NEAR coin is one of the cryptocurrencies launched in the market in 2020 with unique improvements and is even compared with the ETH coin. So, what is the Near Protocol project, what is NEAR coin, and should you invest in NEAR coin, let’s look at the detailed information below.
What is NEAR coin? Should you invest in NEAR coin?
What is the concept of NEAR coin?
Some basic information about NEAR Coin you need to know:
- Trading Code: NEAR
- Launch Date: 14/10/2020
- Contract: 0x1fa4a73a3f0133f0025378af00236f3abdee5d63
- Blockchain: NEAR Protocol
- Total Supply: 1,000,000,000 NEAR
- Circulating Supply: 1,217,906,155 NEAR
Allocation of NEAR coins:
- Community Grants, programs 17.20%
- Core Contributors 14%
- Operations Grants 11.40%
- Backers 17.60%
- Foundation Endowment 10%
- Small Backers 6.10%
- Early Ecosystem 11.70%
- Community Sale 12%
Who are the founders of NEAR Protocol?
+ Alexander Skidanov (on the left): Alex joined Microsoft in 2009 as a software developer and later joined MemSQL in 2011, where he worked for 5 years as a Technical Director and senior software developer. Since June 2017, he has been a co-founder of NEAR Protocol along with Ilia Polosukhin.
Illia Polosukhin (on the right): Illia has over 10 years of experience in the industry, including 3 years working at Google as a Technical Director in 2014. Currently, he is working with Near Protocol as a co-founder since 2017.
Additionally, NEAR Protocol is also built by a team of about 200 collaborators, most of whom have many years of experience and have worked for giant technology companies like Facebook, Google, Microsoft, Consensys, etc.,
Prominent technologies of the NEAR Protocol ecosystem
NEAR Protocol employs several innovative technologies to enhance its blockchain platform’s performance and user experience:
- Proof-of-Stake (PoS) Consensus Mechanism: Unlike Proof-of-Work (PoW), which requires significant computational power, PoS is more energy-efficient. Validators on the NEAR network are chosen based on the amount of NEAR tokens they stake, making the process eco-friendlier.
- Nightshade Sharding: This unique approach to sharding allows the blockchain to process transactions and store data in a more scalable way. By breaking the network into multiple shards, NEAR can handle many transactions simultaneously, significantly improving throughput and reducing congestion.
- Doomslug: It’s NEAR’s block production mechanism, designed to achieve high throughput and fast finality. Doomslug enables the blockchain to produce blocks quickly, ensuring that transactions are processed efficiently.
- Rainbow Bridge: This feature enables the transfer of tokens and data between NEAR and Ethereum blockchains. It facilitates interoperability and allows users to leverage the strengths of both ecosystems.
- Developer and User-Friendly: NEAR emphasizes simplicity in its design, aiming to make it easier for developers to build and deploy decentralized applications (dApps). It also focuses on creating a seamless user experience to encourage wider adoption.
- Staking Rewards and Governance: Token holders can participate in network security through staking and earn rewards. They also have a say in governance decisions, contributing to the decentralized management of the protocol.
These technologies collectively make NEAR Protocol a robust, scalable, and user-friendly platform, suitable for a wide range of decentralized applications.
Using the Rainbow Bridge between NEAR and ETH
Innovations in DeFi and NFT have increased the demand on the Ethereum network and skyrocketed transaction fees. The NEAR-ETH Rainbow Bridge allows users to seamlessly move assets to the low-cost, developer-friendly platform of NEAR.
The first phase of the ETH ↔ NEAR Rainbow Bridge opens the gateway for free circulation of assets between the NEAR and Ethereum blockchains, allowing users to connect any ERC-20 token they want.
Rainbow Bridge allows any information provided cryptographically on NEAR to be used in Ethereum contracts and vice versa.
The following popular tokens with common ERC-20 functionality can interact with NEAR, including but not limited to:
- Stablecoins like USDT (Tether), DAI, and TUSD
- Wrapped content like WBTC and WETH
- DEX tokens like UNI and 1INCH
- Lending tokens like AAVE and COMP
- Service company tokens like HT (Huobi) and CRO (Crypto.com)
- Users can directly send these ERC-20 assets from MetaMask or other Web3 wallets to NEAR wallets and applications, and vice versa.
What are the advantages and disadvantages of NEAR?
Is NEAR coin a good investment?
This is a question that many people have regarding NEAR cryptocurrency as well as other cryptocurrencies. In reality, investing in cryptocurrencies involves significant risk, and no one knows what the future holds. For example, the price trend of NEAR coin as mentioned above shows that the NEAR coin price reached 7 USD and then a few months later dropped back to about 1.5 USD, just a bit above its starting level.
Although the transaction fee of NEAR is much lower than Ethereum, and its technology is more prominent in terms of user-friendliness, investors may still not see a truly impressive highlight that makes them willing to invest heavily in it. Overall, it is still considered a promising project if it develops successfully.
So if you believe in the NEAR Protocol project, you could invest a small portion of your capital in it, just a small amount so that if NEAR coin hits rock bottom, it won’t significantly affect your finances. And if you’re lucky, suppose its price doubles or triples in a year compared to the previous year, then you can consider it a reward that you deserve for not being swayed by market psychology.
– NEAR coin is a cryptocurrency created by the NEAR Protocol ecosystem.
– NEAR Protocol is a Blockchain platform developed on Sharded (segmented), Proof-of-Stake (consensus), Layer 1 technology with the aim of being user-friendly, low cost, infinitely scalable, and fast processing.
– The development potential of NEAR is quite good, however, as a cryptocurrency, it also has risks that investors should not invest too much of their capital in.
– Should you invest in NEAR coin? The answer to this will depend on each individual’s assessment, in general, NEAR coin is suitable for long-term investment, but you should only use a small amount of capital for it.
– Is Near coin a scam? This project is similar to other decentralized financial projects, there is no legal obligation so it’s not certain whether the real money you put in for cryptocurrency will be lost. However, it is still being trusted and chosen by many investors worldwide.
Through this, I hope you understand what NEAR coin is and the future prospects of this digital currency. If you have any opinions about the NEAR Protocol project you would like to share, feel free to leave a comment for discussion!
