Wikipedia

Draft:NEAR Protocol (Blockchain Platform)

  • Comment: There is another version of this subject at Draft:NEAR Protocol. At the time of writing, the current draft is promotional, but the subject can be promising as there is WP:GREL coverage, albeit some is WP:ROUTINE. TLAtlak 02:26, 5 March 2024 (UTC)
  • Comment: A single yellow-rated source, which is only about a funding round which provides no evidence of notability for WP:NCORP. Too many primary sources, uses any cryptocurrency sources at all. You need coverage in solid mainstream WP:RSes - David Gerard (talk) 12:19, 2 March 2024 (UTC)


NEAR Protocol
Denominations
CodeNEAR
Development
Original author(s)Alex Skidanov, Illia Polosukhin
White paperNEAR Protocol: A scalable blockchain designed for usability
Code repositoryhttps://github.com/near/
Development statusActive
Developer(s)NEAR Inc. & NEAR Foundation
LicenseApache 2.0[1]
Ledger
Block explorerhttps://explorer.near.org/
Website
WebsiteOfficial website

NEAR Protocol is a blockchain platform and cryptocurrency ecosystem for the development and deployment of decentralized applications (dApps). NEAR utilizes a sharding technology, "Nightshade,"[2] to facilitate high-speed transactions and maintain low operational costs. This technology is designed for scalability to ensure the network's capacity to grow without compromising on security or performance, supported by its native digital cryptocurrency, NEAR. Its approach to solving blockchain scalability and usability challenges has been detailed in mainstream coverage.[3]

History edit

NEAR Protocol began as a project focused on machine learning and artificial intelligence, named NEAR.ai, in early 2017. It was founded by Illia Polosukhin and Alexander Skidanov, who both had backgrounds in computer science and experience at companies including Microsoft, Google's TensorFlow, and MemSQL. The project's pivot to blockchain technology was prompted by the founders' attempt to pay contributors in Ethereum. Finding the existing blockchain solutions inadequate for their needs, Polosukhin and Skidanov sought to develop a new programmable smart contract platform used for crypto payments and greater efficiency.[4] The NEAR blockchain officially launched its main network in April 2020 after phases of testing and development.[5] This launch was supported by a $21.6 million funding round from Andreessen Horowitz (a16z).[6] Beforehand, NEAR Protocol developers raised a $12.1M round led by Metastable and Accomplice to bridge the adoption gap for decentralized applications, setting the stage for its future developments.[7] In April 2022, NEAR secured a new $350 million investment, which was aimed at accelerating development and consolidating its position in the competitive blockchain space.[8][9]

Technology edit

Consensus Mechanism edit

NEAR Protocol utilizes a proof-of-stake consensus mechanism. Known as Doomslug, this mechanism is designed for faster transaction processing times compared to traditional proof-of-work (PoW) systems, while also ensuring that the network remains decentralized and secure.[10] The adaptation of such consensus mechanisms is designed for a move towards more sustainable and scalable blockchain operations, to address some of the environmental concerns associated with cryptocurrency mining.[11]

Sharding edit

The platform's scalability is primarily achieved through Nightshade, a dynamic sharding mechanism. This approach allows the network to process transactions in parallel with the goal of increasing throughput without compromising security or decentralization.[12] Nightshade's development is ongoing, with further phases planned to increase its functionality and performance.

Usability edit

NEAR offers features such as human-readable account names and straightforward account management. For developers, the platform provides comprehensive documentation, development tools, and support for multiple programming languages, facilitating the creation of applications.[13] In April 2023, Cosmose AI partnered with NEAR Protocol to develop a blockchain-based payment system.[14]

Data Availability edit

In a move to address the scalability and efficiency challenges faced by Ethereum, the NEAR Foundation has developed "data availability" solutions, aiming to reduce the load on the Ethereum blockchain. This initiative, known as "NEAR DA," works to enhance blockchain infrastructure, offering a more cost-effective and efficient alternative for storing and broadcasting extensive amounts of data on Ethereum by providing an alternative venue capable of supporting the demands of a rapidly expanding network. This includes auxiliary blockchains or layer-2 networks that operate atop Ethereum.[15]

Governance edit

Governance on NEAR Protocol is executed through a decentralized autonomous organization (DAO). Token holders can vote on decisions regarding the network's future development, policy changes, and funding allocations, ensuring a community-driven approach to governance.[16]

Tokenomics edit

The NEAR token serves multiple purposes within the ecosystem, including paying for transaction fees, staking for network security, and participating in governance. This multifaceted utility helps to align incentives across the network's participants and contributes to the overall security and decentralization of the platform.[17]

Ecosystem edit

The NEAR ecosystem encompasses DeFi applications, NFT platforms, and a wide array of other dApps. One notable development is the launch of Aurora on the NEAR Protocol, which aims to provide an Ethereum Layer-2 experience by offering high-throughput and low transaction costs, further bridging the gap between Ethereum and NEAR for developers and users alike.[18] Additionally, the NEAR ecosystem has demonstrated its potential for societal impact, with initiatives such as using cryptocurrency for fundraising efforts. For instance, during the crisis in Ukraine, the global community turned to cryptocurrencies, including those on platforms like NEAR, to quickly and securely send aid, showcasing the technology's ability to mobilize resources in response to humanitarian needs.[19]

