What is Near (NEAR)?

Near protocol is a platform on which developers can launch decentralised applications (dApps) and smart contracts, almost like a decentralised version of Amazon Web Services. Its website promises “more transparent and resilient” online experiences that are “shaped and controlled by their creators and users”. 

Anyone that helps to develop or sustain the network through transaction processing, security, and smart contract development is rewarded for their contributions with their native cryptocurrency, NEAR. 

How is NEAR protocol different to competitors, like Ethereum?

Sharding

Sharding is used by blockchains to improve performance and increase the number of transactions it can process. It is done by breaking up the blockchain into smaller, more manageable sets called shards. Nodes then process the data in individual shards to verify transactions on the network, rather than each node being responsible for every transaction across the entire network. It effectively allows for parallel processing, which significantly increases the network’s transaction capacity. 

Near uses a specific method of sharding called Nightshade to make its network faster and more secure. Nightshade divides the network into shards, with each shard having its own group of validators. These validators are like security guards who make sure transactions are valid. To communicate between these shards, Near uses a system called “fisherman” to double-check transactions and keep everything running smoothly. By doing this, Near can handle lots of transactions quickly without sacrificing safety or fairness across the entire network.

Thresholded Proof of Stake 

Near’s Thresholded Proof of Stake (TPoS) consensus mechanism allows validators to join the network based on the amount of cryptocurrency they hold. Validators are required to stake a certain amount of NEAR to participate, ensuring their commitment to the network’s security and integrity. 

This approach incentives wider participation while maintaining the network’s security standards, as validators with larger stakes have a greater influence on consensus decision-making. 

Aurora Virtual Machine 

Near uses a version of the Ethereum Virtual Machine (EVM), known as Aurora. The EVM is a set of tools that developers use to build and execute smart contracts on the Ethereum blockchain. This integration allows developers to migrate their Ethereum-based decentralised applications (dApps) onto the Near network. 

What is NEAR’s cryptocurrency?

The native cryptocurrency of Near Protocol is NEAR. The cryptocurrency powers its governance, security, and economic systems. NEAR incentivises active participation, secures the network, and allows users to interact with and contribute to the broader NEAR ecosystem. 

NEAR is available to buy and sell on the Luno app and website. 

Useful tools

NEAR website
NEAR blog
NEAR on X 

*Investing in cryptocurrency may result in the loss of capital as the value can fluctuate.