What is NEAR Protocol (NEAR)? Complete Guide & Review About NEAR Protocol (NEAR)

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Blockchain247

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I. Introduction

1. What is NEAR Protocol?

NEAR Protocol is a layer 1 blockchain that uses sharding technology to achieve scalability. NEAR uses smart contracts and adopts the Proof of Stake (PoS) consensus mechanism to secure its network. Built by the NEAR Collective, the NEAR Protocol was co-founded by Alex Skidanov and Illia Polosukhin in 2020. The project is being developed as a community-operated cloud infrastructure for hosting decentralized applications (DApps).

The NEAR platform contains a wide range of programming tools and languages, as well as smart contracts with cross-chain functionality to help developers build DApps. The platform counts with a simplified onboarding process and features human-readable account names instead of cryptographic wallet addresses. As a PoS blockchain, NEAR was awarded the Climate Neutral Product Label in 2021 for being carbon neutral.

2. How does NEAR Protocol work?

To compete with other smart contract-enabled blockchains like Ethereum, EOS, and Polkadot, NEAR implements several features in its ecosystem to enhance its performance.​

II. Details about NEAR Protocol (NEAR) Token

1. What is NEAR Protocol (NEAR) Token?

NEAR Protocol (NEAR) is the native token of the NEAR ecosystem. It’s an ERC-20 token with a max supply of 1 billion. NEAR Protocol (NEAR) can be used for paying transaction and storage fees on the network. Also, smart contract developers can receive a portion of the transaction fees their contract generates. To keep NEAR scarce, the remaining transaction fees will be burned.

Token holders can stake on the NEAR Wallet to earn rewards too. They stake NEAR to run validating nodes for rewards that amount to 4.5% of the total NEAR supply. They can also participate in the governance of the NEAR network by voting on decisions and submitting proposals related to the platform and products.​

2. The Present Status of NEAR Protocol (NEAR) Token

While NEAR’s past has set itself up for a promising future on a technical front, its tokenomics also play a significant role in the blockchain’s growth. NEAR Protocol’s native token NEAR received significant attention in 2022, entering the list of top 20 cryptocurrencies by CoinMarketCap.

With a total supply of 1 billion NEAR, the blockchain has a fixed number of tokens to be minted in its lifetime, much like Bitcoin and unlike Ethereum. As of May 16, 2022, a total of 688.6 million NEAR, or about 69% of the entire supply, was already in circulation, with each individual NEAR token valued at $7.27 at the time of writing.

Some of the highest growth LUNA ever noted was during November 2020 to March 2021 rally when in a span of 5 months, NEAR skyrocketed by 1,315.81%, with a similar rise noted in July 2021 when the altcoin shot up by 539% in 2 months and was trading at $9.7 by September 2021.

However, the last all-time high marked by NEAR was in January 2022, when the token hit $20.69 and attempted to establish a new one in April but to no avail. Following this attempt, NEAR plummeted to a low of $3.5 within a week when the TerraUSD (UST) depegging caused the market to crash on May 9.

While apart from demand and DeFi use cases, there is no specific trigger for NEAR’s rallies, these two reasons are enough to keep up the consistent rise as that is what NEAR truly intends to be.

Available on every major cryptocurrency exchange such as Coinbase, Binance, FTX, Crypto.com, Gemini, OKX, and more.​

III. NEAR Protocol (NEAR) Token Allocation

1 billion NEAR coins will be divided in proportion as follows:​
  • Backers: 17.6%.​
  • Community Grants, Program,...: 17%.​
  • Core Contributors: 14.5%.​
  • Early Ecosystem: 13.3%.​
  • Operation Grants: 11.5%.​
  • Community Sale: 10%.​
  • Foundation Endowment: 10%.​
  • Small Backers: 6.1%.​


Near Token Distribution

1. NEAR Token Use Case

Near coins will be used for the following purposes:​
  • Pay fees for transaction processing and data storage systems.​
  • Run Node authentication, Staking To earn rewards.​
  • Participate in ecosystem management.​

2. The future of NEAR Protocol (NEAR) Token

The project officially launched mainnet in May 2020, becoming a formidable competitor of Ethereum 2.0, an upgraded version of Ethereum that has only seen the sound but has not seen the image. In the "crazy" of Defi, you can recognize the speed of processing transactions and gas charges Ethereum is a big deal for users. This could be the impetus for creating other blockchains that are more groundbreaking.

NEAR is one of the emerging names that confidently claim to be more effective and many times less expensive. In particular, at a cost 10,000 times lower than Ethereum and incredible scalability, which Ethereum is struggling with. The main concern of the project team is user experience and user needs. This is considered the guideline of NEAR when developing towards an easy-to-use and friendly platform suitable for Developer, end-user and validator.

Now blockchain technology Only recently adopted in the supply chain and cross-country payments, there is still a lot of development space in the mainstream industries that the project is aiming for.

The project is approaching many businesses to unlock new business models, not only at Gaming, DeFi, Open Finance but I am sure that the project will also contribute to the changes of the industry later, because NEAR will develop in the direction of demand and supply.

Currently, NEAR's ecosystem is gradually perfecting with the necessary pieces such as Stablecoins, AMM DEX, Oracle, Lending & Borrowing, IDO Platform and NFT Marketplace.​

Summary

Thus, we have introduced you to the project and provided detailed information about NEAR Protocol (NEAR) token. What do you think of this token? Please share your thoughts in the comment section below.​
 

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