NEAR Protocol

The NEAR protocol is a Layer-1 blockchain used to help develop decentralized apps (dApps). Layer-1 chains such as this one work independently of other chains. Near Protocol’s white paper describes its goal as allowing “developers and entrepreneurs to easily and sustainably build applications which secure high value assets like money and identity.”

Not feeding off other chains translates into faster transactions and simpler onboarding of new users for NEAR.

The NEAR protocol can also be used to develop dApps. The protocol’s designed simplifies the development of new technology and makes the process more efficient. Hundreds of unique projects are already creating dApps on NEAR.

It supports some of the most popular programming languages including JavaScript.

The NEAR coin is the native token for the Near network. It serves as a mode of payment for processing transactions and storing data. It is also used to run a validating node as part of the network by participating in the staking process.

The token also finds use in governance processes. That means it gives holders the right to determine how network resources are allocated and where its future technical direction will go. The NEAR token thus enables the coordination of all participants on the network.

Finally, NEAR is also used as part of new behaviors among the apps that are built on top of this network.

The NEAR protocol was co-founded by Alexander Skidanov and Illia Polosukhin. The former began his career in 2009 at Microsoft. Polosukhin, on the other hand, has over 10 years of industry experience in technology, three of which were at Google. During his time there, he made significant contributions to developing the core Google search code.

Here are some of the ways in which you can use the NEAR protocol coin:

• Payment of transaction fees: All transactions which occur on the NEAR blockchain must be paid for using NEAR. Due to the Proof-of-Stake (PoS) nature of the transaction validation mechanism, these transaction fees are often very low—lower than other chains like Bitcoin.
• Staking: PoS ecosystems, by design, are equipped to stake NEAR coins on the chain. This helps users earn indirect NEAR rewards over the short and long term.
• Getting the chance to act as a validator: To become a validator on the network, you will need to stake NEAR coins.
• dApps: The NEAR token can also be leveraged in a number of ways within the decentralized apps the protocol is used to create.

Pros

• The NEAR protocol employs advanced sharding technologies. These technologies are used to scale its network infinitely. This, however, cannot be said for the average blockchain.
• NEAR is completely open-source and decentralized.
• The NEAR blockchain is, in principle, similar to the “cloud-based” infrastructure that software developers currently already use to develop applications. Only in this case, however, the cloud is no longer controlled by a single company running a large data centre.

Cons

• As much as 35% of the token supply is currently held by project insiders, which is compounded by partial on-chain governance. Eventual centralization, hence, is still a point of concern.

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