Why we see NEAR Protocol as a Web3 Infrastructure Leader

The number of blockchains that developers can build on is growing every single day, each with their own distinct features and capabilities. So why do we believe NEAR is such a great choice? Our company has been working in the crypto sphere since our inception, assisting a range of clients working with different blockchains. For that reason we have developed an understanding of blockchain infrastructure from a technical perspective, and also seen how different projects run their marketing activities, engage with communities, and inspire developers and users to join their ecosystems. In this article we’ll explore the concrete reasons why we believe NEAR Protocol is an all-round great project to be involved with from any perspective.

NEAR Blockchain: In Short

NEAR is a public Proof of Stake (PoS) blockchain for hosting decentralized applications (Dapps) through the deployment of smart contracts. Similar to Ethereum, it was once described as a competitor, although this idea has fallen out of fashion as the major blockchains have become more interoperable. NEAR provides cross-chain capabilities, meaning that Ethereum-compatible Dapps can be launched on NEAR with minimal changes, taking advantage of the blockchain’s speed, security, and scalability.

Here are some of NEAR’s main features:

Carbon neutral

NEAR uses the PoS consensus mechanism, which is favored as a greener and more energy efficient alternative to Proof of Work, and has actually been awarded the Climate Neutral product label by South Pole, an organization that works with businesses to implement ecological solutions. Their audit found that NEAR was 200,000x more energy efficient than Bitcoin.

Advanced sharding

Scalability is the key to making sure that blockchains can serve the needs of an increasing number of users, with NEAR’s sharding architecture, Nightshade, built as a way to ensure that the network can work at full capacity at all times, easing congestion during peak times without having to rely on Layer 2 solutions.

Fast transactions and low fees

Related to both its PoS consensus mechanism and sharding capabilities, NEAR boasts transactions that are extremely fast and affordable, often much less than $1 and with near-instant finality.

Multichain functionality

We mentioned interoperability between blockchains above, with NEAR providing solutions for both developers and users to connect to Ethereum, the largest ecosystem of Dapps on the market:

• Aurora – An Ethereum Virtual Machine created by NEAR Protocol, Aurora allows developers to launch Ethereum compatible applications on the NEAR network.
  
• Rainbow Bridge – A way for users to quickly and easily transfer Ethereum and other ERC-20 assets to the NEAR network.

Developer and user friendly

One of NEAR Protocol’s key priorities is ensuring ease-of-use on both the side of the developer and user.

• For developers, features include:
  
  • Guilds — specialists teams of experienced developers from around the world who provide support to those creating a Dapp on the NEAR blockchain.
    
  • Fair payment from fees that their smart contracts generate.
    
  • Grants from the NEAR Foundation.
    
  • CLI, SDKs, APIs, and other tools to assist efficient and cost-effective development using different languages, even JavaScript.

• For users, features include:
  
  • Human readable account names, in contrast to the usual cryptographic wallet addresses.
    
  • The ability to explore NEAR Dapps without having to connect a wallet.
    
  • Educational blogs, guides and tutorials to help new users navigate the world of DeFi and Web3.
    

Native stablecoin

In April 2022, the NEAR-native stablecoin, $USN, was launched through the Decentral Bank DAO. Over-collateralized by USDT in the short term, phase two will see it be backed by a range of different assets, including NEAR and ETH. This marks a big development, allowing users to take advantage of:

• A stable medium of exchange between NEAR-based DeFi protocols.
• Arbitrage opportunities should the price temporarily diverge from its $1 peg.
• Greater usage and stability of the $NEAR token.

Active community

While we have mentioned this last, it is definitely not least in terms of importance. Every project attempts to build a following, but NEAR take this to the next level, building a space for the exchange of knowledge and new ideas. Rather than a cult of personality like structure, NEAR really tries to go beyond mere engagement to cultivating active participation.

This is encouraged through different spaces that align with the interests of the varied parties who come to NEAR. 

• The Open Web Sandbox is for those who have development ideas and want to explore project proposals. 
• Community events provide networking opportunities, such as the upcoming NEARCON in Lisbon, Portugal.
• A vast store of educational resources cover both the technical aspects of building for Web3, and what different projects hope to deliver from a visionary standpoint.
• Different social media hubs allow community members to connect.
  

