Why DeFi Projects choose Near Protocol
The Ethereum competitor, Near Protocol, is a community-run dApp (Decentralized Application) that focuses on offering a developer and user-friendly environment. Near Protocol is becoming the many ambitious DeFi projects for the qualities it has over the Ethereum blockchain. Near is known for its amazing token and tokenomics and scalability.
Qualities and Innovation of Near Protocol:
1. Scalability and Sharding:
The near protocol is known for sharding technology called “NightShade” which promises increased scalability without compromising the security and decentralization of the network.
The Ethereum network is super congested because of the number of transactions. Users have to bid higher by paying more fees to perform their transactions faster. Ethereum can perform 15 transactions per second and the fee can go as higher as $50. Near Protocol leverages NightShade to solve the problem by providing alternative channels through dedicated nodes to perform the transaction. This helps not only maintain the lower fees but also improved scalability by outperforming Ethereum.
2. Consensus and PoS
Near Protocol is a community-run dApp that uses Delegated Consensus Mechanism to make the whole ecosystem fully decentralized. The PoS (Proof of Stake) approach is used by Near protocol to empower those who don’t have their computer parts or coins to become a validator through DoomSlug. Through the DoomSlug mechanism, a set of contributors produce and broadcast blocks by taking turns.
The way the Scalability of Swissblock is somewhat similar to the Near Protocol’s approach. To tackle network congestion and improve TPS (Transaction Per Second) without compromising the security was a challenge taken up by the SwissBlock developers. And now, the platform is capable of performing lightning-fast transactions and handling any number of users without affecting its performance. Through multi-node multifunctional distributed deployment, SwissBlock promises scalability which is second to none.
Near Protocol has a very mature governance and maintenance mechanism to carry out upgrades and make decisions proactively with the inclusion of community elected representatives. Near protocol is run and maintained by a non-profit foundation called Near Foundation however the technical upgrades are done by the Reference Maintainer. Near protocol is nearing Web 3.0 development to distinguish itself from the competition.
4. Human Readable addresses and usability
This is what a cryptocurrency address looks like and if you narrate to someone on phone or memorize yours, it seems impossible to do. What near protocol did is it made the contract addresses “Human Readable” just like you can receive your crypto at “myname.near”. Correct, Ethereum does the same but does that come free like in Near Protocol? I doubt that.
Near Protocol focuses on a user-friendly environment by following a usability-first approach. Progressive Security Model, User-friendly interface, Easy subscriptions, and user-centric policy makes Near Protocol DeFi’s favorite pick.
Projects on Near Protocol:
1. Aurora cross-chain bridge
Aurora is a cross-chain bridge built on Near Protocol. Aurora serves Decentralized Applications and users on the Ethereum network to bridge to Near Protocol. The Aurora Platform was successfully launched on December 02, 2021. Aurora claims to be the perfect scaling solution for Ethereum Network.
2. Rainbow Bridge:
Rainbow is also a bridge between Rainbow and Ethereum. Rainbow enables Ethereum assets to be usable on Near Protocol and vice versa. Users can onboard Rainbow Bridge using MetaMask Crypto Wallet.
3. REF Finance
Ref Finance is another core project in the DeFi ecosystem on Near Protocol having more than $68 million TVL on the platform. REF Finance mainly focuses on DEX, Lending Protocols, and synthetic asset issuers.
With TVL above $30 million, MetaPool is a Near Backed DeFi platform that offers liquidity staking. MetaPool is the first platform to offer NEAR’s first liquid staking token, the stNEAR. Stakers earn a $Meta token as a reward on every epoch. Near Protocol is the first choice of many other DeFi Projects like Proximity Labs, Berry Club, Cheddar, and Skyward Finance.
Near Protocol is an incredible ecosystem that is simple, secure, and highly scalable. Many DeFi projects have already joined the Near Protocol and there are more who see their inclusive future with such a capable project. The Robust infrastructure of NEAR is taking over DAOs, DeFi, and NFTs through intuitive developer tools and a decentralized community.