At the beginning of this year, Near had only 2 million active accounts, but today, 6 months later, the total number of Near accounts has exceeded 15 million. As one of the fastest growing public chains in the ecosystem, NEAR has frequently reported good news this year.
In April this year, after NEAR completed the $350 million financing led by Tiger Global, it launched the native stablecoin USN and Aurora + platforms. Its ecologically native projects are also favored by capital, Ref Finance, Burrow, Trisolaris, Mintbase, Tonic Agreements such as Orderly Network and Orderly Network have recently received large financing from well-known investment institutions.
The reasons behind the rapid growth of the NEAR ecosystem are multi-faceted, that is, it is inseparable from technical reasons such as shard expansion and the launch of the Rainbow Bridge, and it is also inseparable from the incentives of ecological funds and venture capital institutions.
NEAR was officially launched in 2020. Compared with other public chains, it started a little later, and the ecological construction is also in a relatively early stage. However, the advantage of a late start is that there is no technical burden. The night shadow sharding developed by it makes NEAR the first blockchain network to apply sharding technology more maturely. In addition, in terms of route and layout, NEAR bet on the future of L2 and application chain, and developed L2 EVM layer Aurora and Octopus Network.
In addition, as the competition between public chains intensifies, major public chains have begun to launch ecological funds, and NEAR has also launched an ecological development grant plan of about US$800 million. Under the strong incentive plan, more than 600 projects have been built on NEAR, including DeFi, NFT, GameFi and other fields.
Just like its name, NEAR focuses on simplicity and ease of use, so it also pays more attention to the improvement of user experience and development experience. User-friendly, not only reflected in the low gas fee and speed, but also in the interface interaction similar to Web2. For example, the NEAR account has an easy-to-remember short address domain name and customized usage rights, and users do not need to know the public key and private key. , mnemonic words and gas fees, the official wallet can also choose to set up and restore accounts by email or mobile phone.
As a high-performance public chain, NEAR’s ecology still needs time to accumulate and accumulate. At present, the number of TVL and active users is still significantly behind other mainstream public chains, but in general, its “infinite expansion” technical architecture will carry More applications and protocols are currently one of the most potential public chain ecosystems.
“Infinite Expansion” Narrative
NEAR’s genesis block was officially launched in April 2020. Unlike the expansion plan that selected sidechains at the same time, NEAR built a blockchain network based on sharding technology from scratch.
Sharding technology is also the future of choice for Ethereum. Because there is an upper limit on the computing power of nodes, the TPS speed that can be maintained by a non-sharded public chain is basically maximized by Solana. As the first blockchain to implement sharding, NEAR’s Nightshade sharding protocol adopts the design of intra-block sharding and logical sharding. Cross-shard transactions are performed within a block, thus solving the transaction delay problem of the shard chain architecture.
Each shard can support a performance of 1000 transactions per second. At the same time, the Night Shadow Protocol can achieve horizontal expansion. In theory, there is no upper limit on the number of shards, and unlimited expansion can be achieved, so that it can carry more user needs.
Relatively speaking, NEAR can be considered comprehensive in terms of strategic layout. In addition to continuously optimizing the performance of the main network, NEAR has also launched the L2 EVM layer Aurora with greater prospects and the Octopus Network, a multi-chain network designed as an application chain.
Aurora is an Ethereum Layer2 scaling solution based on NEAR. Aurora is compatible with Ethereum 1.0. Through the Rainbow Bridge, users can freely move assets between Aurora, NEAR and Ethereum, support EVM and use ETH as the gas currency, and the fee is extremely low. Users can directly use MetaMask, imToken, Etherscan and other tools in Aurora, and Dapps on Ethereum can be migrated to NEAR, without the need to build a car separately. The Aurora mainnet has been online for nearly a year, and the ecosystem currently has more than 100 projects.
In addition, it takes about a few minutes to transfer from Ethereum to Aurora, and the confirmation between NEAR and Aurora can be achieved in seconds. Although many L2 solutions under development claim to have a throughput of tens of thousands of TPS in theory, their underlying architecture design limits the development of their capabilities. Aurora is backed by NEAR sharding technology, so it can achieve high throughput.
In May of this year, Aurora launched the Aurora + platform, which provides users with 50 free transfer opportunities per month, which can basically meet the needs of ordinary users. At the same time, staking on Aurora + can also accept airdrops of other ecological tokens. According to the roadmap, in the future, Aurora+ will also provide various functions such as private transactions, single-point KYC, and governance participation.
If Aurora and sharding technology are to meet the current needs, then the development of Octopus Network is NEAR’s advance layout and planned satellite city belt for the future.
