It is a programmable blockchain and distributed computing system based on the mechanism of Proof of Stake (PoS). The blockchain gives developers and other users a unique platform to build and deploy decentralized applications (DApps). The “Ethereum Killer”, thanks to its advanced technologies, allows users to develop smart contracts and DApps. It is said to be safe enough to power a large number of blockchain applications built for games, cryptocurrencies, identity systems, and other apps and programs. This project is user-friendly and simple for non-blockchain developers to build, deploy, and manage DApps on its network. Using a sharding technology ensures infinite scalability resulting in high usage and adoption of DApps. The protocol has an open-source codebase, which lets developers contribute to its network. On the network, transactions are in batches and executed on different shards.
If you are new to blockchains and the crypto space, or you are a developer looking to increase your knowledge on the pros and cons of NEAR Protocol, here is an article providing information on NEAR Protocol and some of its advantages and disadvantages.
Features of NEAR Protocol
The network’s shards operate as distinct blockchains with their validators and resources for verifying transactions and producing blocks. They communicate and interact with the primary NEAR blockchain and other blockchains. The blockchain is more efficient and speedier than Bitcoin and Ethereum. Its Doomslug enables validator nodes to create blocks in succession. With the Rainbow Bridge from ETH to NEAR, it is compatible with Ethereum. It was created by a team of professional and experienced engineers. There are a total of 1 billion NEAR available. It was designed to enable blockchain developers to construct distinct DApps that are scalable and sustainable.
Mining on the network
NEAR tokens cannot be mined as a result of their consensus process (PoS). This approach makes it difficult for attackers to attack a network or validate bogus information. To generate and validate blocks, NEAR validators invest a set amount of their tokens. They are compensated with block rewards derived from transaction and storage fees, token supply inflation, and other factors. On the network, there are three sorts of validators. Chunk generators gather transactions and distribute blocks to shards. As its name indicates, block producers create new blocks from old ones. The correctness of state transitions across multiple blocks is examined by fishermen.
To participate in the validation process, one must first stake NEAR tokens. In most cases, the minimum amount of tokens necessary is determined by the total number of tokens staked by other validators operating inside the same shard. This is also how the portion of the block reward that is handed out every 12 hours is determined.
Note that when a validator misbehaves, such a user may lose a part of their stake. Also, validators and delegators can choose to unstake at any time. If a user lacks the required funds to buy enough NEAR tokens to secure a seat, they can request for delegation of tokens. Delegators do this by staking pools, earning them a part of the block rewards from validators they stake.
Advantages
The following are some pros of the NEAR Protocol:
- It allows users to easily build, deploy, and manage DApps.
- It uses advanced sharding technology to make the network scalable, in theory.
- NEAR is both open-sourced and decentralized.
- Smart contracts work easily with WebAssembly Virtual Machine (WASM)
- It has lower gas fees than Ethereum, etc.
Disadvantages
The following are some cons of using the blockchain:
- It competes with larger blockchains like Ethereum.
- There is high competition for it in the crypto space with the emergence of newer technologies.
- There is a high transaction fee involved.
