Near Crypto: Smart Investment Or Risky Gamble?

The NEAR Protocol is a Layer-1 blockchain designed as a community-run cloud computing platform that provides an environment for creating decentralised applications (DApps) and non-fungible tokens (NFTs). It is secured through a proof-of-stake variation consensus mechanism called Doomslug, which allows for relatively instant block confirmations. The NEAR Protocol also uses Nightshade technology, a variation of sharding, to improve transaction scalability. The NEAR token is ranked within the top 20-30 cryptocurrencies by market capitalisation. It is considered a good investment by some due to its high liquidity and volatility, as well as its ability to process an incredibly high number of transactions per second. However, as with any cryptocurrency investment, there are risks involved and the market is extremely volatile.

NEAR's price history and future predictions

NEAR Protocol (NEAR) is a layer-1 blockchain designed as a community-run cloud computing platform. It was established in August 2018 by Erik Trautman, with co-founders including AI researcher Illia Polosukhin and ex-Microsoft computer scientist Alexander Skidanov. The NEAR network is secured through a proof-of-stake variation consensus mechanism called Doomslug.

The NEAR coin launched on 14 October 2020 at $1.69 and has seen mostly positive price action since. In July 2021, the NEAR crypto price jumped above $5, and the following month, it surpassed the $10 mark. On 16 January 2022, NEAR hit an all-time high of $20.42. However, it later suffered a decline of over 90%, falling below its launch price to $1.44 on 21 November 2022.

As of 22 November 2022, NEAR was trading at $1.51, ranking 33rd among all cryptocurrencies with a market capitalisation of $1.25 billion. Despite this decline, NEAR made headlines in early November 2022 when the Binance exchange added support for the protocol and its native NEP-141 $NEAR token.

Future Predictions

Given the volatile nature of the cryptocurrency market, it is challenging to predict NEAR's future price accurately. Various platforms offer different predictions for NEAR's price in the short and long term.

• Wallet Investor (as of 22 November 2022): Suggested that NEAR was a "bad" investment, predicting that the token's price would drop to $0.10 by 2023.
• DigitalCoinPrice: Provided a more bullish prediction, forecasting that NEAR's price could increase to $3.84 in 2023, $5.13 in 2024, $6.60 in 2025, and $21.62 in 2030.
• Price Prediction: This platform's forecast was similar to DigitalCoinPrice's, predicting an average price of $5.55 in 2025 and an optimistic value of $33.55 by 2030.
• CoinCodex (as of 23 September 2024): Predicted that NEAR's price could reach $16.05 by 23 October 2024, a 227.45% increase. For the long term, they predicted a price range of $12.30 to $19.95 by 2030.
• CCN (as of 6 August 2024): Predicted that NEAR could reach $9 to $11 by the end of 2024, with an average price of $10. For 2025, they anticipated a minimum price of $14 and a maximum of $20, while for 2030, they expected a range of $8 to $12, with an average of $10.

It is important to note that these predictions are subject to change and should not be considered investment advice. The cryptocurrency market is highly volatile, and past performance does not guarantee future results.

NEAR's use cases and advantages

NEAR Protocol is a Layer-1 blockchain designed as a community-run cloud computing platform that provides an environment for creating decentralised applications (DApps) such as non-fungible tokens (NFTs). The NEAR network is secured through a proof-of-stake variation consensus mechanism called Doomslug, which allows for relatively instant block confirmations.

The NEAR network hosts the creation of other DApps, making the project a direct competitor with other Layer-1 platforms like Ethereum, Solana and Avalanche. These networks have more credibility in the community, which gives them an advantage in terms of potential return on investment. However, there is a perception that there is room for more Layer-1 networks within the crypto industry.

The NEAR network uses Nightshade technology, a variation of sharding, to improve transaction scalability. Sharding allows for a more scalable approach by splitting the blockchain transaction history so that each shard can be processed in parallel.

The NEAR token has a total supply of 1 billion tokens and a current market cap of roughly $2.5 billion, ranking it in the top 20 coins by market cap. The network launched its mainnet on 22 April 2020. Since its launch, NEAR has been used for processing transactions, storing data, running validator nodes and providing governance for the network.

NEAR's team and history

NEAR Protocol is a Layer-1 blockchain designed as a community-run cloud computing platform. It was founded by Erik Trautman, an entrepreneur who previously worked on Wall Street. Trautman also founded Viking Education. NEAR's co-founders include AI researcher Illia Polosukhin, who worked at Alphabet Inc., and computer scientist Alexander Skidanov, formerly of Microsoft.

The NEAR network is secured through a proof-of-stake variation consensus mechanism called Doomslug. This mechanism has two rounds of consensus, allowing validators to take turns verifying blocks rather than competing directly. This results in relatively instant block confirmations. NEAR also uses Nightshade technology, a variation of sharding that improves transaction scalability by splitting blockchain transaction history so that each shard can be processed in parallel.

