NEAR Protocol (NEAR) is a layer-one blockchain that functions as a community-run cloud computing platform. It aims to address challenges such as slow transaction speeds, low throughput, and limited interoperability that have been a hurdle for other blockchains. NEAR Protocol provides a conducive environment for decentralized applications (DApps) and aims to create a platform that is both developer and user-friendly. For instance, NEAR uses human-readable account names, unlike the cryptographic wallet addresses common to other platforms. NEAR Protocol also introduces unique solutions to scaling problems and has its own consensus mechanism known as "Doomslug."

NEAR Protocol utilizes its Nightshade technology with the aim of enhancing transaction throughput. Nightshade is a variant of sharding, where individual sets of validators process transactions in parallel across multiple sharded chains, thereby aiming to improve the overall capacity of the blockchain. Unlike traditional sharding, shards in Nightshade produce a fraction of the next block, referred to as "chunks." This allows NEAR Protocol to strive for up to 100,000 transactions per second and near-instant transaction finality with a one-second block cadence, while aiming to keep transaction fees low. NEAR Protocol also simplifies the onboarding process of other blockchains by using human-readable addresses and building decentralized applications with a similar registration flow to what users are already familiar with.

NEAR Protocol is designed with the aim of managing high-value assets and making them accessible for everyday people. It provides a platform for the development of various projects. For instance, Flux, a protocol that enables developers to create markets based on assets, commodities, and real-world events, and Mintbase, a platform for minting non-fungible tokens (NFTs), are examples of projects being built on NEAR Protocol. The NEAR token is intended to be used for processing transactions and storing data, running validator nodes on the network via staking NEAR tokens, and for governance votes to determine how network resources are allocated.

NEAR Protocol was founded by Erik Trautman, Illia Polosukhin, and Alexander Skidanov. Trautman is an entrepreneur with Wall Street experience and the founder of Viking Education. Polosukhin has over a decade of industry experience, including three years at Google. Skidanov is a computer scientist who worked at Microsoft and later joined memSQL, where he became the director of engineering. The NEAR Protocol team includes several International Collegiate Programming Contest (ICPC) gold medalists and winners. The protocol was launched on April 22, 2020. The NEAR Foundation, a Swiss-based non-profit, is dedicated to protocol maintenance, ecosystem funding, and guiding the protocol's governance.

NEAR Protocol aims to provide a scalable and user-friendly solution for hosting decentralized applications (dApps). It employs a unique sharding process to address scalability issues, splitting the network into smaller parts to allow transactions and computations to run in parallel across multiple nodes, thereby aiming to increase throughput. NEAR Protocol also aims to maintain low transaction costs, charging less than 0.00001 NEAR, or less than one cent per transaction. In addition, NEAR Protocol supports WebAssembly (WASM), which enables developers to write their dApps and smart contracts in various programming languages such as Java, C, C++, and Rust. Unlike the Ethereum's smart contract language, Solidity, which is commonly used in many Layer 1 platforms, NEAR Protocol supports multiple programming languages. NEAR Protocol's wallet functions in a manner similar to traditional Web2 apps, aiming to provide a user-friendly experience.

NEAR Protocol utilizes a distinct consensus mechanism known as Nightshade. This mechanism is grounded in the concept of sharding, which involves segmenting the network into smaller, more manageable sections referred to as shards. Each shard has the capacity to process transactions and execute smart contracts independently, which aims to enable parallel processing and potentially improve transaction throughput. NEAR Protocol's consensus mechanism ensures that every transaction on the blockchain is publicly visible, which aims to enhance transparency and accountability. It also strives to encourage network participation by acknowledging nodes that process transactions. This consensus mechanism is a crucial element in NEAR Protocol's intention to provide a scalable platform for decentralized applications.

Developers play a crucial role in building decentralized applications (DApps) on the NEAR Protocol. They utilize the NEAR Software Development Kit (SDK) and other developer tools to create, test, and deploy smart contracts and DApps. Developers have the opportunity to write their smart contracts in familiar programming languages, reducing the need to learn new ones. They have access to extensive documentation and regular support opportunities to assist them in their development journey. Developers can leverage NEAR's sharding technique, which breaks down the computational data load into smaller parts, increasing scalability and enabling high throughput of transactions. This positions NEAR as a potential platform for building DApps that require high performance and scalability. Developers receive non-financial incentives for transaction processing, work on projects, or even get grants for their ideas, providing them with various participation opportunities.