Recently, dYdX announced the launch of its own layer1 blockchain in the Cosmos SDK, which sparked discussions on the application chain and the public chain. If high-quality applications are weakly dependent on the underlying chain, while the underlying chain is strongly dependent on high-quality applications. It is indeed time for public chains to think about user retention.
Octopus Network is the third multi-chain network protocol after Cosmos and Polkadot. Its design goal is to safely and efficiently start and run a large number of Web3 applications in the form of independent blockchains. Every application chain that joins the octopus ecology is a side chain of NEAR, and NEAR becomes a de facto “multi-chain network hub”, further realizing the “infinite scalability” that NEAR pursues.
NEAR mentioned in an interview with Chain Catcher: “At present, it has become a consensus that blockchain needs to be applied to create effects. The role of the financial system is to allocate capital efficiently for social production. If DeFi capital cannot flow into the production sector to create utility, So today’s public chains that focus on financial applications have no other use than to export bubbles.”
Therefore, the Octopus Network Application Chain aims to create countless centralized production-oriented digital economies, and the relationship between these entities and NEAR’s DeFi protocol is like the relationship between the real economy and the financial system.
“Developer-friendly” public chain
According to the statistics of Coin98 Analytics, NEAR ranks sixth in the list of active developers of various public chains.
According to the “2021 Developer Report” released by Electric Capital, NEAR is one of the alternative layer-one blockchains with the most full-time developers (besides Bitcoin, Ethereum, Polkadot, Cosmos, Solana). In the last year, the number of NEAR developers has more than quadrupled, making it the 6th largest ecosystem in 2021.
In addition to NEAR’s core advantages of unlimited expansion and low gas fees, NEAR can attract developers mainly in two aspects: one is to provide developers with a variety of underlying frameworks to choose from; the other is a relatively strong ecological incentive plan .
Development Frameworks and Languages
NEAR supports three development frameworks at the same time: NEAR native framework, Aurora and Octopus Network.
NEAR’s native framework is a WebAssembly-based runtime environment, which is highly scalable and easy to use.
Aurora is an Ethereum layer2 built on top of the NEAR protocol. Aurora is fully compatible with Ethereum 1.0, while providing the speed and scalability capabilities promised by Ethereum 2.0.
Octopus Network is a Substrate application chain network, also based on NEAR. With the rental security model, the cost of deploying applications on the Octopus network is 100 times lower than Polkadot-based solutions. Compared with smart contracts, AppChain can configure network parameters and economic models more flexibly to meet the needs of various Web 3 specific applications.
At the contract development level, NEAR has designed a protocol-level royalty function, of which 30% of the gas fee will be given to the creator of the smart contract. At the same time, the NEAR community has a lot of documentation on building and deploying on the network, constantly updating the underlying development tools.
Last year, NEAR launched the NEAR University section, a training and certification program for developers for both non-technical and technical personnel. More than 5,000 developers have been trained and more than $45 million in project grants have been awarded.
The NEAR Certified Developer Chinese course is open to developers for free every month. The course introduces the basic knowledge of NEAR smart contracts and application development, and invites developers from NEAR ecological projects to share the development practices of NFT, games, application chains, etc. in the NEAR ecosystem, as well as The Graph, Filecoin, Crust, etc. technology integration, etc.
NEAR Ecological Incentive Fund Program
With the intensified competition of public chains, major public chains have begun to launch ecological funds, and NEAR is no exception. In the last year alone, about $800 million in ecological development grant programs have been launched.
According to reports, the $800 million NEAR ecological incentive will be distributed in the following forms:
- $350 million focused on growing the NEARDeFi business. The funding will distribute 40 million NEAR tokens in the form of grants DAO within 4 years to support the rapidly rising ecosystem of NEAR. Grants can be applied for for all projects, and the value of each grant ranges from $5,000 to several million dollars;
- $100 million will be allocated to the Startup Grant Pool to help startups grow;
- $250 million will be allocated to ecological grants to help further development and growth of existing ecological projects;
- $100 million will be allocated to regional funds to promote NEAR’s growth in Asia, Europe, and the United States, where NEAR has the largest user base.
There are currently more than 800 ecological projects supported by the NEAR Foundation, including DeFi projects such as Burrow, Aurigami, and Bastion, as well as GameFi and NFT projects including OP Games and Paras.
In addition, in April of this year, Proximity Labs and Aurora Labs, which focus on the NEAR ecosystem, jointly launched a $90 million ecological grant program to further attract developers and promote the development of NEAR applications.
As of the end of June, more than 600 projects had been deployed on NEAR and Aurora.
According to DeFillama data, NEAR DeFi ecological TVL exceeded $100 million for the first time in September last year. In May this year, TVL hit a record of $590 million. The recent TVL is about $310 million.
