Launched in April 2020 by Illia Polosukhin and Alexander Skidanov, NEAR Protocol quickly became one of the most advanced protocols in the blockchain space.
Today, we will cover the following topics:
- About NEAR Protocol
- How does NEAR Protocol work?
- Key Features
- Technical Analysis
- Why is NEAR The Coin of the Week?
About NEAR Protocol (NEAR)
What is NEAR Protocol?
NEAR Protocol is taking the blockchain world by storm with its scalability boost to a massive 100,000 transactions per second and its advanced sharding approach.
It's not just about speed tho; NEAR puts user experience front and center. Easy and readable account names replace confusing, long and random wallet addresses.
For devs, NEAR is a goldmine that never dries. Its SDK is packed with pre-built tools, minimizing development time.
From DeFi to NFTs and gaming, NEAR ecosystem is full of projects like Mintbase and Flux, that showcase the platform's versatility.
Being user friendly, fast and secure, NEAR's mission is to reshape the blockchain landscape and promote decentralization into the mainstream.
Dig deeper into NEAR Protocol whitepaper.
NEAR Token
NEAR is more than just a token, here's why NEAR it matters within the ecosystem.
Governance power
Hold NEAR and shape the future => Holders vote on important protocol decisions, ensuring a truly decentralized ecosystem.
Staking rewards
Lock up NEAR to earn more => Validators secure the network and hence get rewarded, with an initial 5% annual inflation rate making it scarce.
Transaction fuel
Every action on NEAR needs a bit of NEAR. These fees get validators rewarded, thus motivated to operate within the ecosystem.
Dev incentives
NEAR rewards builders, fostering a vibrant dApp landscape. From DeFi to gaming, creativity thrives here.
How does NEAR Protocol?
At its core, NEAR employs Nightshade, a unique sharding solution that splits the network into manageable blocks.
This allows for parallel processing, boosting transaction speeds and lowering costs.
The Rainbow Bridge is NEAR's secret weapon for interoperability.
It creates a seamless connection with Ethereum, letting users move assets between chains with ease. Tokens are locked on one side and minted on the other, ensuring a secure digital assets.
Aurora takes NEAR's potential to a whole new level. This layer-2 solution brings Ethereum compatibility to NEAR, allowing devs to port their Ethereum apps with ease.
NEAR also prioritizes user experience. Human-readable account names replace cryptic addresses, while gas fee rebates let dApps cover transaction costs for users. It's these three components that makes NEAR truly unique.
Key Features
Here are the key features that sets NEAR apart:
User-Centric Design
Say goodbye to long and complicated addresses. NEAR introduces human-readable accounts at your fingertips. Gas fee rebates allow dApps to cover transaction costs, making it attractive for mainstream adoption.
Validator Ecosystem
NEAR's special auction system for validators ensures real decentralization. Block producers, hidden validators and alert monitors, has an important role in keeping the network secure.
Developer Paradise
Familiar programming languages like Rust and AssemblyScript make developers feel right at home.
Economic Engine
Ultra-low transaction fees and a token model that rewards active participation drive NEAR's expanding economy. The platform's efficiency means cost savings for both users and developers.
Scalability Unleashed
NEAR's architecture offers endless scalability, smoothly adapting as demand increases. This makes it an ideal choice for high-traffic applications and ambitious projects.
Cross-Chain Pioneer
The Rainbow Bridge is more than just a link—it's a highway between blockchain ecosystems. NEAR's interoperability unlocks endless possibilities for asset transfers and cross-chain innovations.
Technical Analysis
As per our previous market outlook, NEAR is still in oversold territory as it sits at the intersection of the lower red and blue trendlines and the $3 round number.
As long as the $3 level holds, I expect a short-term bullish movement towards the $4.75 mark.
Once the $4.75 major high is broken upwards, a longer-term bullish correction towards the upper bound of the red channel is expected.
Why is NEAR The Coin of the Week?
NEAR Protocol (NEAR) has been chosen as the Coin of the Week because it delivers on its promises, unlike many other new tokens that only talk the talk.
NEAR's use cases are real, unique, and essential within the blockchain space, and its developer-friendly design gives it great potential for widespread adoption.
From a technical perspective, NEAR is rejecting an intersection of three support levels, making it a prime "bomb zone" with an expected explosive movement ahead.
Also read more Coin of the Week articles.
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See you next week for another coin of the week! 🚀
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