Complete Guide to NEAR Protocol (NEAR) - The Hidden Gem of the Next Generation Blockchain

 

NEAR Protocol (NEAR) Complete Guide - The Hidden Gem of Next-Generation Blockchain

Hello! Are you curious about NEAR Protocol (NEAR)? Today, I'm going to tell you in detail about NEAR Protocol, which I personally used and experienced. I'll explain it in an easy way so that even those who are new to cryptocurrency can understand it. In fact, at first, I thought, ""It's just another blockchain,"" but when I used it myself, I realized that it has many special features!

NEAR Protocol (NEAR) Introduction - Why is it special?

NEAR Protocol is a blockchain-based platform that aims to help developers easily create decentralized applications (dApps). This platform provides high scalability and a user-friendly interface, making blockchain technology more accessible.

Near Protocol specifically supports smart contracts, which enable various services and applications. What impressed me the most was that they paid a lot of attention to user experience (UX). Existing blockchains are technically excellent, but they are too complicated for general users to use.

Actual experience: When I first used Near Protocol, the thing that surprised me the most was that the wallet address was in a human-readable format, like ""alice.near"". As someone who was used to complex addresses like ""0x1234abcd..."", it felt really innovative. It definitely reduces the worry of accidentally sending to the wrong address!

The interesting birth background and history of Near Protocol

Near Protocol was founded in 2018 and has grown rapidly since then. The project was developed to overcome the limitations of blockchain technology, and boasts high transaction speeds and low fees in particular.

The founders are mostly from big tech companies such as Google and Facebook, and wanted to introduce the usability of existing web services to blockchain. Their vision was to create ""a service that can be used naturally without even knowing that it is using blockchain.""

Near Protocol secured funds through several funding rounds, and many developers and companies became interested in this platform. Especially since 2021, it has shown explosive growth, and it has received even more attention because it coincided with the DeFi and NFT boom.

The origin of the interesting name: Do you know how the name ""NEAR"" came about? It doesn't simply mean ""close"", but rather means that it wants to be a ""blockchain close to users."" When I actually used it, it really seemed to live up to its name!

The innovative operating principle of the NEAR Protocol

The NEAR Protocol uses sharding technology to increase the scalability of blockchains. Sharding is a technology that divides data into several small pieces and processes them, which can greatly improve transaction speed.

To put it simply, if existing blockchains process all calculations with a single calculator, NEAR uses multiple calculators simultaneously to speed up calculations. So theoretically, it can process 100,000 transactions per second!

In addition, the NEAR protocol introduces a user-friendly address system, allowing transactions to be made with names that are easy to remember instead of complex addresses. I think this is a truly innovative idea.

Technical Features: One of NEAR's biggest features is the sharding mechanism called ""Night Shade."" The name is unique, right? Thanks to this technology, the network has a structure that becomes faster as it grows. It's the exact opposite of general blockchains that slow down as the number of users increases!

NEAR Protocol's various applications

NEAR Protocol can be used in various fields. I'll introduce it with my own experience:

Gaming field: Many P2E (Play to Earn) games are being developed on NEAR. They are especially popular among gamers who frequently trade game items because the transaction fees are low. The game I played called ""NEARlands"" was really fun!

DeFi service: There are Ref Finance, a NEAR-based DEX (decentralized exchange), and lending platforms. It is especially advantageous for small investors because DeFi services can be used at much lower fees than Ethereum.

NFT Marketplace: NFT platforms such as Paras and Mintbase are operated on NEAR. In particular, tools that help creators easily create their works as NFTs are well-developed.

Social Media: Web3-based social media platforms are also being developed. The goal is to ensure users' data ownership while allowing them to use them conveniently like existing SNS.

Personal Usage Experience: I minted NFTs for the first time on NEAR. It was really fun to experiment with because the gas fee was almost zero. On Ethereum, the minting fee alone costs tens of thousands of won, but on NEAR, it only cost a few hundred won. Thanks to this, I was able to try it out multiple times without any burden.

Complete analysis of exchanges that support the NEAR protocol

The NEAR protocol can be traded on several cryptocurrency exchanges. I will introduce the exchanges that I have actually used:

Binance: It has the largest trading volume and the best liquidity. It offers various trading pairs and also provides a staking service, so you can earn profits just by holding NEAR. You can receive staking rewards of about 8-12% per year.

Huobi: It is a popular exchange in Asia, and the NEAR trading volume is also significant. It is especially suitable for those who want to trade more aggressively, as it also supports futures trading.

Bitfinex: An exchange used by many professional traders, it provides advanced chart analysis tools. It is recommended for those who want to analyze the price of NEAR in detail.