The top three DeFi projects in NEAR’s total lock-up volume are: Ref Finance (REF), Burrow, and Meta Pool (META).
Ref Finance is the core project of the DeFi ecosystem on Near, and it is also the number one project in the Near ecological TVL, with a value of about 196 million US dollars. The project brings together the core components of DeFi, namely decentralized exchanges (DEX), lending protocols, synthetic asset issuance, etc. In February of this year, Ref completed a $4.8 million funding round led by Jump Crypto.
Burrow is NEAR’s native lending protocol, similar to Aave, Compound, and other pool-based protocols. Users can make deposits such as NEAR, DAI, USDT, USDC, ETH, and wBTC at Burrow and earn income or borrow at customized interest rates. In the future, users can also unlock services such as income pledge and automatic loan repayment for some interest-bearing assets, including stNEAR, stSOL and stFTM. At the end of March this year, Burrow completed a $5 million financing from Dragonfly Capital and others.
In addition, Orderly Network, which just completed financing in June, is also worth mentioning. Orderly is a decentralized order book trading protocol that was just established in April this year. It was incubated by NEAR and WOO Network and completed a $20 million financing in early June with participation from Sequoia China, IOSG Ventures, and Jump Crypto.
In addition to DeFi projects, NFT is also the main feature of the NEAR ecosystem. There are currently more than 200 NFT projects in the ecosystem. Among them, Paras, the largest NFT trading platform on NEAR, was founded in Indonesia in 2020 and currently focuses on NFT transactions of games, comic IP and other types. In November last year, it raised a $5 million seed round through private financing and an initial DEX offering, with participation from well-known VCs such as Dragonfly Capital.
Mintbase is also worth keeping an eye on. Mintbase is an NFT casting and sales platform supported by the NEAR ecosystem. It just received $12.5 million in Series A financing in April this year, including the $5 million grant program Grants supported by the NEAR Foundation. The NFT categories on the platform are mainly tickets, music, art, etc.
The NFT marketplace on NEAR is closer to the experience of Web2 users, with low minting fees and easy operation. Therefore, NEAR is also seeking cooperation with the mainstream market. For example, the international sailing event SailGP will launch NFT on NEAR, and the cooperative NFT includes not only posters, artworks, photography works, but also admission tickets and tickets. In the future, the two parties will also explore supporting NEAR DAO to organize participation in the event.
In terms of on-chain data, in the past week, the number of daily transactions of NEAR was between 300,000 and 400,000, and the daily active accounts were mostly around 10,000. Recently, Nerar ecological developer @resdegen also tweeted that an unofficial integration based on MetaMask is being tested. Users do not need to create a NEAR wallet and can directly interact with the NEAR application using MetaMask, which will make NEAR the first MetaMask compatible Non-EVM chain.
According to official website statistics, there are currently 163 projects in the Aurora ecosystem as the NEAR EVM layer.
According to Deflama data, the Aurora DeFi project currently has a TVL of $256 million, including a total of 36 projects. It previously set a record of $1.39 billion on April 30 this year and surpassed the NEAR ecological TVL. The top three DeFi projects in TVL are all Aurora ecological native projects, namely DeFi lending protocol Bastion, decentralized exchange Trisolaris and lending project Aurigami.
Bastion launched the Aurora mainnet in March this year, aiming to become NEAR’s liquidity center. Two financings were completed in March and April respectively, and participating institutions included FTX Ventures, Jump Crypto, and Wall Street trading firm Jane Street.
Trisolaris, the first DEX on Aurora, received a $4.5 million strategic investment led by Electric Capital in April this year.
Aurigami completed financing led by Dragonfly Capital and others in February this year, and the project was launched in March this year.
From the overall number, there are currently 4 DeFi projects with Aurora TVL over $5 million, and 12 projects with more than $1 million. In terms of on-chain data, according to its block explorer, the number of Aurora transactions in the past week has ranged from 50,000 to 70,000, and the number of daily active addresses has fluctuated in the range of 3,000-4,000, all of which have fallen sharply.
The ecological prosperity of the public chain is jointly promoted by the development of developers, the support of the community and users, and the precipitation of time. Especially in the current situation where DeFi and NFT narratives are weakening, grasping the next innovation and hotspot is the key breakthrough point to bring growth. This is also NEAR’s continuous iteration on the underlying technologies such as Yeying sharding, optimizing the development experience and strengthening the ecology Reasons for investing in hatching.
Although the NEAR ecosystem is still significantly behind other mainstream public chains, its performance and strategic layout all indicate its future potential and development space.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-does-near-build-a-developer-and-application-ecosystem-under-the-narrative-of-infinite-expansion/
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.