It is not a secret that we live in an age of new technologies and implement them in all spheres of life. Still, they are especially for progressive internet users shifting their business to blockchain technology. Blockchains that conduct smart contracts and many platforms operate on them nowadays.
Despite the rapid popularity growth of decentralized application platforms, there are still some limitations and challenges that progressive newcomer like NEAR protocol faces today. So, what is Near protocol, is it secure, and whether it has conducted a Near Smart Contract Audit? First, let’s try to clarify it.
What is NEAR Protocol?
The NEAR protocol has been created by developers and is an Ethereum competitor focused on user experience. The NEAR tokens are intended to cover the transaction fee and the storage of the Near cryptocurrency platform. The NEAR Blockchain uses hardening technology that enables scale. Known as the Near Protocol, this blockchain was conceptualized to serve community cloud computing. The project has been designed as a platform to host distributed apps and is currently aiming to compete against Ethereum and other smart contracts like Polkadot.
As in most blockchains, there is also a native utility token called ‘NEAR.’ It’s an incentive that can be generated on NEAR’s network and powers transactions and NEAR’s various smart contracts. As a community-driven platform, NEAR token holders have access to governance of NEAR’s network or have validation votes. The Governance forum currently focuses on discussions on developing and marketing the Near product and encompassing the NEAR ecosystem.
Near Protocol: How Does It Work?
The benefit of Near Protocol is that it enables developers and users to quickly and widely adopt the protocol. Thus developers and customers can create open-source software and decentralized applications capable of cash flow generating and storing data. In addition, several sharding solutions ensure efficient Near protocol work:
- Nightshade provides sharding technology to reduce user fees. It allows participating nodes to keep some part of the Near platform data. Moreover, distributing segments across network participants contributes to a more efficient way to retrieve network data, scalability, and faster processing of transactions while decreasing transaction fees. It is beneficial for security as nodes process data to the main network, and participants are responsible for their blockchain segment, not a whole network.
- Rainbow Bridge is an app that lets network transactions with Ethereum. If the user wants to transact from Ethereum to the Near crypto platform, he must deposit Ethereum smart contracts. Then Ethereum locks these tokens and mints on Near as original Ethereum digital assets.
- Aurora is another two scaling solution that runs on a Near protocol used by developers aiming to launch Ethereum dApps on Near’s ecosystem. Aurora is constructed applying Ethereum’s coding technology called Ethereum Virtual Machine, which serves as a cross-chain bridge that allows developers to tie Ethereum smart contracts and digital currencies flawlessly.
Moreover, this protocol aims to overcome problems that predecessors had to face, like system and organization design which were pitfalls for scalability and usability. The Near Protocol runs on PoS Proof-of-stake) the mechanism, which is called Thresholded PoS. The idea of such a system is to involve many participants to support a blockchain network. Thus it assists in decentralization and security and develops a fair reward distribution system for consumers.
Is Near Smart Contracts Secure?
Since we have entered the era of Web 3, presenting the future iteration of the Internet, commonly known as decentralized web, this latest web application platform uses distributed ledger technology. A key aspect of Web3.0 is the empowerment of centralized finance (Defi). DeFi is popular among startups and businesses due to its benefits and advantages. One of which is security.
As it is known, Near protocol is still developing. As a result, some issues may require improvement and upgrading. But according to CoinDesk, Near Protocol’s Rainbow Bridge has proved its reliability. Attackers tried to exploit Rainbow Bridge, which allows token exchange between different networks, and conduct a fake transaction, which was detected. So, such an unsuccessful attack cost them 5 ETHER or near $8,000.
Why is it Worth Choosing the NEAR Protocol?
NEAR offers progressive user experiences. The NEAR’S environment-friendly design is perfect for supporting the upcoming rapid growth in Digital Markets. Sharding allows more efficient retrieval of network information and scaling of the dApp in the Defini Platform. NEAR Protocol applies proof-of-stake election mechanisms, also known as threshold PoS. Therefore, the underlying blockchain network is set up for participants to have many users. There are some other reasons to select Near protocol:
- Cost-effective. This network requires users to pay 750x fewer transaction costs, significantly below average third-generation cryptocurrencies. In addition, NEAR supplies 30% of transaction fees, thereby supporting ecosystem growth.
- Sustainability. NEAR provides a highly reliable POS network to achieve sustainable network use and make it extremely efficient for executing various applications such as Blockchain solutions.
- Interoperability. A component such as an EVVM / Rainbow bridge assists NEAR protocols and ensures interoperable use cases among different independently developed cryptocurrencies, thus making them usable in their ecosystem applications.
- Secure. The NEAR protocol carries an active Validating Network that guarantees integrity while providing maximum security in securing the ecosystem’s ecosystem.
- User-friendly. This protocol generates an accessible and easily accessible username applying scoped DNS patterns. Its functionality makes this platform incredibly user-friendly for all users. So, incorporating human-readable names of accounts instead of commonly used cryptographic wallet addresses allows interaction with smart contracts and dApps, avoiding using crypto wallets.
In addition, Near is in the top 20 cryptocurrencies. Even though it is in the early stages of development, it is rather promising since it generally performs over 40 million transactions. Moreover, more than 1,000 people trust Near protocol and build on it monthly.
Conclusion
Near protocol is focused on decentralized nature and sharding techs to provide scalability and security. Moreover, such benefits as low-fee and fast transactions, interoperability, sharding solutions, and many others make it rather promising. But, in any case, you should investigate all possible risks before investing in any crypto.
FAQ
NEAR Protocol is a decentralized app platform (dApp) based on Ethereum. The NEAR token is used to pay transaction fees and data storage at the Near Crypto platform.
The NEAR Protocol price projection for 2028 year is very optimistic. Despite the high volatility in cryptocurrencies, the NEAR Protocol has been considered the best investment choice over the next six years. In achieving this, NEAR could hit $33 in 2028.
It uses the NEAR protocol, which uses native tokens called NEAR. The user pays fees for the transaction, runs the application, and pays for storage. Applications on the NEAR network must pay data storage charges in the NEAR Protocol for all information kept in the network and computation performance.
NEAR Protocol announced that it had detected and exposed security weaknesses that could allow using user wallets’ seed phrases.
