NEAR Protocol (NEAR), launched in October 2020, is the native token of the NEAR Protocol, a Layer 1 (L1) blockchain designed for decentralized applications (dApps) with a focus on user-owned AI, DeFi, and chain abstraction. Built for scalability and usability, NEAR uses a sharded architecture and the Nightshade sharding protocol to achieve ~100,000 transactions per second (TPS). NEAR powers staking, governance, and transaction fees, enabling a developer-friendly ecosystem with tools like the NEAR SDK. The protocol’s $1.2 billion total value locked (TVL) ranks it among top L1s.

Key Features

  • Sharding: Nightshade splits the network into shards for parallel processing, boosting scalability.
  • Chain Abstraction: Simplifies cross-chain interactions via NEAR Intents, enabling seamless asset swaps across chains like Polygon and Solana.
  • User-Owned AI: Supports AI agents with confidential, multi-chain capabilities for Web3 integration.
  • Ecosystem: Hosts dApps like Infinex, RuneShot, and Kaito, with growing DeFi and gaming sectors.

NEAR Token

  • Purpose: Used for staking, governance, transaction fees, and accessing AI and DeFi services.
  • Supply: Circulating supply of ~1.2 billion NEAR, with no fixed cap due to inflationary rewards.
  • Contract Address: Native to NEAR L1, Coingecko. CMC.

Who Are the Founders of NEAR?

NEAR Protocol was co-founded by Illia Polosukhin and Alexander Skidanov, former Google and Microsoft engineers. Polosukhin, a machine learning expert, and Skidanov, a distributed systems specialist, aimed to create a scalable, developer-friendly blockchain. The NEAR Foundation, based in Switzerland, supports the ecosystem’s growth and governance.

What Makes NEAR Unique?

NEAR stands out for its AI integration and user-centric design:

  • Fast Finality: 600ms block times and 1.2-second finality, 10x faster than Solana and 600x faster than Ethereum L2s.
  • NEAR Intents: Enables goal-driven, cross-chain transactions, integrating assets like BTC, DOGE, and POL.
  • Deflationary Pressure: Transaction fees are burned, increasing NEAR’s scarcity as usage grows.
  • Developer Accessibility: Web2-like UX with NEAR SDK and account abstraction lowers entry barriers.

NEAR’s partnerships with Polygon, Infinex, and RuneShot highlight its chain abstraction and DeFi focus.

NEAR Network Upgrades (2025)

  • Shard Expansion: Increased from 6 to 8 shards, improving performance by 33% with one-block shard splits.
  • Faster Blocks: Reduced block time to 600ms with 1.2-second finality, setting a new L1 standard.
  • NEAR Intents Adoption: Integrated by Polygon and Infinex, enabling cross-chain swaps for BTC, DOGE, and XRP.

How Is NEAR Secured?

NEAR and the NEAR Protocol are secured through:

  • Thresholded Proof-of-Stake: Validators stake NEAR to secure shards, earning rewards.
  • Nightshade Sharding: Distributes workload across validators, enhancing decentralization.
  • Governance: NEAR holders vote on protocol upgrades and validator sets.
  • Fee Burning: Transaction fees are burned, aligning incentives for network security.

Conclusion

NEAR Protocol (NEAR) powers a scalable L1 blockchain, blending user-owned AI, chain abstraction, and DeFi with unmatched speed and accessibility. Its sharded architecture, NEAR Intents, and growing ecosystem position it as a top contender.