The Near Protocol is a smart contract-capable blockchain designed to overcome limitations of other systems, such as low transaction speeds, limited throughput, and poor cross-chain compatibility. As a decentralized application platform, it emphasizes accessibility and user-friendliness. NEAR, its native utility token, is integral to the platform’s operations.
This guide explores the Near Protocol, highlights where to buy NEAR, and explains the purchasing process in simple steps.
What Is NEAR Protocol?
The Near Protocol is a Layer 1, scalable Proof-of-Stake (PoS) blockchain built to enhance scalability and reduce costs for developers. Key innovations include its unique sharding technology, a distinctive transaction fee mechanism, and a powerful consensus mechanism known as 'Doomslug.'
Originally envisioned as a community-run cloud computing platform for hosting decentralized applications (dApps), NEAR aims to be scalable, decentralized, and secure while prioritizing user accessibility.
Transaction fees on NEAR are significantly lower than on blockchains like Bitcoin or Ethereum. As a Proof-of-Stake network, it consumes minimal electricity and has been rated carbon-neutral.
NEAR tokens serve multiple purposes within the ecosystem:
- Staking or delegation to validator nodes to support network operations
- Payment for transaction fees and data storage
- Usage in dApps, such as NFT marketplaces
- Participation in on-chain governance
The NEAR Collective, the protocol’s community, maintains the open-source code and supports ongoing development. Projects built on NEAR include Flux, Ref Finance, Astro DAO, Paras, and Mintbase.
Where to Buy NEAR
NEAR is available on several major cryptocurrency exchanges. When selecting an exchange, consider factors such as security, user experience, fees, supported coins, and regulatory compliance. Ensure the platform supports your preferred payment method and offers adequate customer support.
Below are five popular exchanges where you can purchase NEAR:
Kraken
Founded in 2011, Kraken is a reputable exchange with over 9 million active users and a quarterly trading volume exceeding $207 billion. It supports advanced trading tools like margin trading and offers over 200 digital assets, including NEAR. Available in over 190 countries, Kraken also allows users to earn up to 23% annually through staking.
Uphold
Uphold is a user-friendly platform popular in the United States and the United Kingdom. It supports a variety of cryptocurrencies, including NEAR, and features a customizable trading interface. Its one-step ordering feature simplifies trading directly from your preferred deposit method.
Nexo
Nexo provides a comprehensive platform for buying, borrowing, and managing cryptocurrencies. Operating since 2017, it serves over 4 million users globally and offers interest-earning opportunities on crypto assets. The Nexo Buy tool supports over 35 major cryptocurrencies, including NEAR, with fast processing times.
Binance
As the world’s largest crypto exchange by trading volume, Binance offers low fees, high liquidity, and support for over 600 cryptocurrencies, including NEAR. Its user-friendly interface and vibrant Peer-to-Peer (P2P) platform make it ideal for traders and investors in regions like Australia, Canada, Singapore, and the UK.
KuCoin
KuCoin is a major exchange supporting over 200 cryptocurrencies and 400 markets. It features bank-level security, a sleek interface, and a range of services including margin trading, futures trading, and staking. KuCoin is known for its low trading fees and support for fiat purchases via credit or debit cards.
Is NEAR Available on Coinbase?
NEAR is not currently supported on Coinbase or Coinbase Wallet. However, it is available on numerous other exchanges, as listed above.
Is NEAR Available on Crypto.com?
Yes, Crypto.com supports NEAR purchases. Users can buy NEAR using USD, EUR, GBP, and over 20 other fiat currencies. The platform also allows spending via the Crypto.com Visa Card at over 60 million retailers worldwide.
How to Buy NEAR on Crypto.com
Follow these steps to purchase NEAR on Crypto.com:
- Connect your DeFi Wallet to your Crypto.com App account.
- Select a wallet for the coins you wish to purchase.
- Link your credit/debit card by entering its details.
- Navigate to the ‘Buy’ tab and search for NEAR.
- Select NEAR and click ‘Buy Now.’
- Choose the network if multiple options are available.
- Enter the purchase amount and confirm the card details.
- Review and confirm the transaction within 15 seconds.
- Enter your account passcode and complete any required 3DS verification.
- Wait for the coins to arrive in your wallet.
Processing times may vary due to on-chain transaction speeds.
How to Buy NEAR on CoinStats
CoinStats allows users to buy NEAR directly with zero additional fees. The process is quick, secure, and supports credit card payments.
- Visit the CoinStats homepage.
- Navigate to the ‘Cryptocurrencies’ tab and select NEAR.
- Click ‘Buy Crypto.’
- Select a portfolio or add a wallet address for deposit.
- Choose MoonPay as the provider.
