The blockchain universe, which is already vast, is rapidly
increasing. Every year or so, a new, ambitious initiative emerges, eager to
innovate and dazzle. Many people fail to meet their expectations. Others, such
as the NEAR Protocol, go above and beyond.
NEAR Protocol is one of the rising stars in the blockchain
sector, with a development staff loaded with talent and experience and more
than $60 million in funding. Less than two years after its founding, what began
as an open-source platform designed to expedite decentralised apps has recently
evolved into a decentralised autonomous organisation.
What is NEAR
Protocol?
NEAR Protocol is a decentralised application platform that
allows users to freely design, execute, and access decentralised applications
(DApps) using smart contract functionality. Its main goal is to give ordinary
people access to "the potential of the Open Web."
The initiative, known as NEAR, offers consistent costs,
scalability, and developer-friendly features. Two of these characteristics are:
Nightshade is a consensus technique based on Proof-of-Stake
(PoS).
Doomslug is a mechanism for producing blocks that can handle
over 100k transactions per second (TPS)
How does it work?
The two mechanisms that make NEAR Protocol operate,
Nightshade and Doomslug. Let's look at them more closely!
When a new block is added to the NEAR blockchain, Nightshade
is a PoS technique that allows validator nodes to broadcast their current
state's shards. Nightshade adds a snapshot of every shard to the chain's
blocks, rather than sharding in other currency as other blockchains do. Because
many of the transactions that are completed do not overlap, the network is
faster and more efficient.
Doomslug is a network-wide method that allows validator
nodes to produce blocks in different ways. Each of them takes a turn once every
epoch, which is a 12-hour period. The NEAR network generates blocks at a rate
of one per second.
Inflation, which is now around 5% each year, provides block
incentives to nodes. Staking validators and delegators receive a portion of 90
percent of each block's value as a reward. The remaining 10% goes to the NEAR
Foundation's treasury, which is supervised by the NEAR Foundation.
To become a validator node on NEAR, users must stake their
NEAR tokens. The larger their share of the block reward, the more tokens they
stake collectively within a certain shard.
A user must take at least one of the 100 available seats to
enter a shard. The cost of each seat is determined by the total number of
staked tokens. To improve speed and efficiency, the platform allows validators
to access smaller shards.
Users that want to be validators but can't afford to take a
seat can persuade delegators to delegate their tokens on their behalf. Staking
pools can be used by the delegators to accomplish this. They get a piece of the
validator's block reward in exchange.
Validators and delegators have the option to unstake at any
time. Those who breach the regulations, on the other hand, may lose a major
portion of their investment.
Final Thoughts
NEAR Protocol appears to be a latecomer to the market for
blockchain-based applications. Its market is already dominated by more powerful
and well-known enterprises, such as Polkadot. At first glance, it appears like
the platform has a lot of catching up to accomplish.
NEAR, on the other hand, benefits from major support. It
also features a seasoned team that includes some of the industry's most
sought-after and talented talent.
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