What Is Near Protocol (NEAR) How It Works & Where To Buy It?

Near Protocol is a blockchain that is catered to decentralized applications, and has smart contract functionality and enhanced speed and security. The Near platform is a competitor to Ethereum and operates using a proof of stake consensus mechanism.

NEAR tokens power the network and are used to perform various actions within the Near ecosystem. The network’s capacity makes it an appealing alternative to traditional blockchains because it’s efficient, scalable, and secure – with nominal transaction fees.

NEAR token is currently the 20th largest cryptocurrency in the world by market capitalization.

 

How Near Protocol (NEAR) Works

The Near protocol is an innovative blockchain and perfectly equipped decentralized development platform – it addresses the problems commonly found in traditional blockchains.

Near incorporates sharding technology to make the processes more efficient, scalable, and affordable when processing transactions. The architecture of the blockchain is what separates the Near blockchain from other blockchains like Ethereum.

Smart contracts streamline the process of deploying blockchain applications, dispersing network resources efficiently and essentially streamlining necessary actions on the network.

The Near foundation envisioned a network that would be superior to existing blockchains, identifying the need to transition the standard proof of work consensus process, to a proof of stake consensus algorithm. Essentially, nodes join to help bring added security to the network when facilitating transactions.

Near token holders can stake their tokens to become nodes, and get rewarded for their participation in the network. Network nodes are incentivized by the POS system, and therefore continuously uphold the security, transparency, and integrity of the network.

 

What Is Near Protocol (NEAR) Used For?

Near is predominantly utilized for its inexpensive, fast, and secure network. Developers can enjoy the benefits of security and easy decentralized application deployment on the Near network.

Near is capable of processing a massive 100,000 transactions per second which is unrivaled by most blockchains. The Near blockchain is currently one of the sought-after blockchains in recent months and has garnered nearly 1,000,000 daily transactions in April 2022.

The increase in the network’s transactions is indicative of consumers opting for more affordable and secure blockchains, as opposed to the conventional crypto consumer choosing a blockchain like Ethereum.

Additionally, developers are flocking to the Near protocol because it is compatible with Ethereum virtual machine (EVM). This is especially appealing since Ethereum has become congested and expensive to use.

Much like other cryptocurrencies, traders capitalize on the price volatility of the NEAR token, aiming to make profits off of the price fluctuations that the token experiences.

NEAR tokens are traded on most cryptocurrency exchanges, and there are typically slight price differences between exchanges, making it possible to arbitrage trade NEAR tokens too.

 

Where To Buy NEAR Tokens

NEAR tokens are commonly traded on most exchanges and individuals can easily purchase NEAR tokens with a credit or debit card. Since NEAR tokens were listed in 2020, there has been a surge in demand and trading volumes of the NEAR token.

On the 8th of April 2022, NEAR tokens 24-hour trading volume reached $3,21 billion.

Five of the most popular crypto exchanges are:

1. Binance (US Customers use Binance.US)
2. Gate.io
3. HTX
4. KuCoin
5. Crypto.com

Individuals can download and set up their personalized NEAR wallet which can be used to interact with DeFi applications in the Near ecosystem. Their cryptographic wallet addresses are used to ensure secure transactions on the network.

NEAR tokens power the network, similar to how ETH powers the Ethereum network.

 

About Near Protocol (NEAR)

How long has Near Protocol (NEAR) existed?

The Near network mainnet officially launched in April 2020 with the Near project having been initially founded in 2017 by Illia Polosukhin and Alexander Skidanov.

Sequentially, the NEAR token was listed on global exchanges and has seen significant price appreciation since its listing. The NEAR token reached its all-time high of $20.24 on the 15th of January 2022.

What’s controversial about Near Protocol (NEAR)?

There has recently been a surge in blockchain technology, emerging projects, and token trading volumes. Many projects entering the space claim to be improvements to existing blockchains, solve complex problems, and provide real-world utility – unfortunately, not all projects are transparent.

It’s relatively common for retail investors to fall victim to scams and ”rug pull” projects where they could lose large amounts of money. Therefore, retail investors need to do research regarding the credibility of projects and compare information from multiple online sources.

Let’s take a look at the top two controversies surrounding Near Protocol (NEAR).

