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What is NEAR Protocol and How Does It Work

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Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto and don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

Hey, welcome to today’s episode, I’ll tell you we’re almost in 150 countries now. And I’m happy to say that over 3500 cities around the world. So I truly thank you for chiming in and listening to the show and being part of everything. Today’s episode is all about what is NEAR Protocol. NEAR protocol is a layer one blockchain that was designed as a community run cloud computing platform. And that eliminates some of the limitations that have been bogging down competing blockchains such as low transaction speeds, poor interoperability, etc. This provides the ideal environment for daps and creates a developer and user friendly platform. NEAR uses human readable account names. Unlike the cryptographic wallet addresses common to let’s say a Ethereum. NEAR also introduces unique solutions to scaling problems and has its own consensus mechanism called Doomslug. NEAR Protocol is built by the NEAR collective and its community that is updating the initial code and releases updates to their ecosystem. So who are the founders of NEAR? NEAR Protocol was founded by Eric Trotman, an entrepreneur with experience on Wall Street and founder of Viking education. He also had some other co founders along the way. NEAR Protocol has an extensive team of experienced developers that includes several international collegiate programming contest gold medalists and winners. Let’s just say they have a phenomenal core team. So let’s unpack and talk about for a moment. What makes NEAR Protocol unique. NEAR uses its night shade technology to improve transaction throughput massively. Night shade is a variation of sharding in which individual sets of validators process transactions in parallel across multiple shard chains, improving the overall capacity of the blockchain NEAR Protocol also improves upon the onboarding process of other blockchains by having human readable addresses, and building decentralized applications, with similar registration flow to what users have already experienced. NEAR also has its own token. It’s called the NEAR token, and the ticker symbol is NEAR, and the total supply of nearly 1 billion tokens. NEAR Protocol launched its main net on April 22 2020, with a billion NEAR tokens created at Genesis. So how is the NEAR protocol network secured. NEAR uses a variation of the proof of stake consensus mechanism called Doomslug? Doomslug is based on two rounds of consensus, where a block is considered finalized as soon as it has received the first communication round. This allows for NEAR instant finality by having validators take turns producing blocks rather than competing directly based on their steak. They also have the NEAR foundation and it’s a Swiss based nonprofit dedicated to protocol maintenance, ecosystem funding and guiding the protocol’s governance. The protocol has also built a bridge to Ethereum allowing users to transfer ERC 20 tokens from the Ethereum blockchain to NEAR. So where can the NEAR tokens be purchased? They’re available on Binance, Huobi, FTX and some other exchanges.

I want to say that NEAR operates in a similar manner to other centralized data storage systems like Amazon Web Services, that serve as the base layer on which applications are built. NEAR is operated and maintained by a distributed network of computers. And just as AWS allows developers to deploy code in the cloud, without needing to create its own infrastructure, NEAR protocol facilitates a similar architecture built around a network of computers. And its native cryptocurrency, of course, the NEAR token. As I mentioned about the bridge earlier, from NEAR to Ethereum. NEAR Protocol includes an application called the rainbow bridge that allows participants to easily transfer Ethereum tokens back and forth between Ethereum and NEAR. By the way, in order to move tokens from Ethereum. To new protocol, a user would first deposit tokens in Ethereum smart contract.

These tokens are then unlocked, and new tokens would be created on NEAR’s platform representing the original ones. Since the original funds are held in storage through the smart contract, the process can be reversed when the user wishes to retrieve their original tokens. Let’s unpack Aurora for a moment Aurora is a layer two scaling solution built on NEAR Protocol intended for developers to launch their Ethereum decentralized applications on NEAR’s network. Aurora is built using Ethereum coding technology and the Ethereum virtual machine or EVM, as well as Cross Chain Bridge, which enables developers to link the Ethereum smart contracts and assets seamlessly. Developers can use Aurora to gain the low fee and high throughput advantages of NEAR Protocol. With this familiarity and a network of applications of Ethereum. I hope today’s episode has painted you a better picture as to what is near a lot of people are talking about near protocol right now. Its popularity has risen in the crypto community. And so if you like today’s episode, definitely like and subscribe to the podcast show your support and chime in here tomorrow for another special episode. Until then, make it a great day.

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What is NEAR Protocol and How Does It Work
By: cryptotravelsmichael
0

Table of Contents

Welcome back to another podcast episode! Today’s discussion will be about the NEAR Protocol and what it has to offer the vast world of blockchain.

What Is the NEAR Protocol?

NEAR Protocol is a public Proof-of-Stake (PoS) blockchain with smart contract capabilities that was designed as a community-run cloud computing system. NEAR was created by the NEAR Collective to support decentralized applications (dApps), and it aims to contend with Ethereum as well as other smart contract-enabled blockchains such as EOS and Polkadot.

NEAR is NEAR’s native token, which is utilized to pay for transaction fees and storage. Token holders that engage in attaining network consensus as transaction validators could also stake NEAR tokens.

The NEAR Protocol aims to create a platform that is both developer and user pleasant. NEAR has included features such as human-readable account names rather than cryptographic wallet addresses, as well as the capability for fresh users to engage with dApps and smart contracts with no need for a wallet.

Mintbase, a non-fungible token (NFT) minting system, and Flux, a protocol that enables devs to design markets depending on assets, products, real-world events, and more, are two projects built on NEAR.

NEAR Tokens

The NEAR token is mainly utilized to cover transaction fees and as collateral for blockchain data storage. NEAR tokens are also used to reward numerous blockchain stakeholders. Transaction validators obtain a NEAR token reward per epoch in exchange for their efforts, which equates to 4.5 percent of the total NEAR supply on a yearly basis.

Developers that construct smart contracts also get a cut of the transaction fees generated by their contracts. The remaining transaction fees are burned, enhancing the NEAR token’s scarcity. NEAR has additionally constructed a protocol treasury, which gets 0.5 percent of the total NEAR supply each year in order to participate in ecosystem development.

What Does It Have To Offer?

By breaking or dividing the network into shards, sharding reduces the computational strain. With this strategy, each node is only required to perform the code that is related to its shard, allowing shards to perform computation in parallel, increasing the network’s capabilities as the quantity of nodes grows.

NEAR employs a point-of-sale (PoS) approach to reach network-wide consensus. To be eligible for involvement in PoS, nodes who want to be transaction validators should stake their NEAR tokens. Holders of tokens who do not want to run a node can transfer their stake to validators of their preference.

Every epoch (about every 12 hours), NEAR chooses validators using an auction method, and validators with bigger stakes have more impact on the consensus protocol.

Certain validators are in charge of validating “chunks,” which are collections of transactions from several shards, whereas others are in charge of creating blocks, which include chunks from all shards. Other nodes, known as “fishermen,” monitor the network for harmful activity and report it. A validator’s stake will be reduced if they behave improperly.

NEAR Protocol improves upon the on-boarding process of other blockchains by having human readable addresses, and building decentralized applications, with similar registration flow to what users have already experienced.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is NEAR Protocol
  • NEAR consensus Mechanism
  • NEAR, Ethereum and The Rainbow Bridge
  • NEAR Foundation
  • NEAR Token
  • Aurora

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

NEAR Protocol is an Ethereum rival and decentralized application (dApp) platform that concentrates on development and user-friendliness.

The Near crypto platform’s native NEAR coins are utilized to pay for transaction costs and storage. NEAR is a Proof-of-Stake blockchain that supports scalability with the use of sharding technology.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

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