Why NEAR is a blockchain unique?
Why NEAR is a blockchain unique?
Why NEAR is a blockchain unique?

Effective Decision Making in the Selection of the Mechanism

What is the significance of the triangle NEAR AURORA OCTOPUS?

Figure 1.1. The NEAR Ecosystem Mechanism

In addition to using a Rainbow Bridge, the running of EVM Dapps on the Layer-2 Ethereum via auroraisnear and substrate-based app chains via Octopus Network enables user connectivity to be extended across multiple ecosystems. The NEAR Protocol is the only chain that purposefully improved and adapted its technology to fully meet the needs of the Open Web. This means that a wide range of potential applications can be built on NEAR fiat-backed coins, including those powering everyday commerce and interaction.

Figure 1.2. The 3 Generations of Blockchain (Source: https://near.org/blog/the-evolution-of-the-open-web/)

Aurora’s running of the EVM solves the gap between blockchains, developers, and users. Aurora allows assets to pass uninterrupted between the Ethereum and NEAR blockchains, thereby uniting economies and facilitating the growth of creator communities. Especially, when Aurora+ was launched, an exciting new platform providing Aurora users with free transactions, staking of AURORA tokens, airdrops, and more.

Figure 1.3. The Aurora+ Features

Appchains in the Octopus Network benefit from flexible and cost-effective lease security (LPoS), out-of-the-box multichain interoperability, and a ready-to-be-engaged community. Octopus Network is built on substrate – an open-source development framework. The arrival of Octopus is also an attempt to help other Substrate/Polkadot Dapp developers become familiar as they do app development on NEAR Protocol. Octopus Network is becoming the satellite city belt surrounding NEAR and an optimal habitat for non-financial Web3.0 applications. The ease of building an Appchain on Octopus doesn’t mean the project is easy to accept. Therefore, the candidates must go through the process of selection and receive the vote of the decision-making power of the Octopus community. Substrate-based chains can become Octopus appchains by successfully completing the following stages:

  • Registration
  • Auditing
  • Voting
  • Staging
  • Booting
Figure 1.4. Appchain Application Process on Octopus Network

A Decentralized-oriented Community Governance Method

DAOs are a new collaboration method. Members own the organization and are rewarded based on their contributions. There are no superiors or hierarchies. Instead, the participants are brought together by a common purpose. Guilds are communities that make up the greater NEAR community. Each guild shares a specific vision and mission related to driving a more open, interconnected, and consumer-empowered world.

Figure 2.1. Some Guilds on NEAR

According to the statistics, the total number of hits on the NEAR forum is more than 46,000 visits, and in the last 3 months, it has increased by more than 20,000. The change in total website traffic analyzed on desktop and mobile increased by 49.71% almost double month-over-month.

Figure 2.2. Total visits last 3 months on NEAR Forum

The topics on the forum are very diverse and vibrant. The categories are app development, community development, marketing support, creative development, and bringing industries NEAR. Creatives, Community, and Open Web Sandbox are the categories with the most discussions right now.

Figure 2.3. Categories on NEAR Forum

The Fundraising and Grants on the NEAR Ecosystem

Near Protocol’s two recent fundraising announcements included $150 million on January 14, 2022, and $350 million on April 6, 2022, from major VCs. The most notable investors are a16z, 3AC, Jump, Alameda, Tiger Global, and FTX.

Figure 3.1. NEAR Protocol had raised $500M after Latest Funding Round

Furthermore, there are several potential projects on NEAR Protocol that have raised funds to support and attract investment from big investors, such as the projects Aurora, Ref Finance, Bastion Protocol, Aurigami, MetaPool ….

Figure 3.2. Fundraising on NEAR Ecosystem

In 2021, the NEAR ecosystem announced a monumental $800M in funding initiatives targeted at accelerating growth, there will be a special focus on DeFi. 

Figure 3.3. $800M in Funding Initiatives To Support NEAR Ecosystem Growth

In 2022, the NEAR Foundation has awarded over $45 million in grant funding to over 800 projects, proximity creations a “$350M Grants DAO for NEAR DeFi Projects”. Besides, Aurora has launched a $90 million token fund to accelerate the development of decentralized finance (DeFi) applications. With the launch of its new developer fund, Aurora Labs said it hoped to make its EVM layer on Near more appealing to Ethereum developers. Aurora DAO continues its mission to extend the Ethereum economy outside the Ethereum blockchain. This grant is the next big step in the development of the Aurora ecosystem. 

Figure 3.4. Some recent project granted on Aurora

NEAR Education Team offers grants to projects sharing their mission of educating & enabling 1 million individuals (developers, entrepreneurs, and educators) by 2023. It is worth noting that the NEAR Foundation does not directly invest large amounts of money in projects, but rather distributes grants ranging from $100,000 to $250,000 to encourage various pilot projects to join the NEAR Protocol ecosystem (normally $50,000). This can also be viewed as a new and more effective partnership strategy for attracting new projects and expanding the ecosystem.

Education is the Best Way to Orient Loyal Users

NEAR Education has assisted over 5,000 students in learning and developing on NEAR, paving the way for the next generation of apps. Devs and entrepreneurs can gain knowledge of NEAR developer skills (for free) through courses, guided workshops, instructional videos, and more at NEAR University. Developing education is key to driving loyalty among users to the  Near Ecosystem. Especially, when the market is in a downtrend, those who stay are those who understand the value of NEAR and the projects in the ecosystem that will bring them.

Figure 4.1. Programs at NEAR University

The Trend of NFT on NEAR Ecosystem

COVID-19 fast-forwarded the adoption of NFT technology in addition to many other traditional markets, especially NFT related to art. According to industry experts, the exponential rise in digital marketplaces post the outbreak of the COVID 19 pandemic contributed the most to the adoption and growth of NFT. The NFTs market size is expected to grow from $3.0 billion in 2022 to $13.6 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 35.0%. 

