Although I like Ethereum (ETH) and all its layer-2s, I usually prefer to use real layer-1s since I do not want to depend only on Ethereum (we never know...). Last time I wrote an article on Avalanche (AVAX), which is one of the most decentralized layer-1s. This time I will write about Near protocol (NEAR).
What is Near Protocol?
Near Protocol is a blockchain platform designed for fast and scalable decentralized applications. It uses a proof-of-stake consensus mechanism and aims to provide a user-friendly platform for developers and users to build and use decentralized apps (dApps).
How does Near Protocol differentiates from the other blockchains?
Near Protocol differentiates itself from other blockchains by offering a scalable, fast, flexible, cost-effective, and secure solution for DeFi and other decentralized applications:
Scalability: Near Protocol uses sharding technology to divide its network into smaller partitions, making it more efficient in terms of processing speed and storage. This allows the network to handle a higher volume of transactions, making it more scalable than other blockchains.
Speed: Near Protocol offers fast transaction times, making it a suitable solution for applications that require real-time data processing.
Flexibility: Near Protocol provides developers with the ability to build and deploy a wide range of applications and use cases, including games, decentralized exchanges, and marketplaces.
Cost-effective: The Near Protocol network is designed to be more cost-effective than other blockchains, with low transaction fees and minimal network congestion.
Security: The Near Protocol network is built on the consensus mechanism, which provides a secure and reliable platform for decentralized applications.
Why and how do I use Near Protocol in my layer-1 portfolio?
I use Near Protocol because I believe in the potential of sharding technology and think that NEAR has more room to grow than Elrond (EGLD), due to the developer activity and the fact that Near Protocol offers an EVM (Ethereum Virtual Machine) compatible option through its layer-2 chain named Aurora.
Although staking on Near Protocol is easy to do and allows to earn staking rewards, I prefer to utilize Near Protocol through Aurora chain and use the liquid staked version of NEAR called stNEAR in order to borrow some USDC by lending stNEAR on a lending protocol called Aurigami. I can then reinvest these USDC into some other DeFi protocols which allows me to multiply the rewards. However, there are some risks associated... Please DYOR as usual.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
Please find below some referral links to earn a bit more crypto...
- Fountain: get paid to listen / referral code: 13d734149c
- Sweatcoin: get paid to walk
- Elrond: earn $10 EGLD with Maiar
