Everything You Need to Know about NEAR Blockchain

With a host of unique features for both users and developers, NEAR is changing the game for decentralized applications.

NEAR Protocol is a Layer 1 blockchain network that aims to provide a high-performance platform for developers to build decentralized applications (dApps). As a Layer 1 network, it competes with other blockchain networks such as Ethereum, the current leader in the space. NEAR Protocol aims to improve upon Ethereum by offering faster and cheaper transactions, even as transaction volumes grow.

NEAR Protocol is fast. Really fast. It can process around 100,000 transactions per second (TPS), a significant improvement over Ethereum, which currently averages double-digit TPS. Even Ethereum’s largest rival, Solana, averages less than 3,000 TPS.

Aside from its speed, NEAR offers unique features such as scalability and a wide range of smart contract capabilities, making it a great option for dApps that require a high throughput of transactions, and a great option for users looking for faster alternatives to Ethereum.

While NEAR is much younger than more prominent blockchains like Solana and Ethereum, its technical advantages for developers and unique features for users are already shaping the future of decentralization. Each month, more dApps are being built on NEAR, providing users with a variety of utilities, all with lightning-fast transaction times at a fraction of the cost of other blockchains.

With all of these advantages, NEAR experienced significant growth in 2022, and is likely to continue its upward trend over the next few years.

Source: NEAR Blog

One of the key features of NEAR Protocol is its use of “sharding” technology called Nightshade, which is designed to enhance the speed and capacity of transactions on the blockchain. Sharding works by dividing the blockchain into smaller sub-chains, each with its own set of validators.

These sub-chains are regularly connected to each other, allowing the network to handle a larger number of transactions. This allows NEAR Protocol to achieve scalability by breaking up the network into smaller, more manageable clusters.

Aurora is a Layer 2 scaling solution built on the NEAR Protocol that allows developers to launch Ethereum-based decentralized applications on the NEAR network. Aurora is designed to be familiar and easy for Ethereum developers to utilize, as it is built using the Ethereum Virtual Machine (EVM), the same coding technology used in Ethereum. Additionally, Aurora includes a cross-chain bridge, which enables developers to easily link their Ethereum smart contracts and assets to the NEAR network.

With Aurora, developers can take advantage of the low transaction fees and high throughput capabilities of NEAR Protocol, while still being able to work within the familiar Ethereum ecosystem.

NEAR Protocol has a built-in tool called Rainbow Bridge, which allows for the seamless transfer of Ethereum tokens between the Ethereum, Aurora, and NEAR blockchains. To move tokens from Ethereum to NEAR, a user would deposit them in an Ethereum smart contract. These deposited tokens are then locked, and new tokens representing the original ones are created on the NEAR platform. As the original funds are securely stored in the smart contract, the process can be easily reversed when the user wants to retrieve their original tokens from NEAR. This feature allows for easy and secure transfer of tokens between blockchains, making it more convenient for users to access the features and benefits of each network.

In addition to these, there are a number of unique dApps built on NEAR, including DEXs like BTSE, NFT marketplaces such as Paras, and play-to-earn games like Zomland.

The protocol offers a number of tools and resources to help developers build and deploy their dApps, including a developer portal, tutorials, and a community forum. The platform also provides a robust set of smart contract capabilities, allowing developers to create and deploy their own custom contract logic.
Additionally, NEAR has a built-in governance mechanism, allowing users to vote on changes to the network, such as changes to the protocol or the addition of new features. This allows for a decentralized, community-driven approach to network management.

To start using dApps built on the NEAR network, you can create a NEAR wallet here.

The NEAR token serves multiple purposes on the NEAR blockchain network. First, it is used to pay transaction fees and as collateral for data storage on the blockchain. Additionally, NEAR tokens are used to reward various stakeholders on the network, such as transaction validators and smart contract developers.

Validators receive a NEAR token reward every epoch that is equivalent to 4.5% of the total NEAR supply on an annual basis. Developers, on the other hand, receive a portion of the transaction fees generated by their contracts, with the remaining going towards burning NEAR tokens, which reduces their supply.

Furthermore, NEAR has established a protocol treasury that receives 0.5% of the total NEAR supply annually, which is then used to reinvest in the development of the ecosystem.

NEAR Protocol supports not only its native token but also other tokens that are “wrapped” from other chains, as well as non-fungible tokens (NFTs). With Rainbow Bridge, multiple tokens, including the NEAR token, can be bridged across the Ethereum, NEAR, and Aurora blockchains.

Overall, NEAR offers a number of benefits for users, including fast transaction speeds, scalability, and a wide range of developer tools and resources, and for developers looking to build and scale dApps. With its unique consensus mechanism and built-in governance mechanism, NEAR is well-suited for a wide range of dApp use cases and provides a secure and efficient platform for developers to build and deploy their own decentralized applications.
NEAR tokens can be bought and sold using BTSE’s exchange and BTSE’s DEX for the NEAR network.