NEAR cryptocurrency: A new crypto protocol

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Greetings guys,
Hope you're doing well.
I'm back with a new content in which you'll get to know a new crypto protocol called NEAR which is knows as a new and promising cryptocurrency protocol. Let's get to it.

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These days we are witnessing the birth of different cryptocurrencies in the blockchain world. Therefore, it is important to familiarize yourself with the new elements of this field to maximize profitability. One of these new ones is the NEAR cryptocurrency. If you also want to know what the protocol's NEAR currency is, and how to make a profit by buying NEAR, don't neglect to read this article. But before that, let's take a look at the arrival of this digital currency into the blockchain world.

With the growing popularity of cryptocurrencies and blockchain technology, old networks such as Bitcoin, Ethereum, etc. Due to the increasing demand, they have faced scalability challenges. In addition, the popularity of decentralized programs and irreplaceable tokens (NFT) has made the challenges particularly significant in the Ethereum blockchain, and the network often faces increased commissions and transaction costs due to heavy traffic, which discourages many Ethereum users and activists.

Meanwhile, while several teams are exploring different scaling solutions for blockchain networks, the NEAR Protocol team has focused on lifting restrictions through sharing and solving much of these problems. This flood has led many people to think about buying near cryptocurrencies.

Introducing NEAR Protocol

The Near Protocol ( Simply Near) token is native to the NEAR ecosystem. NEAR Currency is an ERC-20 token that was marketed at a maximum of 1 billion tokens in August 2020 with the aim of paying for transactions and storage on the blockchain network. In currency transactions, developers who create smart contracts are also rewarded with a portion of the transaction fees that their contract creates, and the rest of these fees are burned to keep NEAR tokens scarce. NEAR has also established a protocol coffers that receive 0.5% of the total supply annually in order to reinvest in ecosystem development.

NEAR platform has provided many advantages for holders of this currency. For example, currency holders in this protocol can participate in the near network administration by voting on decisions and submitting suggestions on platforms and products. In addition, they can also win prizes by participating in NEAR Wallet and betting on the NEAR currency to run validation nodes with the aim of rewards of 4.5% of the total NEAR offering.

History of NEAR Currency

The NEAR cryptocurrency was the subjective product of two shrewd individuals, Alexander Skidanov and Ilya Polosukhin, formed in 2017. Since the founders of NEAR sought research into the production of decentralized applications on the blockchain, they realized that none of the existing blockchains had such a structure and capability, and as a result, they produced the NEAR protocol.

The main problem facing old blockchains such as Ethereum is that by increasing the number of actions in the network, the speed of the transports slows and their commission increases. This led Kidanov and Polosakhin to think about a solution to the problem and try to find a solution to the blockchain scalability problems.

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What is the NEAR Currency Protocol?

NEAR is a new generation of Layer 1 blockchain built for the network and basic infrastructure of the ecosystem. Bitcoin and Ethereum are examples of other one-layer or main layer blockchains, and other applications are built on them. These blockchains are generally tasked with verifying and finalizing transactions and keeping the network safe from damage and vandalism by rewarding creditors. But the difference between NEAR and other protocols is that in the Nir protocol, creditors are rewarded to the network using currency tokens.

The project is also being developed as a community-run cloud infrastructure to host decentralized plans (DApps). The NEAR platform includes a wide range of programming tools and languages, as well as cross-chain-enabled smart contracts to help developers build DApps as well.

How NEAR Protocol works?

As we said, with the increasing popularity of decentralized programs (DApps), the cryptocurrency community has faced serious scalability problems. Scalability in this area refers to a blockchain's ability to manage a large number of transactions at reasonable speeds and costs, and the Ethereum network is grappling with scalability challenges more specifically than other networks due to the high demand of users to use it.

But while some people support the creation of scalable solutions on Ethereum (e.g. layer 2 solutions), other projects like NEAR have decided to build completely new blockchains with different types and new features.

The proposed solution of the NEAR protocol for this scalability problem is to implement sharding. But before delving into what this means, you need to understand the three main functions of blockchain nodes:

• They process transactions
• They communicate confirmed transactions and completed blocks with other nodes
• They store the status and history of the entire network
• Also, with increasing congestion in the network, these tasks for nodes become more and more.

Also, with increasing congestion in the network, these tasks for nodes become more and more.

But sharding technology with its new solutions reduces the computing load by dividing or partitioning the network into smaller parts. By using this tactic, each node no longer needs to execute all the code of the network and only executes the code that is related to its part. Therefore, the nodes can perform calculations in parallel with each other, and as a result, it increases the network capacity in the nodes of the scale network.

To achieve consensus between network nodes, the NIR protocol uses a PoS system. With a PoS system, nodes wishing to validate a transaction must consider their NEAR tokens for participation. Token holders who don't want to set up a node can delegate their stake to validators of their choice.

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Is NEAR currency worth buying?

Although NEAR digital currency is still in the early stages of its development, it has recently been included in the list of top 20 digital currencies, and this has caused many people to monitor its progress before making a big investment. The way to buy Nair is also not complicated and you can easily add it to your property.

However, the signs are telling, and the Nair currency looks set to consolidate its position in the market if this trend continues. In addition to what we have said, according to analysts, there are other reasons for the future success of this currency:

• More than 40 million total transactions
• More than 1 million accounts in the network
• More than 1000 people work monthly based on the NEAR protocol
• More than 200 projects in progress
• More than 200 independent decentralized organizations

NEAR token has the potential to be more profitable than imagined and become one of the best digital currencies of Web 3.0 to buy. But with all this and considering the high risk of today's cryptocurrency market, it is better to do your analysis before buying and enter with a strategy.

❓ So what are your thoughts about this protocol? Is NEAR going to change the cryptocurrency's ecosystem? Will it provide a new platform with fewer issues?