The NEAR community, called the NEAR Collective, takes care of the initial code and releases updates. The protocol has been used as a base for several projects, including Flux and the non-fungible token (NFT) minting platform Mintbase. The NEAR network launched its mainnet on 22 April 2020 and the NEAR coin was released on 14 October 2020 at $1.69.

NEAR's transaction speed and simplicity

NEAR Protocol is a Layer-1 blockchain designed as a community-run cloud computing platform. It is built by the community, called the NEAR Collective, which takes care of the initial code and releases updates.

The NEAR network is secured through a proof-of-stake variation consensus mechanism called Doomslug. This has two rounds of consensus, where the block is finalized after the first communication round, allowing for relatively instant block confirmations. This is achieved by having validators take turns verifying blocks, rather than competing directly.

The NEAR Protocol also uses Nightshade technology, a variation of sharding, which improves transaction scalability. Sharding allows for a more scalable approach by splitting the blockchain transaction history so that each shard can be processed in parallel.

The transaction speed of the NEAR Protocol is 118 transactions per second (TPS). This makes it one of the fastest blockchains, although it has not yet achieved its maximum potential speed.

The high transaction speed of the NEAR Protocol enhances the user experience by facilitating immediate fund transfers, which are crucial for real-time financial interactions. This efficiency is a key driver in the increasing appeal of blockchain technology, especially for a growing user base seeking swift and reliable transaction methods.

High transaction speeds also foster economic efficiency. Fast transactions save time and money, making them essential for both personal and commercial success. Additionally, they are vital for the effective functioning of decentralized apps (DApps) and smart contracts, ensuring smooth operations and efficient execution.

NEAR's staking and investment potential

NEAR Protocol is a Layer-1 blockchain designed as a community-run cloud computing platform that provides an environment for creating decentralised applications (dApps) and non-fungible tokens (NFTs). It is a decentralised platform for the development of dApps, which are currently at the peak of their popularity, with hundreds of cryptocurrency solutions, including specialised software for the banking sector using them.

NEAR is a governance token used to ensure transactions in the system. It has high liquidity and volatility and employs the PoS (Proof-of-Stake) consensus algorithm. PoS is a consensus mechanism many altcoins use, and it is so popular that Ethereum plans to transition to it in the coming months. NEAR is often compared to Ethereum, one of the most popular chains for building dApps.

The NEAR blockchain became popular because its developers succeeded in resolving key issues typical for competing projects. Thanks to innovative scalability solutions, NEAR made sure that the time and resources required to create and run dApps were minimal. It is a blockchain that is based on the PoS consensus mechanism with support for smart contracts that uses sharding and is controlled by token holders. Sharding is a method for breaking down large data sets into small ones (shards), improving transaction scalability.

The NEAR price soared after the launch of the Rainbow Bridge, which secures a bridge between NEAR and Ethereum, enabling the network to transfer not only its governance token but also all ERC-20 tokens and NFTs. The team is currently working on the Ethereum Virtual Machine (EVM), which will be deployed inside NEAR, allowing any Ethereum dApp to be ported to NEAR without changes and operate stably.

The total supply of NEAR is 1 billion tokens, with a market cap of roughly $2.5 billion, ranking it in the top 20 coins by market cap. The NEAR network hosts the creation of other dApps, making the project a direct competitor with other Layer-1 platforms like Ethereum, Solana and Avalanche. These networks have much more credibility in the community, which gives them an upper hand when it comes to potential returns. However, there seems to be room for more Layer-1 networks within the crypto industry.

The blockchain's native NEAR cryptocurrency was first distributed in 2020 following the NEAR Protocol's mainnet launch. As a proof-of-stake blockchain, the native token plays an important role in providing rewards and security to underpin the validation processes involved in adding new data (blocks) to the network. NEAR issues an additional 5% of tokens yearly, of which 90% are provided as staking rewards to validators. The token is also used to pay fees on transactions and for data storage.

The network has been successful in gaining backers. In its early days, NEAR raised more than US$20 million in venture capital from firms such as Andreessen Horowitz and Pantera Capital. In 2022, it completed two successful funding rounds to boost its network, raising US$150 million and US$350 million, which helped lift its token's price.

DappRadar data shows the NEAR blockchain is one of the top networks in terms of the total number of transactions being processed, which means activity is high. It rates highly in terms of the total value locked (TVL) of DeFi apps built on the network, and several of the world's most popular dApps are now built on NEAR.

Whether NEAR is a good investment will depend on several factors, including the company's deals and collaborations and product launches. At the time of writing, NEAR predictions from several algorithm-based platforms, such as DigitalCoinPrice, were bullish. However, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether NEAR is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.

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