NEAR Protocol is a next-generation, layer-1 blockchain designed for high performance, scalability, and ease of use. Launched in 2020 by the NEAR Collective, it aims to overcome common challenges faced by older blockchain networks, such as limited throughput, high transaction fees, and complicated developer experiences. NEAR Protocol uses a unique consensus mechanism called "Nightshade," a type of sharding technology that enhances scalability by processing transactions in parallel across multiple shards. This approach enables the network to handle thousands of transactions per second while maintaining low costs and energy efficiency.
The native cryptocurrency of the network is NEAR, which serves multiple functions, including paying for transaction fees, participating in network governance, and staking to secure the network. Developers are attracted to NEAR due to its user-friendly tools and the ability to build decentralized applications (dApps) using familiar programming languages, supported by robust documentation and community resources.