What is Near Protocol (NEAR)? How Does It Work?

Founded in 2017, Near Protocol has become one of the most popular layer 1 solutions today. With its structure that sets it apart from other blockchains, Near Protocol allows developers to find quick solutions. In this article, you can find answers to questions like “What is NEAR?”, “How does NEAR work?”, and “How to buy NEAR?”.

How Did Near Protocol (NEAR) Emerge?

In 2017, Illya Polosukhin and Alexander Skidanov started working on a project called Near.ai with the aim of establishing a business model focused on machine learning. They wanted to use blockchain for machine learning, but upon realizing that blockchain lacked the necessary infrastructure, they changed the project’s structure to develop the required infrastructure. Renamed Near Protocol in 2020, the initiative evolved into a full-fledged layer 1 solution, reaching its current version today.

Features of Near Protocol

Founded to enhance blockchain technology, Near Protocol aims to simplify the process for developers to build applications and bring their ventures to life on the Near blockchain. The protocol primarily focuses on making this process easier.

The sharding feature, which is a target for many blockchain projects, is already actively used in Near Protocol. The Nightshade sharding function allows each validator on the Near blockchain to hold only a portion of the data they would normally need to store, thereby reducing their load. This enhances the security of the blockchain by distributing it more widely, while also reducing costs, speeding up, and lowering the network’s expenses.

As a result, Near Protocol can process 100,000 transactions per second and confirm transactions in under one second.

Near Protocol Consensus Structure

Near Protocol uses a Delegated Proof of Stake (DPoS) consensus mechanism. NEAR token holders can transfer their tokens to a delegate of their choice, thereby delegating their voting rights.

Those who wish to become delegates on Near Protocol must create their own staking pools. Delegates can determine how much commission they will take and how much revenue they will distribute to users who choose them. This creates a competitive environment among delegates under free market conditions, intending to build a structure that benefits the users.

NEAR Token

Thirty percent of the commission revenue generated from transactions on the Near blockchain is distributed as rewards to applications on Near. The remaining 70% is burned, removing it from circulation.

The NEAR token has an inflationary structure. The token supply increases by 5% annually. Of this, 4.5% is distributed as rewards to validators on the Near blockchain, while the remaining 0.5% is sent to the treasury to support the development of Near Protocol.

Since 70% of the transaction fees on the Near blockchain are burned, it’s possible to burn more tokens than the 5% supply increase when there is an uptick in transaction volume and commission fees. As a result, there is a potential for the NEAR token to become deflationary as the Near blockchain gains popularity.

Layer 2 Solutions

There are layer 2 initiatives on the Near blockchain. The most popular layer 2 solution, Aurora, aims to create an EVM-compatible Near blockchain by acting as a bridge between the Near blockchain and the Ethereum blockchain. This allows Ethereum-based applications to run smoothly on Near Protocol and take advantage of the benefits of the Near blockchain.

Additionally, there is a bridge solution called Rainbow that facilitates asset transfers between Near and Ethereum.

Get to Know More

You can visit the Near Protocol website by clicking here.

To access the Near Protocol whitepaper and gain detailed information, click here.

How to Store NEAR?

You can store and manage NEAR cryptocurrency using browser, desktop, mobile, and hardware wallets that support the Near blockchain.

How to Buy and Sell NEAR?

To buy and sell Near Protocol (NEAR) with Turkish Lira and Tether, you can use the BtcTurk | Kripto website or the BtcTurk | Kripto mobile app. If you are not a member of BtcTurk | Kripto, you can sign up immediately on our website or mobile application and buy Near Protocol (NEAR). You can deposit Turkish Lira 24/7 using one of our seven affiliated banks.

We remind our users to conduct the necessary research and assessments within the framework of risk management principles and to trade according to their own risk-return levels.