Another Dapp platform is the third generation after Bitcoin in blockchain technology, NEAR Protocol cryptocurrency. Like Solana, this is also what some people call Ethereum killer.
A brief overview of the NEAR protocol is a cryptocurrency in blockchain technology that uses smart contracts. This platform is open-source facilitating for Dapp developers. The platform is also interoperable with the Ethereum blockchain.
The NEAR protocol cryptocurrency currently ranks 67th on Coinmarketcap with a value of $ 3.52 with a market capitalization of 1.3 billion USD at the time of writing. Furthermore, we will discuss the NEAR protocol cryptocurrency.
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- 1 NEAR protocol explained
- 2 What is a NEAR protocol?
- 3 NEAR protocol founder and history
- 4 How does NEAR protocol work?
- 5 NEAR protocol token
- 6 NEAR protocol wallet
- 7 NEAR protocol staking
- 8 How to buy a NEAR protocol token?
- 9 NEAR Protocol price prediction
- 10 Is NEAR protocol a good investment?
- 11 Final thought
NEAR protocol explained
The first impression when you visit the official website of the NEAR protocol cryptocurrency, you may find a funny meme image. Not like the Doge, but more like three cartoon Kanguru. Perhaps the developer likes cute animal cartoon pictures and embeds them on their official website to attract attention.
What is a NEAR protocol?
Forget the cartoon, we come back to the question what is the NEAR protocol cruptocurrency?
As mentioned earlier, the NEAR protocol is a Decentralized application platform, which is on the NEAR protocol blockchain network.
NEAR Protocol Blockchain is designed to make applications usable on the web. The NEAR protocol runs permissionless on many machines around the world, safely to create a robust, decentralized data layer for the new web.
This platform uses the Proof of Stake consensus in network governance which they call Nightshade. With a mechanism called Doomslug to process more than 100,000 transactions per second. They use a method of measuring transaction costs known as ‘yocto’ because of their very low transaction fees.
NEAR protocol founder and history
The development of NEAR Protocol cryptocurrency was started in 2018 by two friends who each have work experience in the big companies Microsoft and Google. He is Alexander Skidanov and Illia Polosukhin.
The two of them met while in a Y Combinator program, which this program contributed to the kicker starting of big companies such as Coinbase, Reddit, and many more.
Alexander Skydanov has experience as a software engineer at the company Microsoft. Besides that, he is also a technical director at MemSQL.
Meanwhile, Illia Poloshukin is experienced as an engineering manager at Google in the Google Research department which is currently known as Google Translate.
After the two of them met in the Y contributor program, they then started to build the NEAR protocol, even in just two to ten days, they managed to gather the time for this protocol developer.
Developer NEAR Protocol
Maybe unlike other platforms, the NEAR protocol development team totals 54 team members including the founder.
All the team members have different backgrounds, but most of them are professionals with higher education, as engineers and some are entrepreneurs.
With so many members of the time, it is not surprising that it is because they are interested and in the beginning before starting anything, founders Alexander Skidanov and Illia Polosukhin managed to secure a fundraiser of 15 million dollars.
Although the team members have different backgrounds, most of them are experienced in blockchain technology and finance.
How does NEAR protocol work?
In simple terms, the way the NEAR protocol works is to provide a community-operated cloud infrastructure to deploy and run decentralized applications.
The NEAR protocol uses Proof of Stake consensus using the sharding method. This method makes it possible to use the same database size but contains more information because the tables are made smaller.
The NEAR protocol platform via the NEAR rainbow bridge can be operated to connect with the Ethereum network.
The mechanism for this action is called Nightshade. This method is considered effective for increasing efficiency. Because only a snapshot of the current state of each shard is added to the block on the NEAR blockchain.
And each shard resides in its own set of validator nodes. Each time a new block is produced it will broadcast its fractional status to the network.
Another important component called Doomslug, Which can complete transactions of up to 100K transactions per second. With Doomslug the Validator, in turn, generates blocks in each epoch which is 12 hours long.
Block rewards are NEAR from inflation which is around 5% per annum, of which 90% of each block reward goes to staking validators and staking pool delegates. The remaining 10% goes to the NEAR treasury managed by the NEAR Foundation.
NEAR protocol token
The native token of the NEAR protocol is NEAR, in general, its function is the same as other cryptocurrencies such as Ethereum and ETH. NEAR tokens have functions in the NEAR protocol ecosystem to:
- Pay fees for processing a transaction and storing data.
- To run the validator as part of the participation in the network for a staking process.
- To participate in voting for network governance and how the networks will be allocated.
NEAR tokens are used in network ecosystems that allow for economic coordination across network participants.
NEAR Protocol token distribution
The NEAR Protocol was launched for the first time on April 22, 2020.
At press time, the number of NEAR tokens in circulation has reached 38% of the total tokens created, 1 billion NEAR.
The distribution of NEAR tokens with a maximum supply of 1 billion NEAR has been made on Genesis of 1 billion. The distribution is 5% of the additional supply issued annually to support the network as a reward.
The reward is divided by 90% for the validator (4.5% total) and 10% for the treasury protocol (0.5% total). 30% of the transaction fee to pay the rebate for contracts interacting with the transaction. And the remaining 70% is burned.
NEAR protocol wallet
Creating an account wallet is necessary to store NEAR tokens which are to use receive and transfer tokens that are useful for user needs in the NEAR protocol ecosystem.
There may not be many wallets that support NEAR tokens because this is a new one, but you can use Trustwallet and Math wallets.
But if you use the wallet provided by the NEAR protocol, you can also create a NEAR ID account to create a NEAR wallet via the NEAR wallet.
Each wallet has a unique name, but users are allowed to create multiple wallets, just like a Google account, where users can use one account to access several third-party services.
