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Protocol is a Layer 1 blockchain platform designed to simplify the creation and deployment of fast, cheap, decentralized applications (dapps). It competes with Ethereum, Solana, and other Layer 1 blockchains. The platform’s core technical feature is an approach to sharding called “Nightshade,” which the developers claim will allow the network to process transactions quickly and cheaply.
Establishment and Development
The NEAR protocol was founded in 2018 in San Francisco by computer scientists Alexander Skidanov and Illia Polosukhin, at a time when Ethereum’s congestion and scalability problems were becoming more prominent. Skidanov previously worked as head of engineering at MemSQL, and Polushukhinin worked at Google. In July 2019, the team Secured It raised $12.1 million in Series A funding from notable investors including Pantera, Multicoin, ACapital, Coinbase Ventures, and Ripple’s Xpring.
In early 2020, NEAR additionally $21.6 million In a token sale led by Andreessen Horowitz. Also Released It launched its mainnet in 2020, initially in restricted mode but undergoing testing and security checks. In October 2020, it transitioned to community governance, allowing validators to run the network without central control. NEAR’s Ethereum bridge, Rainbow Bridge, was launched in March 2021.
In April 2021, NEAR introduced Phase 1 sharding to distribute network load across multiple shards, enhancing scalability. In late 2021, Aurora, an Ethereum Virtual Machine (EVM) built on NEAR, was released, providing Ethereum compatibility and allowing developers to run Ethereum dapps on NEAR.
In April 2023, the NEAR Horizon Web3 Accelerator Program was launched, designed to support startups and projects within the NEAR ecosystem.
How does NEAR work?
NEAR uses a proof-of-stake consensus mechanism to ensure energy-efficient and secure transactions. The NEAR token is the protocol’s native cryptocurrency and is used to participate in network governance, secure the network, and pay transaction fees similar to Ether and Solana.
NEAR Protocol Sharding The mechanism, Nightshade, improves the scalability and performance of blockchains. Sharding works by dividing the network into smaller, more manageable segments called shards. Each shard processes a portion of the network’s transactions and smart contracts in parallel, distributing the computing load and improving the overall efficiency of the network.
Nightshade takes this concept further by implementing a unique sharding approach where each shard creates a portion of the next block, called a “chunk.” These chunks are then aggregated into a single block, ensuring that the network remains unified. This approach allows NEAR to process far more transactions per second than traditional non-sharded blockchains.
NEAR Protocol’s User and Developer-Friendly Approach
NEAR Protocol aims to provide users with a user-friendly approach to blockchain. One way is to provide human-readable accountAllows interaction using names instead of complex wallet addresses. Web-based wallets allow account management directly through the web interface, simplifying access and eliminating the need to download additional software. NEAR’s access key system simplifies account permissions, allowing users to efficiently manage their interactions with dapps and smart contracts.
For developers, NEAR provides extensive documentation and examples to facilitate the onboarding process of building dapps and smart contracts on the blockchain. To lower the barrier to entry and encourage innovation, NEAR provides these resources and hosts regular office hours through NEAR DevRel, where developers can seek guidance and support throughout their development.
As well as, NEAR provides incentives to developers by allocating 30% of the gas fee.Encourage active participation and reward contributions to the ecosystem.
Disclaimer: This article was created with the help of OpenAI’s ChatGPT 3.5/4 and has been reviewed and edited by our editorial team.
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