• NEAR’s competitors – The Near blockchain has proved that it is capable of providing users with a secure, affordable, and scalable network. Developers can easily create apps, deploy them and benefit from the Near network’s efficiency and security.

  However, NEAR is only one of many blockchain projects offering these features. The project only went live in April 2020, which already sets it back many years behind the likes of Ethereum. So far, the Near ecosystem has only amassed a total value-locked (TVL) of more than $450 million.

  This is an impressive indication of the growth and user adoption Near has attained, however, Ethereum still dominates the space with a TVL exceeding $100 billion.

• Near isn’t that unique – Many projects entering the crypto space are seeking to make improvements on existing blockchains and their capabilities. Near has proved that it’s definitely capable of providing enhanced solutions, however, it joins a long list of projects that have already garnered mass adoption in the crypto space.

  Projects like Polkadot, Avalanche, and Solana already offer users cheaper network fees, improved transactional throughput capacity, and easy DApp development. Near will need to bolster user adoption to truly prove how capable and efficient its network is. Until Near can be tested with excessive traffic and users, the network can only claim to provide said solutions and capabilities.

How many Near Protocol (NEAR) tokens are there?

At the time of writing, Near Protocol (NEAR) has a circulating supply of 674,764,292.00 NEAR (67% of the total supply).

The total supply of Near Protocol (NEAR) is 1,000,000,000.

Can NEAR Tokens be mined?

Near is not a mineable cryptocurrency. Unlike Bitcoin and Ethereum which use proof-of-work consensus algorithms and require intensive rigs to mine – Near protocol uses a proof-of-stake consensus algorithm.

However, NEAR token holders can earn yields by participating and engaging with DeFi applications in the Near ecosystem. NEAR token holders can also become a node or validator in the network – token holders are rewarded according to the portion of Near tokens they have.

Some centralized exchanges also offer rewards to users that stake NEAR tokens for a certain duration, normally a minimum of 30 days.

What is the market cap of Near Protocol (NEAR)?

This is a simple way to work out the market cap of any cryptocurrency: calculate the total amount of coins in circulation and times that by the current market price of the token.

NEAR Market Cap = 674,764,292.00 NEAR x $11,39 = $7,68 billion (20th largest cryptocurrency by market cap).

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Near Protocol And NEAR Token

Near protocol is more than a blockchain; it offers a multitude of features that bolster its utility. Some of the features include EVM compatibility, smart contract functionality, and DApp creation and deployment. When considering Near Protocol’s competitors it’s essential to compare projects that provide the same features.

Near Protocol’s top competitors are:

• Avalanche
• Waves
• Polkadot
• Theta
• Ethereum

 

What Are The Future Plans Of Near Protocol (NEAR)

Near protocol has announced its intention to amass more valuable decentralized finance applications, a greater TVL in its ecosystem, and enhanced utility to benefit its users.

Near protocol continues to garner VC firm investments which are accelerating the project’s improvements and developments. The increase in backing and funding helps to bolster the growth of the Near ecosystem and drive user adoption of the Near network.

If the project continues to be innovative and add more utility, it will likely result in an increase in users, which will contribute towards making Near one of the most influential crypto projects.

 

Pros And Cons Of Near Protocol (NEAR)

Pros:

• Easy DApp creation and deployment – Near has streamlined the processes required to create and deploy decentralized applications – this in turn attracts more developers to the project.
• Cheap network fees – Near has much more affordable network fees than Ethereum. The nominal fees make the network more financially attractive to use.
• VC funding – Near has recently received a considerable amount of funding from multiple VC firms – this is indicative of the potential future success of the project.
• Real use case – Near positions itself as a project that provides solutions to the blockchain trilemma – security, scalability, and decentralization.
• Sharding technology – Near uses innovative sharding to achieve a more efficient and scalable blockchain. The implementation of sharding technology helps the network achieve transactional throughputs of up to 100,000 transactions per second (with nominal transaction fees).

Cons:

• Competition – Near is one of the most popular crypto projects in the space but it still has a significant amount of competition in the crypto space. Projects like Ethereum, Polkadot, and Avalanche are currently dominating the space.

  While many may argue that competition can be healthy, in an overly-saturated crypto market it has been the root cause of failure for multiple projects. Near will have to continue reaching more users for it to stand a chance of survival over the next few years.

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