Near Protocol Explained: What is the Layer 1 Ethereum Killer?

In the rapidly evolving landscape of blockchain technology, Near Protocol emerges as a formidable contender, challenging established platforms like Ethereum with its innovative approach to scalability and sustainability. As a Layer 1 blockchain network, Near provides a robust platform for developers to build decentralized applications (dApps) that are faster, cheaper, and more environmentally friendly. By leveraging sharding and adopting a proof-of-stake (PoS) consensus mechanism, Near Protocol aims to revolutionize the blockchain landscape and unlock its potential for widespread adoption.

In this article, we will take a look at the main features of Near Protocol, and examine what could make it one of the main challengers to Ethereum.

The Need for Scalability and Performance on Layer 1 Blockchains

Scalability remains a fundamental challenge faced by most blockchain networks. Even after Ethereum’s implementation of “the merge” and transition to PoS, the highest TPS (transactions per second) recorded was around 111 (according to https://ethtps.info/).

Slow transaction speeds and high costs have hindered the mass adoption of blockchain technology. Near Protocol addresses these issues head-on by focusing on key considerations like transaction costs, speed, and the ability to maintain these features as transaction volumes increase.

Near Protocol: A Faster and Cheaper Blockchain

Near Protocol sets itself apart by being faster and cheaper than Ethereum and several other prominent challengers like Solana and Polkadot. With the implementation of “sharding,” Near divides its blockchain into sub-chains, each with different validators working on them.

What is Near Protocols Sharding Solution, Nightshade?

Near Protocol’s defining feature is its sharding technology called “Nightshade”. Near’s “state sharding” divides the blockchain itself into smaller parts. As Near progresses with the implementation of Nightshade, it aims to achieve “infinite scalability,” ensuring that the network’s performance remains unhindered, even with exponential transaction growth.

Sharding is a scaling solution that is used by blockchains to achieve scalability. With Nightshade Near will be able to scale to 100,000 TPS.

Near is a Proof-of-Stake Blockchain

Near Protocol uses a PoS consensus mechanism, which is much less energy intensive than proof of work. By requiring validators to stake a certain volume of tokens, PoS incentivizes good behavior and discourages bad actors. Near currently sets the number of nodes at 100, and a minimum threshold of 67,000 NEAR tokens is required to participate in block validation and earn rewards. This environmentally friendly approach aligns with the growing concerns about the energy consumption of blockchain networks.

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The Path to Becoming Ethereum’s Top Contender

While Near Protocol shows great potential, it is still in the early stages of becoming the biggest challenger to Ethereum. Competitors like Solana and Polkadot have been gaining momentum for longer, but Near’s focus on speed, scalability, and sustainability positions it as a formidable contender in the long run. The NEAR token plays a vital role in the network’s staking mechanism, rewarding validators for their contributions and anchoring the validation process.

Sustainability and Environmental Responsibility

In addition to its technological advancements, Near Protocol places significant emphasis on environmental responsibility. By partnering with carbon-offsetting companies, Near achieves “carbon neutrality,” offsetting its energy use and reducing its carbon footprint. Proof-of-stake mechanisms inherently consume less energy than traditional proof-of-work systems, making Near an attractive option for environmentally conscious users and developers.

The Near Ecosystem

When assessing the long-term viability of a blockchain, it’s important to look at the projects using the protocol to build dApps. Near has a large ecosystem and a vibrant community of developers. Crucially Near has made it easy for devs to use the blockchain, utilizing familiar coding languages such as JavaScript. Near is also EVM compatible, which means that projects can easily migrate Ethereum dApps to Near.

NEAR Protocol (NEAR)2.85

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