Founded in 2017, Near Protocol has become one of the most popular Layer-1 solutions today. With its distinctive architecture that especially enables developers to find fast solutions, this article provides comprehensive information about Near Protocol, including what NEAR is, how it works, and how to trade it on BtcTurk | Global.
TABLE OF CONTENTS
How Was Near Protocol (NEAR) Founded?
Ilya Polosukhin and Alexander Skidanov began working on a project called Near.ai in 2017 with the goal of building a business model focused on machine learning. They wanted to use blockchain technology for machine learning, but after realizing that existing blockchains lacked the necessary infrastructure, they shifted the project’s focus to develop that infrastructure. In 2020, the project was rebranded as Near Protocol and evolved into a standalone Layer-1 solution, reaching the version we know today.
Near Protocol Features
Near Protocol was established to advance blockchain technology, with a particular focus on making it easy for developers to build applications and launch projects on the Near blockchain. Its goal is to simplify and accelerate this process.
Sharding, a feature targeted by many blockchain projects, is already actively implemented in Near Protocol. The Nightshade sharding mechanism enables each validator on the Near blockchain to store only a portion of the data they would normally hold, reducing their workload. This approach not only enhances the blockchain’s security by distributing it more broadly but also lowers costs, making the network faster and more affordable.
As a result, Near Protocol can process up to 100,000 transactions per second and confirm transactions in under one second.
Near Protocol Consensus Mechanism
Near Protocol uses a Delegated Proof of Stake (DPoS) consensus mechanism. NEAR token holders can delegate their tokens to a chosen delegate, thereby transferring their voting rights.
Those who wish to become delegates on Near Protocol must create their own staking pools. Delegates have the freedom to set their commission rates and determine how much revenue they distribute to their delegators. This system fosters competition among delegates under free market conditions, aiming to create a structure that benefits users.
NEAR Token
30% of the transaction fees collected on the Near blockchain are distributed as rewards to applications running on Near. The remaining 70% is burned, effectively removing it from circulation.
The NEAR token has an inflationary structure, with the token supply increasing by 5% annually. Of this increase, 4.5% is distributed as rewards to validators on the Near blockchain, while the remaining 0.5% is allocated to the treasury for the development of the Near Protocol.
Since 70% of the transaction fees on the Near blockchain are burned, when transaction volume and fees increase, it is possible for token burns to exceed the 5% inflation rate. Therefore, as the Near blockchain gains popularity, there is potential for the NEAR token to transition into a deflationary model.
Layer 2 Solutions
There are Layer 2 initiatives on the Near blockchain. The most popular Layer 2 solution, Aurora, acts as a bridge between the Near blockchain and the Ethereum blockchain, aiming to create an EVM-compatible Near blockchain. This allows Ethereum-based applications to run seamlessly on Near Protocol and benefit from the advantages of the Near blockchain.
Additionally, there is a bridge solution called Rainbow that facilitates asset transfers between Near and Ethereum.
Take a Closer Look
You can visit Near Protocol’s website by clicking here.
For detailed information, you can access Near Protocol’s whitepaper by clicking here.
How to Store NEAR?
You can store and manage NEAR cryptocurrency using browsers, desktop, mobile, and hardware wallets that support the Near blockchain.
How to Buy and Sell NEAR?
You can buy and sell Near Protocol (NEAR) with Tether (USDT) using the BtcTurk | Global website or mobile app. If you’re not yet a member, you can easily register on our website or app and buy Near Protocol (NEAR) by depositing cryptocurrency.