Reception edit

NEAR Protocol has been highlighted as one of the 10 fastest-growing cryptocurrency ecosystems in 2021, reflecting its rapid adoption and the effectiveness of its technological innovations.[20] Furthermore, the platform's ability to attract significant funding rounds, such as the $21.6 million from Andreessen Horowitz and the $350 million raised in 2022, underscores investor confidence in its potential to reshape the blockchain landscape.[21]

Its initiatives in the gaming industry and partnerships with companies like WEMADE[22] and MARBLEX[23], highlight its growing influence and adoption across various sectors. Additionally, NEAR's commitment to interoperability and accessibility was further demonstrated through its collaboration with RECUR, enhancing the ecosystem's capabilities.[24]

Controversies edit

The blockchain and cryptocurrency industry, including NEAR Protocol, navigates a regulatory landscape. In addition to debates over environmental impact and market volatility, regulatory scrutiny has emerged as an area of controversy. The U.S. Securities and Exchange Commission (SEC) has increased its oversight of cryptocurrency exchanges and platforms, reflecting growing concerns about investor protection and financial stability in the evolving digital asset space. An example of this heightened regulatory attention is seen in the SEC's actions against Coinbase in June 2023, in which NEAR was cited along with several other prominent cryptocurrencies.[25] NEAR Protocol, along with other blockchain platforms such as Algorand and Filecoin, experienced price plunges.[26][27] Additionally, the project's Octopus Network recently announced layoffs of 40% of its team.[28]

See also edit

References edit

  1. ^ "nearcore/LICENSE". NEAR Inc. 17 March 2023. Archived from the original on 18 March 2023. Retrieved 18 March 2023.
  2. ^ "How Nightshade Sharding Works". NEAR Protocol. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  3. ^ "Explained What is Near Protocol and how does it work?". CNBCTV18. 22 February 2022. Retrieved 2024-03-04.
  4. ^ "NEAR Protocol Profile". Messari.
  5. ^ "NEAR Protocol Launches Mainnet". NEAR Protocol Blog. Archived from the original on 2021-05-01. Retrieved 2024-03-01.
  6. ^ "NEAR Protocol raises $21.6M from A16Z and launches its MainNet, beating Ethereum 2.0". TechCrunch. 4 May 2020. Retrieved 2024-03-04.
  7. ^ "NEAR Protocol Developers Raise $12.1M Round led by Metastable and Accomplice to Bridge the Adoption Gap for Decentralized Applications". Business Wire. 10 July 2019.
  8. ^ "Crypto Investing: Near Protocol Raises $350 Million for Blockchain". Bloomberg. 6 April 2022.
  9. ^ "Near secures new $350m investment in giant bet on fast blockchains". Axios. 6 April 2022.
  10. ^ "Understanding Doomslug". NEAR Protocol Documentation. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  11. ^ "Mining Cryptocurrencies Is More Energy Intensive Than Actual Mining, Researchers Say". BuzzFeed News. 5 November 2018.
  12. ^ "How Nightshade Sharding Works". NEAR Protocol. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  13. ^ "NEAR Protocol Developer Documentation". NEAR Protocol Documentation. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  14. ^ Rita Liao (24 April 2023). "Now valued at $500M, Cosmose ditches Stripe to adopt Near's crypto solution". TechCrunch.
  15. ^ "Near Foundation Joins Celestia in Race to Provide 'Data Availability' for Ethereum Rollups". Markets Insider.
  16. ^ "NEAR Foundation: Governance and Funding". NEAR Protocol. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  17. ^ "NEAR Token Economics". NEAR Protocol. Archived from the original on 2024-03-01. Retrieved 2024-03-01.
  18. ^ "Aurora Launches on NEAR Protocol, Providing Ethereum Layer-2 Experience". Business Wire. 12 May 2021.
  19. ^ "How Ukrainians are fundraising in cryptocurrency". The Verge. 26 February 2022.
  20. ^ "The 10 Fastest-Growing Cryptocurrency Ecosystems In 2021". Forbes. 5 January 2022.
  21. ^ "NEAR Protocol raises $21.6M from A16Z and launches its MainNet, beating Ethereum 2.0". TechCrunch. 4 May 2020.
  22. ^ "NEAR Protocol Leads Korean Web3 Gaming Industry with Strategic Partnership with WEMADE". Markets Insider. Retrieved 2024-03-04.
  23. ^ "NEAR Protocol Continues to accelerate market share in Korean Web3 Gaming Industry by Becoming the First ever to Integrate with Netmarble's subsidiary MARBLEX 'WARP Bridge'". Markets Insider. Retrieved 2024-03-04.
  24. ^ "RECUR and NEAR Protocol Partner to Enhance Interoperability and Accessibility in Web3". Markets Insider.
  25. ^ "SEC Complaint Against Coinbase, Inc. and Coinbase Global, Inc" (PDF). U.S. Securities and Exchange Commission. 2023.
  26. ^ "Why Algorand, Filecoin, and NEAR Protocol Plunged This Week". The Motley Fool. 9 June 2023. Retrieved 2024-03-04.
  27. ^ "Near Foundation Downsizes in Bid to Boost Efficiency". Yahoo Finance. 12 January 2024.
  28. ^ "NEAR Protocol Project Octopus Network Lays Off 40% of Team". Yahoo Finance. 27 December 2022.

Category:Blockchains Category:Cross-platform software Category:Cryptocurrencies Category:Cryptocurrency projects

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