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What is Near Protocol? Tokenview

tokenviewAbout 2 min

What is Near Protocol? Tokenview

NEAR Protocol is a decentralized application (dApp) platform and Ethereum competitor that focuses on developer and user-friendliness. Its native NEAR tokens are used to pay for transaction fees and storage on the Near crypto platform. NEAR is a Proof-of-Stake blockchain that uses sharding technology to achieve scalability. Tokenview Near Protocol block exploreropen in new windowto get more information.

NEAR Protocol is a smart contract capable, public Proof-of-Stake (PoS) blockchain that was conceptualized as a community-run cloud computing platform. NEAR’s native token is also called NEAR, and is used to pay for transaction fees and storage. NEAR tokens can also be staked by token holders who participate in achieving network consensus as transaction validators.

How does Near Protocol work?

Decentralized applications have boomed in the crypto community, with DApps that run the gamut from games to financial services. However, it has also become apparent that scalability remains a problem in most blockchains.

Near Protocol is starting to implement a new version of sharding, which will turn it into what it describes as a 'fully sharded' network. The innovation is 'state sharding,' as opposed to simply 'processing sharding.' Instead of simply dividing up the responsibilities of the validators, it actually divides the blockchain itself up into smaller parts. Near calls its technology 'Nightshade' and began introducing it in phases in late 2021, as the transaction volume on the network increased.

In proof-of-stake, bad actors are deterred from corrupting the system by a requirement to 'stake' a certain volume of tokens to validate blocks. Near currently sets the number of nodes at 100 and requires a minimum threshold of 67,000 NEAR tokens in order to participate in the validation of new blocks of legitimate transactions and get rewarded with more tokens.

NEAR Platform Governance

Resources allocated to the protocol treasury are distributed by the NEAR Foundation, a Switzerland-based non-profit dedicated to protocol maintenance, ecosystem funding, and guiding the governance of the protocol. Technical upgrades to the NEAR crypto network are carried out by the Reference Maintainer, which is selected by the NEAR Foundation board, though all nodes in the network must consent to updates by upgrading their software. Eventually, oversight of the Reference Maintainer will be conducted by community-elected representatives.

NEAR Protocol aims to pull ahead in the crowded race to provide the infrastructure for Web 3.0 and has sought to distinguish itself through its unique developer and user friendly features.

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