There has been a lot of chatter about $NEAR @NEARProtocol recently.
In particular, there have been announcements of a total of 800m USD in grants, which are a significant increase compared to ecosystems such as $AVAX.
Let's have a look at $NEAR and its capabilities.
1/🧵
In particular, there have been announcements of a total of 800m USD in grants, which are a significant increase compared to ecosystems such as $AVAX.
Let's have a look at $NEAR and its capabilities.
1/🧵
2/
800m in grant are going to be invested as incentives for the $NEAR ecosystem to grow, check here:
coindesk.com/tech/2021/10/2…
Similiar to $AVAX, this will likely kick-off onboarding of a large number of users.
So what do you need to know about $NEAR to be ahead of the curve?
800m in grant are going to be invested as incentives for the $NEAR ecosystem to grow, check here:
coindesk.com/tech/2021/10/2…
Similiar to $AVAX, this will likely kick-off onboarding of a large number of users.
So what do you need to know about $NEAR to be ahead of the curve?
3/
@NEARProtocol refers to itself as a "decentralized platform for applications", which was designed to fit the key requirements of the Open Web (Web3 analogue).
First of all, what are these requirements?
@NEARProtocol refers to itself as a "decentralized platform for applications", which was designed to fit the key requirements of the Open Web (Web3 analogue).
First of all, what are these requirements?
4/
In an Open Web world, all digital data-exchange and interactions will be decentralized and P2P. In such a world, we inevitably need a blockchain with:
- High volume, high speed, low cost tx
- High usability with smooth, easy-to-use interfaces
In an Open Web world, all digital data-exchange and interactions will be decentralized and P2P. In such a world, we inevitably need a blockchain with:
- High volume, high speed, low cost tx
- High usability with smooth, easy-to-use interfaces
5/
$NEAR is purposefully designed to overcome current limitations.
It aims to become this blockchain platform by using a virtual machine (like ETH has) on top of a blockchain that can adjust its capacity dynamically by splitting computations into parllel processes (Sharding).
$NEAR is purposefully designed to overcome current limitations.
It aims to become this blockchain platform by using a virtual machine (like ETH has) on top of a blockchain that can adjust its capacity dynamically by splitting computations into parllel processes (Sharding).
6/
In simple terms, sharding allows for distributing computations to shards, which are additions to the main blockchain, in order to increase efficiency.
The shards themselves have a feedback loop to the main chain to assure security and protection of any transaction.
In simple terms, sharding allows for distributing computations to shards, which are additions to the main blockchain, in order to increase efficiency.
The shards themselves have a feedback loop to the main chain to assure security and protection of any transaction.
7/
$ETH will implement this principle, too. So why is $NEAR relevant?
Currently, $NEAR operates 4 shards. However, it is designed such that shards can be dynamically split and merged based on network capacity requirements.
This makes $NEAR more resilient towards usage spikes.
$ETH will implement this principle, too. So why is $NEAR relevant?
Currently, $NEAR operates 4 shards. However, it is designed such that shards can be dynamically split and merged based on network capacity requirements.
This makes $NEAR more resilient towards usage spikes.
8/
This technology is not fully implemented yet, but will follow a 4-Phase program:
Phase 0: Increase throughput (implemented)
Phase 1: Chunk-Only Producers (implemented)
Phase 2: Nightshade (Q3 2022)
Phase 3: Dynamic Resharding (tbd)
Let's look at the upcoming phases 2/3👇
This technology is not fully implemented yet, but will follow a 4-Phase program:
Phase 0: Increase throughput (implemented)
Phase 1: Chunk-Only Producers (implemented)
Phase 2: Nightshade (Q3 2022)
Phase 3: Dynamic Resharding (tbd)
Let's look at the upcoming phases 2/3👇
9/
Phase 2
Four shards have been set up during Phase 1.
Now, state and processing of the chain will converge towards being fully sharded by implementing challenges.
This will reduce hardware requirements for validators, which is an intrinsic req. for true decentralization.
Phase 2
Four shards have been set up during Phase 1.
Now, state and processing of the chain will converge towards being fully sharded by implementing challenges.
This will reduce hardware requirements for validators, which is an intrinsic req. for true decentralization.
10/
True decentralization and $BTC:
Did you know that 53% of the mining power for the $BTC network comes from three mining pools?
Doesn't sound very decentralized does it?
The main issue is the entry barrier for hardware to become a miner. $NEAR solves this. Pun intended.
True decentralization and $BTC:
Did you know that 53% of the mining power for the $BTC network comes from three mining pools?
Doesn't sound very decentralized does it?
The main issue is the entry barrier for hardware to become a miner. $NEAR solves this. Pun intended.
