What is NEAR Protocol (NEAR) Coin and How Does It Work?

Share This Post

NEAR Protocol is an innovative blockchain platform developed to push the boundaries of scalability and usability for decentralized applications (dApps). Powered by its native cryptographic token NEAR, the project aims to take on industry leaders like Ethereum by optimizing core functions like transaction speeds and costs. But how exactly does NEAR Protocol work and is the platform and coin worth investing in for the future? Let’s break it down.

What is the purpose of NEAR Protocol (NEAR) coin?

Near protocol coin

Founded in 2017, NEAR was created by computer scientists Alexander Skidanov and Illia Polosukhin to build a more scalable foundation for decentralized apps and services. Similar to how Ethereum hosts thousands of dApps, NEAR’s goal is to provide an open platform where developers can deploy projects without limitations on transaction throughput.

To incentivize these decentralized services and secure the NEAR network, the NEAR token plays a vital governance and utility role. Validators require a stake of NEAR coins to validate transactions and earn rewards. Applications also use NEAR to pay gas fees. This gives the coin inherent value and demand within the ecosystem.

How does NEAR Protocol (NEAR) crypto work?

Under the hood, NEAR utilizes a unique sharded architecture called “Nightshade” to boost scalability compared to first-generation blockchains like Ethereum. The network is broken into small “shards”, where each validator only processes transactions within their allotted shard. This parallelization allows NEAR to handle over 100,000 transactions per second across all shards once fully scaled.

Transactions are also finalized incredibly fast, with blocks produced every 2-3 seconds and final confirmation reaching 2.5 seconds on average. Fees are ultra-low too, hovering around $0.01 per transaction at time of writing. This level of performance makes NEAR Protocol an enticing home for consumer-grade dApps.

Does NEAR Protocol (NEAR) Token Have a Future?

Near protocol coin future
Near Protocol cryptocurrency symbol, logo. Business and financial concept. Hand with smartphone, screen with crypto icon close-up; Shutterstock ID 2086238041; purchase_order: Bloomberg; job: Bloomberg.com; client: bloomberg; other:

With over $500 million raised from major backers like Paradigm, Jump Crypto and Polygon, NEAR has all the resources and hype to survive long-term in the highly competitive smart contract market. The project has also continued to improve its technology, completing Phase 2 of the Nightshade upgrade in Q3 2022, and plans to build a cross-chain bridge to other networks in the future.

Venture funds this size typically carry an expectation of big returns, putting pressure on NEAR to succeed. Encouragingly, the platform is already host to over 1,500 dApps and counting. As long as developers flock to NEAR and usage of the network and token grows, the future does appear bright. Just make sure to DYOR before staking your futures on any crypto project!

When NEAR Protocol (NEAR) Coin Launched?

NEAR Protocol launched its mainnet and native NEAR coin in October 2020 after years of research and development. The genesis block went live on October 14, 2020 to much fanfare and media coverage within the blockchain space.

Since then, NEAR has seen steady growth of its network and strong uptake of its governance and utility token. As mentioned above, over 500 million has been invested to continually fund expansion. Though a young project, NEAR is developing at a rapid pace as it challenges more established names.

Is NEAR Protocol (NEAR) Crypto a Scam?

Near protocol coin scam

With transparent founders, a large team, and over half a billion dollars backing development from top venture firms, it would be very unlikely and illogical for NEAR Protocol to be an outright scam.

Prominent crypto leaders within the space like Da Hongfei of Neo and Changpeng Zhao of Binance have also openly voiced support for the project after due diligence. Scams don’t attract this level of investment from the smartest money in tech.

That said, crypto is speculative by nature so nothing is guaranteed. Do your own research on team members, progress reports, and use cases before deciding if NEAR is right for you. But all available evidence points to this as a promising long-term blockchain contender rather than a scam.

Is it Safe to Invest in NEAR Protocol (NEAR) Token?

For experienced crypto investors, NEAR is likely one of the safer investment opportunities in an inherently volatile sector due to its strong fundamentals and sizable backing. Just remember the usual risks still apply:

  • Only invest what you can afford to lose. Crypto remains a speculative market.
  • Wide price swings will happen. Have a long-term view.
  • Keep coins secure using a trusted hardware or software wallet.
  • Research network risks like centralization over time.