Figure 5.1. Driving factors for Market growth in America

The NFT projects based on NEAR play critical roles in the ecosystem. They are not only expanding use cases but also bringing these unique digital assets into the mainstream. This is useful if one wants to be the rightful owner of a piece of art, and good for the artist who might want to know who bought their work. NEAR Protocol‘s NFT standard automatically bakes royalty splits into the smart contract, streamlining the payout process. Artists can stake assets on a platform or protocol, earning interest for those involved.  NFTs on NEAR now even have the power to give rewards to their creators or owners.  Users can stake assets on a platform or protocol, earning interest for those involved. Besides, NEAR Protocol is shifting the cultural paradigm with NFT by bringing art and traditional culture into the blockchain and with the web3 app to make a user-friendly NFT experience.

Climate Neutral

Climate change is arguably the most critical global crisis facing humans today. NEAR Protocol is aware that they are reducing CO2 emissions as a result of Blockchain transactions that depict CO2 emissions and the corresponding changes in average yearly temperature from 1960 to 2019.

Figure 6.1. CO2 emissions and corresponding changes in the average yearly temperature from 1960 to 2019

NEAR Protocol has been awarded the Climate Neutral Product Label from the South Pole. They recognize that being Carbon Neutral can play a key part in their sustainability and Corporate and Social Responsibility (CSR) strategy to change action on global climate change.

Figure 6.2. Climate NEutral Product Label

NEAR Protocol currently generates a carbon footprint of 174 tons of CO2 per year. Therefore, the NEAR Protocol is more than 200,000 times more carbon efficient than Bitcoin, mainly by applying PoS instead of PoW.  Another advantage of PoS is that the carbon footprint of NEAR will only marginally grow due to the increasing transaction throughput. Compensating that footprint with reforestation projects makes the NEAR Blockchain carbon neutral.  NEAR attracts like-minded people who want to commit to improving the climate through climate-friendly solutions. While using the NEAR Protocol, you are already offsetting CO2 emissions. However, they are exploring novel approaches to take it a step further so that every project built on NEAR can easily measure and offset its carbon footprint

Figure 6.3. Compare CO2 Footprint on NEAR and Bitcoin, Ethereum

Stablecoin $USN: Is it disturbing?

$USN is a NEAR-native stablecoin soft-pegged to the US Dollar, backed by a Reserve Fund. USN’s core stability mechanisms consist of on-chain arbitrage and the Reserve Fund based on the Currency Board principle. The four most important components of $USN are:

  • Backed by US dollar
  • Backed by the cryptocurrency marketplace ensures
  • Semi-algorithmic (semi-algorithmic) construction
  • Complete construction of the algorithm
Figure 7.1. Mechanism of action of the USN

Unlike UST, which is minted by burning LUNA, USN is minted through a “swap” process with NEAR. The NEAR used to create USN is then staked on the NEAR blockchain, generating staking rewards that are distributed to USN holders. The key point is that minting/burning USN has no effect on NEAR supply; thus, the Reserve Fund’s distributed staking improves the NEAR blockchain’s baseline economic security. Furthermore, the first 1 billion circulating USN will be backed 1:1 by USDT, in addition to 1 billion dollars worth of NEAR staked in USN’s Decentral Bank Protocol, which ensures over-collateralization of USN even in the case of extreme NEAR price fluctuations. USN essentially represents the claim to NEAR staking rewards, a stream of future yield, which makes it not only a stablecoin, but a financial primitive to construct more sophisticated (and hedged/leveraged) portfolios of NEAR and more when USN goes multichain. USN — the Ultimate Alpha of NEAR

In the case of stablecoins, DAO is also important. As each ecosystem’s central bank, the DAO must closely monitor the current situation and adjust the strategy accordingly, for example, lower staking or farming rates to reduce demand and vice versa to stimulate the economy. The $UST situation has also warned blockchains using stablecoins to be aware of the problem. It is a challenge for creators to solve that problem in the future.

Prediction

According to on-chain data, the daily number of transactions on NEAR has increased rapidly and steadily since the launch of its mainnet (Figure 8.2). NEAR’s Mainnet currently has over 1.3 million accounts and is rapidly expanding (Figure 8.1). Although during market volatility, NEAR price decreases, NEAR trading volume is increasing daily (Figure 8.3). Is there a flow of users between platforms? They chose NEAR because it has high growth potential in comparison to many other blockchain platforms.

Figure 8.2. Total Number of Transaction
Figure 8.1. Total Number of New Accounts

 

Figure 8.3. Price vs NEAR trading volume last 3 months  (Source: https://tokenterminal.com/terminal/projects/near-protocol)

NEAR has one of the most interoperable and versatile frameworks for developers of all backgrounds. It already attracts a mix of multi-chain projects that use Aurora, the EVM environment, native Rust projects, and substrate-based projects that use Octopus. No other layer-1 provides this level of adaptability. NEAR’s vision is to create a network that acts as an on-ramp for billions of people to access the next generation of the web.

NEAR Protocol also is the best technology for developing Blockchain applications for widespread adoption. The NEAR ecosystem is still in its early stages, but there are numerous opportunities in DeFi, Gaming, social apps, NFTs, and other areas. Besides, they are exploring new approaches to take it a step further so that every project built on NEAR Protocol can easily measure and offset its carbon footprint.

Furthermore, in less than the first 6 months of 2022, NEAR Protocol has raised capital from big investment funds, demonstrating its bravery and potential. NEAR Protocol deserves to be ranked among one of the top ten blockchain platforms in the cryptocurrency world.

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