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Near Protocol ecosystem analysis



NEAR is a proof-of-stake blockchain that is sharded and developer-friendly. To put it another way, it's similar to a community-run public cloud platform. That is, it is a highly scalable, low-cost platform on which developers can build decentralised apps.

Allows developers to create blockchain native mobile dApps and execute them, with consumers providing a key onramp into the dApps.

Allow the blockchain to scale roughly linearly with the number of nodes in a network by sharding by state.

Because they both have scalable blockchain and simple access to customers via the first mobile-native blockchain, blockchain entrepreneurs can quickly iterate and come up with effective business models.

Problem to be solved:

·         Building better developer tools are some of the issues that need to be addressed.

·         Sharding technique enables high transaction per second.

·         Decentralization should be increased.

Business:

The NEAR platform is, at its core, a marketplace for eager buyers and sellers. On the supply side, operators of validator nodes and other basic infrastructure must be rewarded for providing these “community cloud” services. On the demand side, the platform's developers and end-users who pay for its use must be able to do so in a simple, transparent, and consistent manner that benefits them.

At the micro level, new business models are being developed by directly rewarding the developers who create the most valuable applications.

At the macro level, this is accomplished by coordinating the actions of a larger group of ecosystem actors who are involved in everything from education to governance.

NEAR is a protocol and platform that uses the blockchain to create a place where developers may use the blockchain to build a place where the token can be used for staking, governance, and payment of transaction fees, among other things.

Epoch Rewards 

Node operators are paid a fixed proportion of total supply as a "security" fee of about 4.5 percent yearly for their services.

The protocol treasury receives 0.5 percent of total supply each year, in addition to validators, to continuously reinvest in ecosystem development.

Costs of Transaction:

The network's use uses two types of resources: immediate and long-term. Every transaction generates instantaneous expenses because it necessitates the utilisation of the network as well as some of its compute resources. These are combined into a largely predictable transaction cost, which is paid in NEAR tokens.

BANDWIDTH AND COMPUTATION ("GAS")

A compute (CPU) resource is a temporary resource used to complete a transaction. Each CPU instruction's cost is measured in "gas" units, and its price is based on the gradually modified price of gas (denominated in NEAR tokens)

Costs of storage:

Because holding data is a continuing strain on the network's nodes, storage is a long-term cost. Maintaining a minimum balance of NEAR tokens on the account or contract covers storage fees. This provides validators with an indirect payment mechanism via inflation for maintaining contract and account state on their nodes.

Inflation:

Inflation is calculated by subtracting payouts to validators and the protocol treasury from transaction fees received (and with a few additional NEAR burning processes like the name auction). Overall, the maximum inflation is 5%, which may decrease over time as the network grows in popularity and more transaction fees are spent. If there are enough fees burned, inflation may reach negative (total supply declines).

Security Thresholds:

Economic incentives are used to create some security thresholds that encourage good behaviour among members.


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