Introduction to NEAR Protocol
NEAR Protocol is a high-performance Layer 1 blockchain designed to simplify the development of decentralized applications (dApps) and support scalable solutions for Web3 and artificial intelligence (AI). Launched in 2020, NEAR uses a unique sharding technology called Nightshade, which provides high throughput and low transaction costs. The NEAR token is at the heart of the ecosystem, facilitating transaction payments, staking, and governance.
Technological advantages of NEAR
NEAR Protocol stands out among other blockchains due to the following features:
Dynamic sharding: Nightshade allows the network to be divided into multiple shards, enabling transaction finalization in less than 600 ms.
Intuitive user experience: NEAR simplifies blockchain interaction, allowing users to create accounts without complicated wallets, using Google, GitHub, or Discord.
AI Support: NEAR positions itself as the "blockchain for AI", providing infrastructure for autonomous agents and secure execution of AI models.
The role of the NEAR token
The NEAR token serves several functions:
Transaction payments: Used to cover fees for data processing and transactions.
Staking: NEAR holders can participate in consensus through the Doomslug mechanism (a variant of Proof-of-Stake), earning rewards.
Governance: Token holders vote on proposals for network development, such as protocol upgrades or integrations.
Market achievements
As of August 2025, NEAR Protocol ranks 36th in market capitalization ($3.61 billion) with a token price of around $2.90. Over the past 7 days, the token has increased by 18.6%, outpacing the market of smart contract platforms. The 24-hour trading volume is $381 million, indicating high interest from institutional and retail investors.
Prospects and risks
NEAR is actively developing its ecosystem, integrating with projects such as PublicAI, and launching initiatives like NEAR.AI Assistant. However, competition with Ethereum, Solana, and other Layer 1 blockchains, as well as market volatility, remain challenges. Investors are advised to conduct their own research (DYOR) before investing.
NEAR Protocol is a step towards mass adoption of blockchain technologies, combining simplicity, scalability, and innovation for Web3 and AI.