Another option is a web wallet, where the NEAR protocol also provides a web wallet that is accessed at this URL.
However, it is preferable to store cryptocurrency in cold wallets, not on platforms or exchanges, the reason is that hackers attack more exchanges.
NEAR protocol staking
The NEAR protocol uses Proof of Stake consensus, where NEAR token holders can participate in a staking program that will later receive NEAR token rewards when successfully creating a new block.
The calculation of the reward from the NEAR protocol staking program depends on the number of tokens that are staked.
To participate in the staking program the role of NEAR requires a wallet because withdrawals will use the wallet address.
The amount of staking rewards received will depend on the total number of tokens staked on the Network. And the number of tokens used for staking.
A simple example, on the network there are 1000 total tokens at stake. Then there is one validator staking 100 tokens. Then the reward for the validator is 100 / 1000x 100% = 10%. So the validator gets 10% of the 1000 tokens staked.
But if 2,000 is at stake. The reward received is 5% of the total prize.
Five important things to staking NEAR
To participate in the staking of the NEAR protocol, the platform recommends joining the Discord community. Which is useful for communication with a fellow participant. The five things that should know is:
- Where to stake: you can use the official NEAR wallet, or stake using the Dokia Capital Staking app, and the Moonlet Wallet.
- How to Stake: either choose through an existing locked contract or transfer the token from the exchange to your personal wallet. This requires at least 35 NEAR ties to your lockout contract, which serves for storage and gas costs until the vesting is complete.
- Decentralized Staking: it’s best to place bets on the smaller pool instead of all the bets on the largest pool. For further discussion, inquire at Discord NEAR.
- Choosing a Validator: being a validator requires time and infrastructure qualifications and professionalism. Validators that offer zero fees are not necessarily good.
- Unstaking: this is the process of releasing tokens in stake, and the minimum staking period is 12 hours. However, to withdraw funds from the pool to your wallet, you have to wait for about two days. The waiting period is also useful for those who want to remove the stake and continue to other Validators.
NEAR Protocol block explorer
NEAR protocol block explorer is useful for tracking the progress of transactions in the NEAR ecosystem. To find information related to Account ID, transaction hash, block hash or block high, by typing in the search box then press the search button.
In the explorer tab, there are five dropdown menus, namely Accounts, blocks, transactions, Nodes, charts, and stats.
How to buy a NEAR protocol token?
To buy NEAR tokens the easiest is through an exchange, the way you have to register on an exchange that provides NEAR tokens. This step may require documents required for the KYC and AML verification process.
These documents include country ID, bank statement, and selfie photo holding country ID.
Where to buy the NEAR Protocol token?
Maybe at this time, there are not many exchanges that list NEAR tokens. Because this is still new and in the stage of further development.
To buy NEAR tokens, you can go through Binance, and Huobi Global. On the Binance exchange, buyers can choose the NEAR/USDT token pair. Which is currently the pair’s daily volume reaches 44 million dollars.
Whereas in Huobi Global, users can buy NEAR tokens using USDT, or on the NEARUSDT pair. The average daily volume trading of up to 5 million NEAR tokens on this exchange, with price at the time of writing $ 3.23
NEAR Protocol price prediction
The NEAR protocol cryptocurrency is still relatively new, but several popular forecasting sites such as wallet investors have made predictions for NEAR. How do they predict, will the price increase or decrease in the future?
- Wallet investors predict NEAR tokens by the end of 2021 could reach $ 16,578 from the current price of $ 3,232. For the next five years, they predict a price of up to $ 60,560.
- Gov Capital predicts the price of NEAR tokens can reach $ 17.84 from the current price for the next year or May 2022. They also predict the price in 2023 could reach the range of $ 26 – $ 30. 2024 in the range of $ 37- $ 49. 2025 in the range of $ 43- $ 59.
- The cryptocurrency price prediction predicts the NEAR price by the end of 2021 to reach $ 19.78. Then 2022 hit $ 61.92. 2023 reaches $ 69.86. 2025 reaches $ 156. 2030 reaches $ 341.
- Digitalcoinprice predicts the NEAR price by the end of 2021 to only reach $ 4.81. By 2022 it will reach $ 5.64. 2023 reaches $ 6.69. 2024 reaches $ 7.88. The year 2025 is $ 9.97. 2026 reaches $ 11.08. 2027 reaches $ 10.05 and 2028 reaches $ 14.28.
In my opinion, of the four predictions that are quite possible is a prediction from Digitalcoinprice. Because to make prices jump dramatically requires a high volume of demand. Meanwhile, the NEAR protocol cryptocurrency is still quite new and is in the stage of further development.
Is NEAR protocol a good investment?
If the analysis is based on technical past price data, the NEAR token is currently worth $ 3.26 at the time of writing. Drop 3.68% today. NEAR price since October 2020 until now is wavy. Significant but gradual gains in a weak bulls market.
A drastic increase has only occurred from February to March 2021. After that, the price returned to wavy, fell, and then rose again, but did not succeed in forming new highs.
If you refer to the analysis from Cointobuy.io, the NEAR token gets a rating of 4 in terms of security. The reason is that the market capitalization has increased, reaching more than 1 billion USD.
The NEAR token came in 302 out of 4295 for the security ranking according to Cointobuy.
The NEAR protocol team is still struggling to develop the platform and ecosystem to attract more investors. Because of the competition for the cryptocurrency industry, many new platforms have emerged that offer solutions to problems that have previously arisen.
However as investment diversification, NEAR tokens may be quite attractive because they are still new, and the prices are still low. If a successful team wins the competition, it is not impossible that the score will be much higher in the next few years.
This is not investment advice, each investor bears the risk and is responsible for his own investment.
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