11/
Phase 3
After creating a truely decentralized validator network, dynamic resharding will be implemented.
This means $NEAR network will be capable of dynamically splitting and merging shards, making it almost infinitely scalable.
This resolves any issues around usage spikes
Phase 3
After creating a truely decentralized validator network, dynamic resharding will be implemented.
This means $NEAR network will be capable of dynamically splitting and merging shards, making it almost infinitely scalable.
This resolves any issues around usage spikes
12/
Now moving on from the technology, which is promising for the idea of an Open Web, to what is more interesting for investors.
The $NEAR ecosystem.
Again, $NEAR does something intrinsically different here than other protocols👀
Now moving on from the technology, which is promising for the idea of an Open Web, to what is more interesting for investors.
The $NEAR ecosystem.
Again, $NEAR does something intrinsically different here than other protocols👀
13/
Remember how #ICO s took off on $ETH and led to a bloodbath after the bullrun with investors loosing large chunks of their money?
Well, back in the day ICOs were the only way for companies to raise money in a decentralized manner.
$NEAR has a different approach.
Remember how #ICO s took off on $ETH and led to a bloodbath after the bullrun with investors loosing large chunks of their money?
Well, back in the day ICOs were the only way for companies to raise money in a decentralized manner.
$NEAR has a different approach.
14/
$NEAR has an automatic incentivization mechanism for developers.
Network fees are distributed to contracts based on contract calls and interactions.
Hence, developers that build successful products are rewarded by the ecosystem itself. No need for an ICO to raise funds.
$NEAR has an automatic incentivization mechanism for developers.
Network fees are distributed to contracts based on contract calls and interactions.
Hence, developers that build successful products are rewarded by the ecosystem itself. No need for an ICO to raise funds.
15/
For retail investors this can be both good and bad.
Good: Less likely to invest in an ICO that never builds a product.
Bad: You can't just buy a token but likely have to actively participate in the ecosystem to be egligle for receiving tokens.
For retail investors this can be both good and bad.
Good: Less likely to invest in an ICO that never builds a product.
Bad: You can't just buy a token but likely have to actively participate in the ecosystem to be egligle for receiving tokens.
16/
Now, what could be interesting ecosystem plays on $NEAR?
We've extracted three interesting plays:
$TRI: DEX
$AURORA: ETH compatability protocol
$REF: DeFi hub on $NEAR
We will publish another thread with our assessment of the $NEAR ecosystem as investors soon. Stay tuned!
Now, what could be interesting ecosystem plays on $NEAR?
We've extracted three interesting plays:
$TRI: DEX
$AURORA: ETH compatability protocol
$REF: DeFi hub on $NEAR
We will publish another thread with our assessment of the $NEAR ecosystem as investors soon. Stay tuned!
17/
Now, what is the future of $NEAR @NEARProtocol? Some things to look out for:
(i) Private Sharding: Limitless scalability
(ii) Mobile Nodes: True decentralization
Now, what is the future of $NEAR @NEARProtocol? Some things to look out for:
(i) Private Sharding: Limitless scalability
(ii) Mobile Nodes: True decentralization
18/
Private Sharding
Not all use-cases in crypto require security and protection of a public chain for each tx.
Hence, entities could run their own shard.
Think of this as shards for businesses, networks, individuals, etc.
The technology of $NEAR is ready to implement this.
Private Sharding
Not all use-cases in crypto require security and protection of a public chain for each tx.
Hence, entities could run their own shard.
Think of this as shards for businesses, networks, individuals, etc.
The technology of $NEAR is ready to implement this.
19/
Mobile Nodes
Due to the low hardware requirements introduced by $NEAR 's dynamic sharding mechanism, literally any available CPU could become a validator.
Your laptop.
Your phone.
Your smart TV.
True decentralization after all.
It was always the ultimate goal.
Mobile Nodes
Due to the low hardware requirements introduced by $NEAR 's dynamic sharding mechanism, literally any available CPU could become a validator.
Your laptop.
Your phone.
Your smart TV.
True decentralization after all.
It was always the ultimate goal.
20/
We hope this gave you a good idea of what all the chatter about $NEAR is all about.
If you liked this, stay tuned via following us for our update on $NEAR ecosystem plays that you should keep an eye on.
Oh yeah, chart also looks ready to moon. So let's f* go.
Minotaur out.
We hope this gave you a good idea of what all the chatter about $NEAR is all about.
If you liked this, stay tuned via following us for our update on $NEAR ecosystem plays that you should keep an eye on.
Oh yeah, chart also looks ready to moon. So let's f* go.
Minotaur out.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
