Altcoin Spotlight: Near Protocol
Each and every day new cryptocurrencies are invented. Some are worth your time, but most are not. So how do you know which alt coins are worth an investment and which should be avoided?
This week we talk about the Near Protocol, a technology which is quickly climbing the charts and becoming one of the more popular cryptocurrencies. But is it worth an investment? Or is this a project to put on your ‘do not buy’ list? Read on to find out.
What is Near Protocol?
Near Protocol is a software in the cryptocurrency world which was invented to make scaling blockchains easier. What it does is use a process called sharding to split a network into segments. This way, the nodes (or computers) on that network only need to process one segment of transactions rather than the entire network.
Currently, most blockchains work on a consensus mechanism. What this means is that all nodes on the network must come to a consensus before a transaction on the network is approved. While this allows blockchain to self-govern without needing oversight, it also can take lots of time for a consensus to be reached.
Near Protocol aims to take the idea currently used by Amazon Web Services and make a decentralized version of it that any blockchain can adapt.
How Does Near Protocol Work?
Near Protocol itself is a blockchain and it is run on a Proof of Stake consensus mechanism called DoomSlug. DoomSlug works by running two rounds of consensus. On the Near Blockchain, besides sharding, another process called NightShade is used to split up the distributed ledger between nodes. This way no single node needs to contain the entire distributed ledger thus speeding up the entire system.
Near Protocol contains a Rainbow Bridge, which allows it to connect with the Ethereum blockchain. While it doesn’t connect directly, users can create smart contracts or dapps on Ethereum and have them execute on the Near Protocol. This is done by locking the Ethereum in a smart contract while it is on the Near Protocol and issuing tokens to represent these ETH on the Near platform. When the operation is complete, these created tokens can be burned and the ETH released from the smart contract.
Developers can also link their already developed Smart Contracts to Ethereum using the aurora bridge.
Who Invented the Near Protocol?
Near Protocol was founded by Erik Trautman and invented by Illia Poloshukin and Alexander Skidanov in 2017. Poloshukin is a Ukrainian software engineer who holds a Masters in applied math and computer sciences. Skidanov on the other hand is Russian with a masters in computer sciences. Both have worked for large companies like Google and Microsoft in the past before branching out to start their own project.
The Near Protocol is overseen by the NEAR Foundation in Switzerland and it is a non-profit organization.
Should You Invest in Near Protocol?
Overall, the Near Protocol is a great idea. It solves a problem that many cryptocurrencies are facing as the distributed ledgers and networks grow larger and larger. The only problem is, Near Protocol isn’t the only project pursuing this technology.
As mentioned above, Amazon Web Services is the centralized version of this blockchain. While decentralized is always better, many users don’t see it that way as they prefer to have government oversight when it comes to their internet work. They are allowed to feel this way because Near Protocol is decentralized, meaning you are trusting the creators and the code. While it’s highly unlikely that this is a rug pull scheme like Squid Games Token, there is still a possibility.
No matter what project or technology you invest in, you must do your research. One downside about the Near Protocol is that there doesn’t seem to be a lot of research out there just yet, even though the project has been around since 2017. Although this can happen because the project is simply smaller, it is a little concerning.
The creators are named however, and it is possible to find their presence online. This is a good thing, because it means they aren’t likely to run with investors’ money. But you have to also consider that the cryptocurrency world is highly competitive, and there is no saying that this protocol will be the one that developers everywhere choose to work with.
You especially have to consider that Ethereum is undergoing its own transformation right now to make it faster without an additional protocol. If the final project is fast without needing Near, then this project might be out of business. But, if you truly believe in the technology behind this protocol, you may find that it is a rewarding investment.
Plus, the NEAR Foundation behind the coin is a non-profit, which is always a good thing in the cryptocurrency world. No matter what you decide, know that any investment in cryptocurrency is risky and that you could lose every penny.
Where Can You Buy Near Protocol?
As of the writing of this article, there are a few exchanges where NEAR can be traded. They are:
- Huobi Global
Do note that NEAR/USD pairings are not available on most of these sites. Rather you will first have to purchase ETH or USDT.
Final Thoughts on Near Protocol
All in all, there are much worse projects in the cryptocurrency world than Near Protocol. If you do decide to invest in them, do so after research and because you believe in the project. While this project is likely not a scam, there is still a chance that it doesn’t make it in the cryptocurrency world because the competition is fierce.
What to learn more about investing in cryptocurrency, specifically alt coins? At MintDice.com we are committed to your education when it comes to alt coins and a couple times a month we take a look at different alt coins which are taking the charts by storm. Check out our blog to learn more.
This article was originally posted to the MintDice.com Blog.