- Add your payment method credentials.
- Complete the payment.
What Makes NEAR Unique?
NEAR is an open-source, decentralized platform focused on accelerating dApp development. It aims to manage high-value assets like money and identity while ensuring resilience for users.
Key innovations include:
- Nightshade Technology: A sharding variant that processes transactions across multiple chains in parallel, significantly improving throughput. NEAR can handle up to 100,000 transactions per second with near-instant finality and near-zero fees.
- User-Friendly Features: Human-readable account names (instead of cryptographic addresses) and the ability to interact with dApps without a wallet.
- Modular Components: Tools that help developers quickly launch projects like token contracts or NFTs.
NEAR Token Economics
NEAR tokens are used for:
- Paying transaction fees and data storage costs
- Staking to run validator nodes
- Governance voting
Validators earn rewards of 4.5% of the total NEAR supply annually. Developers receive a share of transaction fees from their contracts, while the remaining fees are burned to increase scarcity. A protocol treasury receives 0.5% annually for ecosystem development.
NEAR also supports wrapped tokens from other chains and has built a bridge with Ethereum for transferring ERC-20 tokens.
NEAR Supply and Distribution
The total supply of NEAR is 1 billion tokens, distributed as follows:
- Community Grants: 17.2%
- Operation Grants: 11.4%
- Foundation Endowment: 10%
- Early Ecosystem: 11.7%
- Core Contributors: 14%
- Backers: 17.6%
- Small Backers: 6.1%
- Community Sale: 12%
The mainnet launched in April 2020 with 1 billion tokens. Annual inflation is 5%, with 4.5% going to validators and 0.5% to the treasury. Transaction fees are partially rebated to contracts, with the remainder burned.
Founders of NEAR Protocol
NEAR was co-founded by Alex Skidanov and Illia Polosukhin, both experienced developers. They met at Y Combinator and started the project in July 2018. The team includes former Google and MemSQL employees, with several members having won coding competitions like the International Collegiate Programming Contest (ICPC).
Network Security
NEAR uses a PoS variant called Doomslug, which enables near-instant finality through a two-round consensus. The NEAR Foundation, a Swiss non-profit, maintains the protocol, funds ecosystem development, and oversees governance.
How to Choose an Exchange for Buying NEAR
When selecting an exchange, consider:
- Security: Choose platforms with strong security measures and a good reputation.
- Payment Methods: Ensure the exchange supports your preferred method (e.g., credit card, bank transfer).
- Fees: Understand the fee structure to avoid hidden costs.
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How Does NEAR Work?
NEAR operates as a PoS blockchain with two key components:
Nightshade Sharding
This design allows nodes to maintain only a portion of the blockchain data, enhancing scalability and reducing fees. Nodes process data in "chunks" and add it to the main chain, minimizing points of failure.
Rainbow Bridge and Aurora
- Rainbow Bridge: Enables seamless transfer of Ethereum tokens to and from NEAR.
- Aurora: A Layer 2 scaling solution that allows Ethereum dApps to deploy on NEAR, combining low costs with Ethereum’s familiarity.
Frequently Asked Questions
Can I Buy NEAR With Cash?
There is no direct way to buy NEAR with cash. You can use platforms like LocalBitcoins to buy Bitcoin first, then transfer it to an altcoin exchange to purchase NEAR.
Are There Alternative Platforms to Buy NEAR With Credit Cards?
Yes, platforms like Changelly allow you to buy cryptocurrencies with credit cards and swap them easily. Its user-friendly interface simplifies the process for beginners.
What Is the Best Wallet for Storing NEAR?
Hardware wallets like Ledger or Trezor offer secure storage for NEAR. Software wallets such as NEAR Wallet or Trust Wallet are also popular options.
Is NEAR a Good Investment?
NEAR’s limited supply, staking rewards, and growing ecosystem potential may make it attractive. However, always conduct your own research and consider market risks before investing.
How Can I Stake NEAR?
You can stake NEAR directly through supported wallets or exchanges. Delegating to a validator node allows you to earn rewards proportionally to your stake.
What Is the Future of NEAR Protocol?
NEAR aims to become a leading platform for dApps by focusing on scalability, user experience, and cross-chain compatibility. Its innovative technology and growing community support its long-term vision.
Conclusion
NEAR Protocol offers a compelling alternative to Ethereum with its high speed, low fees, and strong focus on decentralization. Its user-friendly approach lowers barriers to Web 3.0 adoption, making it accessible even to crypto newcomers. With a limited token supply and growing ecosystem, NEAR has potential as a long-term store of value and a utility token for network operations.
As with any investment, conduct thorough research and consider your risk tolerance before purchasing NEAR.