What is NEAR Protocol
The NEAR Protocol is a public Layer 1 blockchain that aims to leverage a network of computers to drive a platform for developers to create and release decentralized applications (dApps).
The protocol’s cryptocurrency is also called NEAR and is used to pay transaction and storage fees. NEAR tokens can also be tokenized by those involved in network consensus as transaction validators.
History of the NEAR Protocol
The founders of NEAR are Ukrainian computer scientists and mathematicians Oleksandr Skidanov and Ilya Polosukhin. They have been working on the protocol since 2017, and the NEAR core network came online in August 2020.
Polosukhin has also worked on the open-source machine learning library Tensor Flow. Skidanov and Polosukhin aimed to create a better Ethereum without relying on the scalability of a second layer.
How does the NEAR Protocol work?
NEAR Protocol is a blockchain that achieves consensus through the proof of stake (PoS) mechanism with the concept of sharding being one of the core aspects of the project.
Charding is a process that aims to divide the network infrastructure into multiple segments so that computers, also known as nodes (or nodes), can process only a portion of the transactions on the network.
NEAR functions similarly to other centralized storage systems such as Amazon Web Services (AWS), which serve as the base layer on which applications are built. But instead of being managed by a single entity, NEAR is managed and maintained by a distributed network of nodes.
NEAR further refines the concept of sharding with its unique block partitioning solution named “Nightshade”, which launches in November 2021 as Simple Nightshade. Since validators no longer have to process all incoming transactions, but only those within the shards, Nightshade facilitates infinite scaling.
Nightshade
In addition to being a distributed architecture, sharding allows the blockchain to scale more efficiently while allowing for a greater amount of transactions per second and lower transaction fees.
Nightshade allows the NEAR protocol to support a single chain of data while distributing the computational processes required to maintain that data into “shards/pairs”. These chunks are handled by nodes that pass through the information and add it to the underlying network.
Rainbow Bridge
Using the Rainbow Bridge application, any information that is cryptographically provable in NEAR can be used in Etherium contracts and vice versa. Participants in the NEAR network can easily transfer ETH tokens between the Etherium blockchain and the NEAR one.
To transfer tokens from Ethereum to the NEAR Protocol, a user must first deposit tokens into an Ethereum smart contract. These tokens are then locked and new tokens representing the original tokens are created on the NEAR platform.
The process itself can be reversed whenever the user wishes to receive their original tokens, as the original funds are stored through the smart contract.
Aurora
Aurora is a Layer 2 scaling solution built on the NEAR protocol, designed for developers who can run their decentralized applications on Ethereum on the NEAR network.
Aurora is built using Ethereum Virtual Machine (EVM) technology as well as an inter-circuit bridge that allows developers to seamlessly connect their Ethereum smart contracts and assets.
Developers can leverage Aurora to take advantage of the low-fee, high-bandwidth benefits of the NEAR protocol with the familiarity and network of Ethereum applications.
Which are the most popular dApps on the NEAR network
- Paras: an NFT marketplace using decentralized storage via IPFS, with its own PARAS token. Interestingly, NEAR has its own version of CryptoPunks called NPunks
- Flux: An open predictive market protocol using FLX tokens
- Burrow: A lending protocol similar to Aave
- Ref Finance: A token exchange similar to Uniswap
How do I buy NEAR?
1. Choose a crypto exchange
There are numerous cryptocurrency exchanges and marketplaces that range from easy-to-use systems to complex dashboards for advanced traders.
Because NEAR is so popular, you’ll be able to purchase the token on most cryptocurrency exchanges, but it’s advisable to stick to a few of the more popular exchanges like Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
2. Create an account and confirm it
Start with account registration, which is completely free on the aforementioned platforms. For added security, 2FA – two-factor authentication – is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID card/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade NEAR Protocol (NEAR) as well as avail various services such as staking.
3. Fund your account
Once your account has been registered and verified, you need to fund the account to start taking advantage of the platform’s buying and trading services.
The main deposit options are:
- Credit/Debit Card
- Bank deposit
- Peer-to-peer (P2P)
Where to buy NEAR?
On Binance, the world’s largest cryptocurrency exchange, deposits are absolutely free.
