Zoran Kole believes Near’s recent series of events will see its market value appreciate by at least 100% over the next few months.
On April 7, Crypto Insiders founder Zoran Kole sparked a discussion in the crypto community with an article titled “The Future Belongs to Near,” writing that on April 20, Near will announce a partnership with other well-capitalized stablecoins to launch them Its own native algorithm stable currency, USN, will provide an annualized interest rate of about 20%. This article also comprehensively analyzes the Near public chain from the perspectives of technology and developers.
The following is the full text translated by PANews
With scalability, high transaction throughput, rapid year-over-year developer growth, and events that are about to trigger change, the NEAR protocol is on its way to new all-time highs.
Near is a development platform designed for usability based on sharding, proof-of-stake, and Layer 1 blockchain. It includes a permissionless base layer, independent native tokens, predetermined monetary policy, and a marketplace for computing resources. The Near team is made up of more than 90 world-class developers and researchers from tech giants such as Google, Meta, Microsoft, and MemSQL, who formed Near through a massive open-source, decentralized collaborative effort.
Near leans toward pragmatism over perfectionism, and its underlying value proposition is that “simplicity will ultimately drive adoption.” As such, its success is measured by the ease of use of the protocol and the ability of developers who have never owned a cryptocurrency to build on Near. Near is a developer-focused Layer1 blockchain platform that prioritizes developer and end-user experience, which is why it has been able to succeed in the long term.
At its core, Near is a community-operated cloud that acts as a marketplace for computing resources among participants. On the supply side, there are validator nodes (currently 100 nodes) that maintain network security through incentives. On the demand side, developers and end users are the main focus of the platform.
There is an inherent trilemma in layer-one protocols that is the biggest barrier to mass adoption and success. First of all, users want security, but as long as the user experience is smooth, platforms usually don’t care. Second, developers are most concerned with adoption, ensuring it has a sustainable source of long-term revenue. Additionally, validators want higher income to secure the proof-of-stake network. Ultimately, users are the primary token holders who want the native token to act as a store of value in the long term.
The underlying solution to this trilemma is that as the demand for the token from new users and developers grows, application usage on the network will increase. Validators of the network will then earn higher income as fewer tokens are staked and more tokens are burned, increasing the validator’s earnings. Through this economic flywheel, fees are reduced, validators are compensated, and end users are happy as token holders, and the security of the network increases.
NEAR and ETH 2.0
To paraphrase Naval Ravikant (AngleList co-founder, early investor in Uber, Twitter, etc.), “Near looks like an Ethereum 2.0 roadmap, only it’s implemented.” Ethereum 2.0 aims to be a shard , Proof-of-Stake, EVM-compatible one-layer blockchain that enables cheap, fast transactions while being environment- and developer-friendly. The launch of Simple Nightshade (which launched its first phase last November, split into four shards and shared among 60 or so validators) brings Near one step closer to its goal of a fully sharded and secure blockchain.
Near adopts the Delegated Proof of Stake (DPoS) consensus mechanism and currently can achieve 2500-3000 transactions per second. It consists of shards and validator seats (100 validator seats per shard) that can increase linearly with network demand, thus lowering the barrier to entry and enabling mass adoption in the future.
The Near network optimizes liveness rather than security through the Byzantine fault tolerance assumption, resulting in a finality of all transactions below 2 seconds.
The biggest difference between Near and Ethereum 2.0 is that Near uses a single chain to shard each block, rather than the beacon chain. This ensures data availability for consensus while mitigating shard-level attacks. Dynamic resharding is expected to go live by the end of 2022, which will allow the network to keep transaction fees low while achieving higher throughput. This approach is also environmentally friendly, with Near being certified as a carbon neutral project by South Pole in February 2021.
Additionally, Near has its own Layer 2 protocol, Aurora, which is EVM-compatible, allowing current Ethereum developers to seamlessly run their applications on Near at a fraction of the cost. Aurora helps bridge the gap between Ethereum and Near with 1-second block times, 2-second finality, and roughly $0.02 per transaction. This low barrier to entry has led to massive adoption by developers over the past few years.
According to Electric Capital, Near is one of the top alternative layer 1 blockchains (besides Bitcoin, Ethereum, Polkadot, Cosmos, Solana) with the most full-time developers.
Near has one of the fastest growing ecosystems, with a 4x increase in the total number of developers in the past 2 years. This high growth rate of developers is a key indicator that the adoption and use of the protocol will continue to grow.
If the developer believes that the lifetime value of the user will exceed the gas cost, they can pay the gas and transaction cost. This provides predictable pricing for budget end-user expectations.
30% of transaction fees go to smart contracts (evenly distributed among all contracts used during the transaction), which provides a sustainable revenue stream for smart contract development. With the announcement of the $800 million incentive fund, developers added an attractive reason to build on Near.
There is a 95-97% drop in onboarding to blockchain-based applications and games. Near focuses on progressive security (high availability and low security, and vice versa). Near’s account name ends with “.near”, which provides a convenient user experience for new end users. In addition, Near’s Delegated Proof of Stake Consensus also empowers users to participate in the security of the ecosystem, a process that can begin with the first user interaction with the platform through a native wallet application. This ease of use and low barriers to entry for developers provide core advantages for Near’s long-term adoption.
Near has several change-inducing factors that make it an entirely attractive investment. In late January, Near closed a $350 million funding round led by Tiger Global, adding to the list of VC giant stars supporting the Near ecosystem. As of the third quarter of 2021, Near was the second most frequently held asset by crypto funds, according to Messari.
Additionally, Near will be listed on the Coinbase exchange in the coming months, which will help increase its visibility among retail investors in an unprecedented way. This also paves the way for the integration of Near NFTs into Coinbase’s upcoming NFT marketplace. Finally, on April 20, Near will announce the launch of their own native algorithmic stablecoin, USN, in partnership with other well-capitalized stablecoins. They will offer around 20% APR, which is very attractive and will also facilitate the rotation of DeFi capital into the Near ecosystem, drawing total TVL from other layer-one protocols.
This will compare Near to Terra as attractive stablecoin yields grow. Terra currently has a market cap of about $40 billion, while Near has a market cap of $10 billion. The factors that trigger the changes above will strengthen Near’s fundamentals in the short and long term, and could cause its market cap to appreciate at least 100% in the coming months.
In short, the future belongs to Near.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/article-by-the-founder-of-crypto-insiders-why-does-the-future-belong-to-near/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.