NEAR Protocol's sharding approach, known as Nightshade, aims to offer improvements in scalability without compromising security or decentralization. This approach partitions the blockchain into smaller, more manageable segments called shards, each with the capability to process transactions and execute smart contracts independently. This aims to increase transaction throughput. NEAR Protocol's sharding approach also introduces stateless validation, a method of updating the status of all data posted to the blockchain. With stateless validation, validators no longer have to maintain the state of a shard locally and can retrieve all the information they need to validate state changes from the network. This allows shards to function mostly independently at the consensus level, with the intention of enhancing decentralization and throughput while maintaining security measures. The implementation of stateless validation also seeks to reduce the hardware requirements to run most validator nodes, with the intention of facilitating further decentralization of the network.

The NEAR token is the native utility token of the NEAR Protocol ecosystem. It has a role in maintaining the network's security by facilitating consensus and preventing network abuse. Validators, also known as node operators, need to stake a certain amount of NEAR tokens to validate blocks. The NEAR token is also used to cover transaction fees on the NEAR blockchain. These fees must be paid in the native token, and a portion of the collected fees is allocated to smart contract developers, while the remainder is removed from circulation. The NEAR protocol also allows users to store data on the blockchain to deploy smart contracts, and these data storage fees are paid in the native NEAR token. The NEAR token also plays a part in the validation of blocks on the network, with stakers receiving non-financial incentives.

NEAR Protocol utilizes a consensus mechanism known as Threshold Proof-of-Stake (TPOS) to manage its network and uphold the integrity of its blockchain. Validators, who are integral to this system, stake or lock up NEAR tokens, thereby establishing a commitment to the network's operations. This collateralization acts as a measure of their dedication to the network’s security and reliability. Validators participate in key functions such as processing transactions, validating new blocks, and monitoring the activities of other validators. The TPOS consensus mechanism aims to improve security and decentralization by requiring validators to meet a threshold level of staked tokens. This requirement ensures that those who contribute to securing the network have a tangible stake in its success and are economically disincentivized from engaging in harmful activities. NEAR Protocol also implements measures to manage users’ personal information against accidental loss and unauthorized access, use, alteration, and disclosure. Users are given a password for accessing specific sections of the NEAR Protocol website, apps, and tools, and it is their responsibility to maintain the confidentiality of this password. NEAR and its partners strongly advise against sharing passwords with anyone and suggest periodic password changes. This precautionary step contributes to improved security measures.

The Rainbow Bridge is a feature of the NEAR Protocol that aims to enable the transfer of tokens between Ethereum, NEAR, and Aurora. This bridge is designed to be permissionless and trustless, meaning it strives to operate without any third-party approval or trust. The concept of the Rainbow Bridge is based on the idea of locking tokens on one network and creating an equivalent amount on another network, with the goal of maintaining the global supply of the token. This process is designed in a way that aims to operate without the need for trust in any third party. The Rainbow Bridge uses a combination of smart contracts, known as LiteNodes and Connectors, and scripts called Relayers to facilitate this process. This bridge is significant for cross-chain asset transfers as it aims to facilitate the movement of assets between different blockchain networks, aiming to improve interoperability and flexibility within these networks.

NEAR Protocol has established several noteworthy partnerships within the blockchain industry. One of these collaborations is with ZEP, a metaverse platform in South Korea. This partnership strives to onboard users and develop ZEP's Web3 capabilities, with ZEP intending to build on NEAR Protocol when collaborating with major IPs. Another important partnership is with Mirae Asset, a subsidiary of a financial group in Asia. This collaboration aims to bridge the gap between traditional finance and Web3, with the intention of fostering innovation and growth in the sector. NEAR Protocol has also teamed up with the International Cricket Council (ICC), marking an expansion of blockchain technology into the realm of sports. In addition, NEAR Protocol has partnered with Alibaba Cloud with the intention of contributing to the development of Web3 in Asia and the Middle East. Lastly, NEAR Protocol has collaborated with Nym Technologies, a privacy-focused infrastructure startup, to integrate the Nym mixnet into the NEAR ecosystem, with the aim of providing privacy to all traffic on Near’s blockchain.

Governance within the NEAR Protocol ecosystem is managed through the use of a governance token, known as $LNR. This token allows holders to contribute to the decision-making process of the NEAR Protocol and influence its development. Token holders can allocate $LNR to an insurance fund, designed to mitigate potential risks. Participants are allocated $sLNR as a representation of their contribution to the fund. $sLNR holders have the ability to contribute to the setting of rates for $LiNEAR and $bLiNEAR allocation pools, participate in delegation strategies, and monitor the protocol treasury. They also have a share in the protocol’s agreement revenue, with potential adjustments as the ecosystem evolves. New $LNR tokens are periodically introduced into the insurance fund, contributing to $bLiNEAR-related liquidity and supporting governance. This approach seeks to foster a decentralized and community-driven ecosystem.