#near
NEAR's native token is also called NEAR, and is used to pay for transaction fees and storage. NEAR tokens can also be staked by token holders who participate in achieving network consensus as transaction validators. NEAR Protocol is focused on creating a developer and user friendly platform.
Near Protocol is a layer 1 blockchain network. It provides a platform on which developers can build decentralized applications (dapps). The most successful layer 1 blockchain is Ethereum, so protocols like Near are seen as challengers.
The key yardsticks for layer 1 networks are transaction costs, speed and the ability to maintain those features as transaction volumes grow. These factors are the focus for layer 1s like Near to improve upon Ethereum, which has encountered issues with costs and speed over the last few years.
Near Protocol is starting to implement a new version of sharding, which will turn it into what it describes as a "fully sharded" network. The innovation is "state sharding," as opposed to simply "processing sharding." Instead of simply dividing up the responsibilities of the validators, it actually divides the blockchain itself up into smaller parts. Near calls its technology "Nightshade" and began introducing it in phases in late 2021, as the transaction volume on the network increased.
