NEAR Blockchain Overview

[https://near.org/]
  • End-User Usability — Easy user onboarding with Single Sign-On (SSO) functionality, easy subscriptions and predictable resource pricing.
  • Developer usability — Run Web Assembly (WASM) smart contract code written in Rust or AssemblyScript, robust tools and predictable pricing.
  • Scalability — NEAR Protocol uses sharding approach to increase network capacity.
  • Efficient development and evolution — Very strong technical core team behind NEAR Protocol working on its evolution.
  • Real decentralization — Supported by many independent validators who stake enough NEAR to earn a validator seat.

NEAR Economics

  • Thresholded Proof of Stake: Validators stake sufficient amount of NEAR tokens (currently around 3M) and provide computational resources for earn validator rewards. Any malicious validator who tries to cheat system in any way will have his staked NEAR tokens slashed.
  • Epoch Rewards: All node operators (validators) are earning rewards in NEAR tokens of about 4.5% of annualized from total tokens supply in order to secure network. Each validator reward is scaled based on its performance metrics.
  • Protocol treasury: Treasury receives 0.5% from total tokens supply annually to reinvest into ecosystem development.
  • Transaction costs: Each transaction consumes network and computation resources, which are paid in predictable cost per transaction fee paid in NEAR tokens.
  • Storage costs: Storage is a long term cost for storing data on each network node. Storage costs are paid by staking enough tokens on account using storage and paid indirectly through inflation on total stake.
  • Inflation: Total max annual inflation if 5% of total token supply. As more transaction fees are burned this number will go down and with enough transactions can even go negative.
  • Scaling and security thresholds: network will scale with growing load is economic in nature.
  • Validators: Provide the computational resource and security for the network by running nodes.
  • Developers: Create the applications which run atop the network
  • Token Holders: Accounts or applications which maintain token balances
  • NEAR Foundation: An independent entity which coordinates the governance and technical evolution efforts of the network participants.
  • Third Party Observers: The observers of the chain who provide extra fraud and bad behavior protection.
  • Users: Users of applications on the network who do not maintain token balances.

NEAR Technology

  • Sharding: The system is designed to scale horizontally and near-infinitely by distributing computation across multiple parallelized shards.
  • Consensus: Consensus is achieved across all of the nodes which make up the network operators across all of the shards using the new Nightshade algorithm.
  • Staking Selection and Game Theory: To participate in the validation process, stakers are selected using a secure randomized process which optimally distributes seats across parties and provides incentives for them to operate with good behavior.
  • Randomness: NEAR’s randomness approach is unbiasable, unpredictable and can tolerate up to 1/3 of malicious actors before liveness is affected and 2/3 of malicious actors before any one can actually influence its output.
  1. Dual Validation: Have the validators for the receiving chain also validate on the sending chain.
  2. Trust the Transaction: Assume that if a transaction has been received, it must be valid.
  3. Beacon Chain w/ Rollback: A beacon chain verifies the state transitions all of the other chains using a small subset of validators and, if a problem is detected, all chains are rolled back. To achieve atomicity, this reversion should happen, though it should happen only rarely and should be immediately detected.

NEAR is using Nightshade sharding protocol:

Governance

More resources and references:

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Eugene Luzgin

Eugene Luzgin

Software technology leader and problem solver with diverse track record in software industry roles ranging from individual contributor to a startup founder.