This is what one might call a “soft touch”! The NEAR Protocol crypto has just discreetly entered the world’s top 20! It must be said that NEAR Protocol had an excellent Christmas 2021! In fact, the cryptocurrency price has been in a very important dynamic since the end of 2021. At present, due to its $ 11.8 billion capitalization, the NEAR protocol is now the 16th.th global crypto. Discover the key principles of the crypto-NEAR protocol.
Crypto NEAR Protocol, what is it?
The NEAR Protocol ecosystem is being structured, but already has real strategic benefits.
The people behind the NEAR Protocol project
The NEAR Protocol crypto has been listed on Coinmarketcap since November 2020. Its creator is Erick Trautmanan entrepreneur known for having worked on Wall Street. Alex Skidanovformer software developer at Microsoft and Illia Polosukhina former chief engineer at Google, also participated in the creation of the NEAR protocol.
Suffice it to say that the NEAR protocol is based on a more than robust base! Since its inception, the startup has also managed to raise more than $ 65.9 million through traditional fundraising. Most recently, The NEAR Foundation announced on 13 January 2022 that it had raised 150 million euros to speed up “mass use of Web 3.0”.
What is the NEAR protocol?
NEAR Protocol is a third generation blockchain that specializes in development of decentralized applications (or Dapps). In its philosophy, therefore, the NEAR Protocol is very similar to the Ethereum network, Solana, Cardano, Phantom, etc. In practice, its ecosystem is not yet so developed. Blockchain uses the consensus protocol from DPoS (delegated proof-of-effort) and achieve CO2 neutrality.
The NEAR Protocol blockchain has two major benefits that should promote its development and adoption:
- A very easy application creation. As its website points out, it only takes “5 minutes” to create an application on NEAR Protocol.
- Compatibility with Ethereum. Applications developed with Ethereum are compatible with NEAR Protocol thanks to its smart contract called Aurora. This is a strong argument that should appeal to people who are tired of the Ethereum blockchain because of its cost and low scalability.
To promote blockchain adoption, NEAR Protocol announced in October 2021 that it had created one $ 800 million to fund project development. NEAR Protocol will also soon organize one NEAR Bootcamp. Twitter sign-ups were open until January 9, 2022.
Sharding to run NEAR protocol
The most important feature to know about the NEAR protocol is its Nightshade Sharding. Sharding is a “technique” also under development on the side of Ethereum 2.0 in particular. But what is Sharding?
The 3 key criteria for a blockchain
Before we discuss Sharding itself, it’s helpful to return to THE mantra with regard to blockchain construction. In fact, a blockchain must be able to meet the following three criteria:
If this is true on paper, the reality is quite different! In fact, blockchains at present cannot work equally on these 3 criteria. In other words, they must choose which criterion to prioritize.
For example, blockchain Solana has made the choice of scalability at the expense of its decentralization and its security, which has led the network to experience a few attacks lately. Vise versa Ethereum originally favored its decentralization and security and now faces a major problem of scalability. With disintegration, these contradictions are resolved!
What is Sharding?
The principle of sharding comes to us from databases. In French, “sharding” means “blasting”. With this translation in mind, it is easier to understand the philosophy behind sharding. Specifically, cutting consists of divide a blockchain into several blockchains. Each of these “sub-blockchains” is independent in the sense that they each have their own nodes and validators.
Sharding therefore makes it possible to improve the three above criteria in the following way:
- Security. At first glance, one might think that shading is not very safe, as it is enough for a hacker just to corrupt certain nodes to take possession of the entire shards. To avoid this, the idea developed by Vitalik Buterin on Ethereum 2.0, for each validation, is to randomly assign the nodes on a swath and then reassign them elsewhere when the work is complete.
- Scalability. Each node has only the “sub-blockchain” to which it belongs, and therefore has less information to manage.
- Decentralization. All information contained in a “shard” can also be shared with all blockchain nodes.
With sharding, NEAR Protocol ultimately represents one scalability of 100,000 transactions per second. Full implementation of sharding on the NEAR Protocol blockchain is expected by the end of 2022.
NEAR Protocol token price
For operation and financing, the ecosystem uses the original token NEAR. This token gives control rights to its users. In addition, it is possible to make stakes to receive income.
Currently, the price of the NEAR token is around $ 19. It stays on excellent performances like:
- +23% over the last 7 days;
- + 87% over the last 30 days;
- +63% over the last 60 days;
Suffice it to say that the NEAR token has excellent dynamics. For some, this dynamic is somewhat premature and leads to overestimation of the token given that its ecosystem is still in its infancy. For others, it’s just the start of a great adventure given the many developments in the NEAR Protocol boxes for 2022.
So you need to buy NEAR coins? Now that you know the NEAR Protocol blockchain and its NEAR token better, make your choice!
Disclaimer: This article is promotional content and does not constitute investment advice. Do your own research and invest only the money you can afford to lose.
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