… But what is it?

NEAR Protocol is an open-source decentralized development platform designed to support and run decentralized applications (dApps). Its main goal is to solve the scalability, transaction speed, and high fee problems that often limit the utility of other blockchain networks, such as Ethereum. The creators of NEAR focused on simplicity of use, both for end users and developers. The foundation is the Proof-of-Stake consensus mechanism, which is more energy-efficient than traditional Proof-of-Work. The network uses a native token with the symbol NEAR, which has several key functions: it is used to pay for transactions and store data, participates in the staking process to secure the network, and participates in the governance of the protocol through voting. The project aims to create an environment where building and using dApps is intuitive and accessible to a wide audience, which could make it an interesting investment platform for those following the development of Web3 technology.

Learn the history of ...

The origins of NEAR Protocol date back to 2018, when Alexander Skidanov and Illia Polosukhin, with experience gained at Google and Microsoft, among others, decided to create a new generation of blockchain. Their vision was to create a platform that would overcome the limitations of existing solutions, focusing on usability and scalability. The team quickly gained recognition, obtaining significant funding from reputable venture capital funds. The early stages of development included intensive research and development work on the network architecture, including a proprietary sharding solution. The official launch of the mainnet took place in phases in 2020, marking a milestone in the development of the project. Since then, the NEAR Foundation, a non-profit organization that supports the development of the ecosystem, has been actively working to expand it, attracting developers and projects. NEAR's story is an example of the determination to create user- and developer-friendly technology, which is crucial for mass adoption. The availability of educational materials, including online training, significantly contributes to expanding knowledge about this technology.

Technological analysis

At the core of NEAR Protocol's technology is an innovative approach to scaling, known as Nightshade sharding. Unlike other sharding implementations, where each shard produces its own block, in Nightshade all shards work together to create a single block. Transactional data is broken down into smaller chunks, called "chunks," and each shard processes only a portion of those chunks. This allows transactions to be processed in parallel, significantly increasing network throughput without sacrificing security. Another key element is the Doomslug consensus mechanism, which enables fast block finalization, which translates into low transaction latency. NEAR also focuses on the simplicity of creating and using applications. Developers can write smart contracts in popular languages such as Rust and AssemblyScript - this lowers the barrier to entry. A unique feature is human-readable account names instead of long, complicated strings of characters, making it easy to interact with the web. The platform also offers the Rainbow Bridge, which enables the transfer of assets and data between NEAR and Ethereum, and Aurora, a solution that provides compatibility with the Ethereum Virtual Machine, which allows developers to easily transfer their applications from Ethereum to NEAR. These features make a training platform like NEAR attractive for people looking to develop their skills in the blockchain space.

… vs. other cryptocurrencies

When comparing NEAR Protocol to other leading smart contract platforms such as Ethereum, Solana, and Polkadot, there are some significant differences and advantages. Relative to Ethereum, NEAR offers significantly higher transaction throughput and lower fees, mainly thanks to its implementation of Nightshade sharding. While Ethereum is transitioning to Proof-of-Stake and plans to implement its own scaling solutions, NEAR has been designed with these aspects in mind from the beginning. EVM compatibility through Aurora gives NEAR an advantage by allowing projects to be easily migrated from the Ethereum ecosystem.

When confronted with Solana, which is also renowned for its high transaction speeds, NEAR stands out for its approach to decentralization and sharding architecture. Solana achieves its efficiency through its unique Proof-of-History consensus mechanism, however, its architecture is monolithic. Nightshade in NEAR aims to achieve scalability while maintaining a higher degree of decentralization of individual shards. As for Polkadot, its model is based on parachains – sovereign blockchains connected to a central Relay Chain. NEAR, on the other hand, uses sharding within one coherent first layer. The choice between these platforms often depends on the specific needs of the project and the preferences of the developers. Understanding these nuances is crucial, and online training can help you absorb them.

Several advantages of NEAR should be highlighted:

• scalability,
• low fees,
• developer-friendliness.

Analysis of the future ...

The prospects for NEAR Protocol's growth seem promising, although they are also fraught with some challenges. One of the key success factors will be the continued growth of the decentralized application ecosystem. The more worthwhile projects you choose to build on NEAR, the greater its adoption and utility. It is important to attract developers as well as end users. The Webinar Academy platform can offer courses to deepen your knowledge on the subject. NEAR's development plans include further improvements to the protocol, including dynamic resharding, which will allow for even more flexible adjustment of network bandwidth to current demand.

Interoperability is also an important aspect. The development of bridges like Rainbow Bridge and solutions like Aurora is crucial for integration with other ecosystems, especially the dominant Ethereum. The future of NEAR also depends on general cryptocurrency market trends, regulation, and competition from other Layer-1 and Layer-2 platforms. Maintaining the pace of innovation and adapting to changing market conditions will be essential. For those interested in deepening their knowledge, the Webinar Academy training platform offers educational resources covering market analysis. Investments in education and the community, such as developer grants and support programs, also play a vital role in building a strong position in the market.

NEAR Protocol is emerging as a solid project with strong technological fundamentals and a clear vision for the future. Its focus on scalability, low fees, and user-friendliness puts it in a good position to compete in the dynamic cryptocurrency market. However, like any technology in development, it faces challenges related to adoption, competition and the evolution of the entire sector. Further development of the ecosystem, technological innovation, and the ability to attract talent and capital will determine its ultimate success. Watching the progress of NEAR Protocol will certainly be interesting for all blockchain enthusiasts.