NEAR Protocol

Introduction to NEAR Protocol

NEAR Protocol distinguishes itself through an unwavering focus on usability - both for developers building applications and users interacting with them. Founded by Illia Polosukhin (co-author of the “Attention is All You Need” paper that introduced transformers) and Alexander Skidanov, NEAR launched in 2020 with innovations like human-readable account names, predictable gas costs, and a sharded architecture called Nightshade.

The protocol has gained attention for its AI initiatives, leveraging co-founder Polosukhin’s background in machine learning. NEAR’s combination of technical innovation and user experience focus positions it as a platform for mainstream blockchain adoption.

The NEAR Approach

User Experience Focus

NEAR prioritizes accessibility:

Named Accounts: “alice.near” instead of “0x7f3e…” Predictable Fees: Developers can cover user gas costs Progressive Onboarding: Users can start without wallets Familiar Experience: Web2-like interactions

Developer Experience

Building on NEAR is streamlined:

• JavaScript/TypeScript SDK
• Rust smart contracts
• Familiar development patterns
• Quick iteration cycles

How NEAR Works

Nightshade Sharding

NEAR’s sharding approach:

Dynamic Sharding: Network adjusts shard count based on demand State Sharding: Each shard maintains portion of state Transaction Sharding: Cross-shard transactions handled automatically Validator Rotation: Validators assigned to shards randomly

Thresholded Proof of Stake

NEAR’s Proof of Stake variant:

• Validators selected by stake
• Slashing for misbehavior
• Delegation supported
• Era-based rewards

Cross-Shard Communication

Transactions spanning shards:

• Receipts pass between shards
• Asynchronous execution
• Eventual consistency
• Transparent to users

Technical Specifications

Metric	Value
Block Time	~1 second
Finality	~2 seconds
Consensus	Nightshade PoS
TPS	1,000+ (scales with shards)
Contract Language	Rust, JavaScript
Shards	4+ (dynamic)

Key Innovations

Account Model

Unlike most blockchains:

• Human-readable names (not just hashes)
• Account-level access keys
• Multiple keys per account
• Named sub-accounts (app.alice.near)

Meta Transactions

Enabling gasless interactions:

• Relayers submit transactions
• Applications pay for users
• Removes onboarding friction
• Similar experience to Web2

Fungible/Non-Fungible Token Standards

Native standards:

• NEP-141 (fungible tokens)
• NEP-171 (NFTs)
• Built-in royalties
• Composable standards

The NEAR Token

Utility

NEAR serves multiple purposes:

• Transaction Fees: Pay for computation and storage
• Staking: Secure the network
• Storage Staking: Pay for on-chain data
• Contract Deployment: Deploy applications

Tokenomics

• Total Supply: 1 billion NEAR
• Inflation: ~5% annually
• Distribution: Foundation, community, team
• Gas fee burning: 70% of fees burned

Ecosystem Development

DeFi Protocols

Growing DeFi ecosystem:

• Ref Finance: Leading DEX
• Burrow: Lending protocol
• Meta Pool: Liquid staking
• Linear Protocol: Synthetic assets

AI and Machine Learning

NEAR’s AI focus:

• NEAR AI: Research and development arm
• Chain Abstraction: AI-powered UX
• Agent Infrastructure: AI agent deployment
• Founder Background: Transformer paper co-author

Aurora

EVM compatibility layer:

• Deploy Solidity contracts
• Use Ethereum tooling
• NEAR security
• Bridge to Ethereum

Chain Abstraction Vision

Beyond Multi-Chain

NEAR’s vision for abstracting away chains:

• Users don’t need to know which chain they’re on
• Seamless cross-chain transactions
• Single account across networks
• AI-powered routing

Key Components

BOS (Blockchain Operating System): Frontend framework for multi-chain apps Chain Signatures: Sign transactions on any chain Account Aggregation: One identity, many chains

Competition and Positioning

vs. Ethereum

Aspect	NEAR	Ethereum
Sharding	Live	Roadmap
Account Names	Native	ENS required
TPS	1,000+	~15 (L1)
Developer UX	Focus area	Improving

vs. Solana

Aspect	NEAR	Solana
Architecture	Sharded	Monolithic
Language	Rust/JS	Rust
Account Model	Named	Public key
Finality	~2 seconds	~12 seconds

Challenges and Criticism

Ecosystem Size

• Smaller TVL than competitors
• Fewer applications
• Developer adoption growing but limited

Sharding Complexity

• Cross-shard transactions add latency
• Complex state management
• Potential edge cases

Competition

• Many L1s competing for developers
• L2s offering similar benefits
• AI narrative crowded

Recent Developments

Statelessness

Moving toward stateless validation:

• Validators don’t need full state
• Lower hardware requirements
• Improved decentralization

NEAR DA

Data availability layer:

• Support for rollups
• Lower cost than Ethereum
• Modular blockchain stack

AI Initiatives

Expanding AI focus:

• NEAR AI research
• Agent infrastructure
• AI-powered applications

Future Roadmap

Development priorities include:

• Full Sharding: Complete Nightshade rollout
• Chain Abstraction: Seamless multi-chain UX
• AI Integration: Agent infrastructure
• Statelessness: Reduced validator requirements
• Ecosystem Growth: Developer and user acquisition

Conclusion

NEAR Protocol’s focus on usability addresses real barriers to blockchain adoption. The combination of human-readable accounts, meta transactions, and familiar development patterns creates a more accessible platform than many competitors.

The AI angle, backed by co-founder Polosukhin’s credentials, adds a compelling narrative as the industry explores AI-blockchain intersection. The chain abstraction vision offers a path beyond the current fragmented multi-chain reality.

For developers seeking user-friendly blockchain infrastructure and for users frustrated by crypto’s complexity, NEAR offers a thoughtful alternative. The coming years will reveal whether technical excellence and user focus can translate into ecosystem growth sufficient to compete with more established platforms.