If following best practices, then YES – NEAR Protocol looks to be one of the safer crypto bets, especially for the tech-savvy who believe in its vision. But nothing in life is without risk. DYOR!

Is NEAR Protocol (NEAR) Coin Worth It? NEAR Price 2023

Near protocol price 2023

The NEAR token has seen wild volatility since its inception but remains up over its all-time lows set in late 2023. At the time of writing, the price hovers around $1.10 per coin.

With a visionary roadmap, strong funding prospects, and a dedicated team of developers working tirelessly, the future potential for NEAR Protocol is bright assuming it can successfully gain meaningful adoption over rivals.

Realistic price targets place NEAR between $3-$5 by end of 2024 if near-term goals are achieved. But longer-term, many crypto insiders believe a $10-$15 NEAR could be in play within 2-3 years as the network scales. Of course, unforeseen factors may impact upside or downside.

As with any investment, only put in what you’re willing to see decrease in value by 50% or more in the short term. Patience and belief in the tech is needed. But NEAR does look like a crypto that could provide solid returns.

Where to Buy NEAR Protocol (NEAR) Crypto?

The easiest and safest place for most users globally is large regulated exchanges. Top options include Binance, Crypto.com, Coinbase, KuCoin, and Gate.io which all support fiat onramping via card/wire and NEAR/BTC, ETH, USDT and stablecoin pairs.

Be sure to enable two-factor authentication on your exchange account for an added layer of security. Storing coins long-term in a cold storage wallet is also recommended once purchased from an exchange.

Make sure to also research how to buy and secure NEAR through the project’s own near protocol website, mobile and desktop wallets for closer interaction. Always keep personal keys and accounts safe when getting involved with crypto.

How to Sell NEAR Protocol (NEAR) Token?

Near protocol token

Selling NEAR is basically the reverse process of buying. You’ll need to deposit your tokens held in a private wallet back onto an exchange that supports NEAR trading. From there, you can place a sell order against your preferred trading pair like USDT, BTC or ETH.

Once the order fills, the exchange will credit your corresponding crypto amount or fiat funds to your exchange balance, based on the current market rates. You can then withdraw profits back to your personal bank or stablecoin wallet as desired.

Make sure to understand any transaction, withdrawal or staking fees your exchange may charge. Prices can also slip between placing your order and sale execution, so it’s wise to utilize limit orders for better control. And as always – keep accounts secure throughout the process.

How to Stake NEAR Protocol (NEAR) Coin?

Staking NEAR awards participants with network transaction fees and newly minted coins alike. It’s a great way to generate passive income from an investment. The process involves nominating your held NEAR amount to a validator currently securing the network. Choose one with a good track record for stability and uptime.

Stakers receive roughly 5-6% annual rewards paid out daily. The minimum stake is just 1 NEAR coin which can be done via the official NEAR Wallet interface. Linking your account provides control and visibility of returns over time. Staking is very “set it and forget it” for most users.

How to Mine NEAR Protocol (NEAR) Crypto?

Unlike proof-of-work blockchains like Bitcoin that rely on mining, NEAR Protocol uses a proof-of-stake consensus model where validators stake tokens to validate transactions and earn rewards. As such, it is not possible for average users to directly mine NEAR tokens through running specialized computer hardware.

Investing, HODLing and staking NEAR Protocol looks like a smart play based on fundamentals and roadmap – but DYOR remains key as with any cryptocurrency venture. Thanks to EXEcrypto, staying on top of developing projects like this has never been easier!

Related Posts

Best Crypto Launchpool Platforms for Staking in 2024

Crypto launchpool platforms have become quite popular in recent...

Best Halal Cryptocurrencies for Islamic Investors in 2024

If you're a Muslim investor curious about cryptocurrencies but...

Best Crypto Launchpad Platforms for New Projects 2024

Crypto launchpad platforms are among the most exciting innovations...

Top Halal Crypto Platforms for Islamic Finance 2024

The search for halal crypto platforms lies at the...

Best Crypto Staking Platforms for Passive Income 2024

As the title suggests, crypto staking platforms are central...

Best Crypto Referral Programs for Earning Rewards in 2024

As the popularity of cryptocurrencies continues to surge, so...