In this article , we will discuss Near Protocol, including its features, challenges, and future. Near Protocol is a sharded delegated proof-of-stake blockchain that aims to solve the blockchain trilemma of security, scalability, and decentralization. Near's founders raised over $200 million in funding from notable venture capital funds, such as Coinbase Ventures and A16z, with a strong focus on user and developer friendliness as well as interoperability with other chains.
Features of Near Protocol:
Near Protocol offers several features that set it apart from other layer 1 chains. It has a user-friendly web wallet that does not require extensions, with low transaction fees typically less than 0.01 US dollars and fast transactions with a 2-second finality. Near's sharding technique splits a single data set across multiple databases, allowing for parallel processing and more balanced distribution of the network according to the computational resources available. Near's nightshade night chain enables dynamic sharding, having no cap on the number of shards and being able to create and merge shards according to the network's computational needs.
Interoperability of Near Protocol:
Aurora is an Ethereum Virtual Machine (EVM) built by the Near Protocol team on the Near blockchain. Aurora runs as a smart contract on the Near blockchain, providing an Ethereum layer 2-like experience for both users and developers. It is fully interoperable with Ethereum and all its different wallets and tools. Octopus Network is another project building on Near, which increases Near's multi-chain interoperability. Octopus Network is an open permissionless multi-chain interoperable network for launching substrate-based app chains.
Near's Ecosystem Metrics:
According to Defilama, Near's total value locked (TVL) is slightly over $900 million as of January 17th. Transfers of ERC-20 tokens to the Near blockchain saw a recent uptick with the Rainbow Bridge weekly TVL percentage change at +163%, far ahead of the other bridges. The daily creation of new accounts also recently saw a significant spike to almost 400,000, along with a stepwise increase in daily transactions to over 1 million after a slow trend up from the fourth quarter of 2021.
Challenges and Future of Near Protocol:
Despite its many advantages, Near Protocol still faces challenges. Near's token is often used to pay transaction fees, used as collateral for data storage on the blockchain, and is also used to compensate a number of blockchain stakeholders. However, Near's decentralization remains a concern, as the Near blockchain currently has 89 validators, which is not enough for optimal decentralization. Nevertheless, Near's roadmap indicates that they aim to improve decentralization by increasing the number of validators to 1000 in 2023.
Conclusion:
In conclusion, Near Protocol is a promising blockchain that offers several features, such as sharding and interoperability with other chains, that set it apart from other layer 1 chains. However, Near still has challenges to overcome, such as improving decentralization, which they aim to do by increasing the number of validators. Overall, Near Protocol's focus on user and developer friendliness and its goal of achieving mainstream adoption make it an interesting blockchain to watch.
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