Coinbase: It is popular with US users and is well regulated, so it is reliable in terms of safety. However, the fees are a bit higher than other exchanges.

Exchange Selection Tips: When choosing an exchange, check the withdrawal limit and KYC procedure as well as the fees, trading volume, and security. I mainly trade on Binance, and I transfer the long-term storage to my personal wallet and stake it. This way, you can get higher staking rewards!

Active and warm NEAR Protocol community

NEAR Protocol has a really active and warm community. Compared to other blockchain communities, the NEAR community is especially welcoming to new users.

Official forum and Discord: There is a space where developers and users can communicate, share information, and discuss new ideas. When I first started NEAR, I asked questions because I didn't know something, and they answered me very kindly.

Social media activities: They are also very active on Twitter, Telegram, Reddit, etc. In particular, the official NEAR Twitter is worth following. You can quickly get important updates or event news.

Global Community: NEAR has a global community, so you can communicate with someone 24 hours a day. It's really interesting because you can get different perspectives by talking to people from different time zones.

Community Participation Experience: I've attended the NEAR Korea Community Meetup, and it was really impressive. People from developers to general investors gathered and talked about NEAR, and it was like people sharing the same dream. Thanks to that, my love for NEAR grew deeper.

NEAR Protocol Wallet - Which One Should I Choose?

You need a wallet to use NEAR Protocol. Fortunately, NEAR provides some really easy-to-use wallets.

NEAR Wallet (Official Wallet): This is the official wallet for the NEAR protocol, and can be used directly from a web browser. It's the most basic and safe choice. I recommend it to first-time users. The interface is really clean and intuitive.

MyNearWallet: This is a wallet developed by the community, and it offers more advanced features. It makes staking and DeFi service integration more convenient.

Meteor Wallet: This is a wallet in the form of a browser extension, and can be installed and used on Chrome or Firefox. It's similar to MetaMask, so it's familiar to existing DeFi users.

Hardware Wallet Integration: Hardware wallets like Ledger also support NEAR. When storing large amounts, it is safest to use a hardware wallet.

Wallet usage tips: I use MyNearWallet for everyday use and Ledger for storing large amounts. And the biggest advantage of the Near wallet is that the address is in the form of ""yourname.near"". It is really easy to remember and the possibility of making a mistake is reduced!

Things to know when investing in Near Protocol

There are some important things to keep in mind when investing in Near Protocol. I will share with you what I have learned from my own experience:

Understanding market volatility: Near, like other altcoins, is more volatile than Bitcoin. It is common for prices to fluctuate by 10-20% per day, so it is important not to be emotionally swayed.

Tracking technical developments: NEAR is still a developing project. News such as the full implementation of sharding and the launch of new dApps can have a big impact on the price. Get into the habit of checking the official blog or GitHub regularly.

Monitoring community activities: It is also important to keep an eye on developer activities, community size, and actual usage. You should check whether the platform is actually growing rather than just looking at the price.

Setting an appropriate investment amount: It is recommended to set the investment amount according to your financial situation and avoid excessive investments. I have about 10% of my total portfolio allocated to NEAR.

⚠️ Investment Notes: I made one mistake when I started investing in NEAR. I invested too much money too quickly and got stressed out by short-term fluctuations. Now I try to invest in small amounts and maintain a long-term perspective. Don't rush and take it slow!

NEAR Protocol's Future Outlook

It's not easy to predict the future of NEAR Protocol, but there are some positive factors:

Technical Advantages: Once the sharding technology is fully implemented, NEAR can become a strong competitor to Ethereum. In particular, I think it is already ahead in terms of user experience.

Developer-friendly environment: It supports Rust and JavaScript, so existing web developers can easily participate in blockchain development. This will be a great help in expanding the ecosystem.

Corporate partnerships: More and more companies are partnering with NEAR. As these practical uses increase, I expect the value of NEAR to increase as well.

Personal outlook: I think NEAR will be a huge success if it can realize its vision of ""making users not even aware that they are using blockchain."" I expect it to play an important role in popularizing Web3.

In conclusion...

This concludes my post on NEAR Protocol. At first, I thought it was simply ""another blockchain,"" but after using it myself, I realized that it really is a project with a lot of potential.

In particular, I felt that the consideration for user experience and the approach to practicality were definitely different from other projects. Of course, it is not perfect yet, but the speed of development makes me really look forward to it.

If you have any further questions about NEAR Protocol, please leave a comment! I will do my best to help you within the scope of my knowledge. Also, if you have actually used it, please share your experiences in the comments, and I will