. In short, users who do not have advanced software knowledge are provided with access to decentralized applications developed on the Near protocol. In addition, Near Protocol offers pre-made software packages for developers to bring their projects such as NFT and smart contract to life in a short time.