What makes these spaces so inviting is that NEAR doesn’t operate like an exclusive club. The message is that anyone can be involved, even if they don’t yet know the first thing about blockchain.

NEAR is Growing – Key Info

Due to the many features mentioned above, the NEAR ecosystem — which only launched on the mainnet in 2020 — is growing at a huge rate. Here are some figures to give you an idea of the blockchain’s expansion.

• Number of accounts – NEAR boasts around 17 million accounts at the time of writing, up from just 3 million, six months ago.
  
• Number of projects – Over 700 projects are now built or being built on the NEAR, Aurora, and Octopus networks.
  
• Number of transactions – Transactions are steadily increasing, averaging around 350,000 per day over the last month.
  
• Number of active developers – From 2020 – 2021, the number of active developers grew by 4x on the NEAR network, one of the largest increases. This is extremely promising, after all, not only is this a vote of confidence, but more projects equals more users.

Top NEAR Projects

So we’ve had an overview of NEAR’s features and seen how the blockchain is sustainably growing in terms of users and developers. Working with INC4, a NEAR Guild, we’ve seen certain projects develop from their early stages into fully-formed and successful products. In the case of PembRock Finance (below), we have been the dedicated marketing team from the very beginning.

Here are four of those projects:

Ref Finance

Operating through AMM smart contracts, Ref Finance is NEAR’s leading DEX, allowing users to swap, stake, provide liquidity, and farm, all while taking advantage of NEAR’s fast transactions and ultra-low fees. 

Users of Ref Finance can benefit from multiple pools in one contract, atomic transactions, a customizable pool fee, and optimal returns for pools comprised of stable assets. This is thanks to Ref’s multi-chain aggregator, which aggregates data from decentralized exchanges across NEAR and Aurora to leverage liquidity for better prices and lower trading slippage.

Burrow

A lending platform similar to Aave and Compound, Burrow calls itself an interest rate market protocol, unlocking yields from base layers through tokens such as stNEAR and stETH, as well as unlocking yields on tokens based on other blockchains, thanks to NEAR’s Rainbow Bridge.

One of Burrow’s most interesting features is its self-paying loans. This works by users putting up collateral for loans that itself earns interest, in effect, paying off the amount that has been borrowed over time.

PembRock Finance

PembRock is NEAR’s first leveraged yield farming protocol, allowing farmers to leverage their assets by up to 3x for greater rewards. PembRock’s user-friendly interface makes leveraged farming as seamless as possible, with customizable positions, integration with Ref Finance, farming automation, and autocompounding returns, all while taking advantage of NEAR’s great features.

The fact that users can leverage funds and access a range of currencies means that a range of different strategies can be taken advantage of to profit no matter the prevailing market conditions. There are also bonuses for early adopters, where they can get a share of the native $PEM token, which in the near future will be able to be staked for protocol profit and decision-making rights as part of the PembRock DAO.

Open Forest Protocol

Open Forest Protocol is a blockchain-based open-source platform for the communal verification, reporting, and financing of forestry projects. With a mission to accelerate the global response to climate change through eco-friendly solutions, OFP’s main focus is MRV, or the ability for reforestation projects, conservation organizations, and forest managers to measure, report, and verify environmental data from their land.

So far, the project has 29 projects onboarded, accounting for 25k+ hectares of land that is being validated. All information can be accessed and monitored across an easy-to-use dashboard.

Working with NEAR

As we have seen, NEAR is not just another layer 1 solution, but a thriving and rapidly developing ecosystem. NEAR is a blockchain that puts the needs of users first, while providing continuous support to developers through an expert team, grants, and the expertise of NEAR Guilds. This brings many new opportunities and a favorable environment for construction—without unnecessary competition— that is hard to find elsewhere. 

We can see the results of this approach by looking at the sheer range of Dapps on NEAR; there are projects related to the metaverse, gaming (P2E), the environment, music, and of course, decentralized finance. Supportive all these innovative niches places NEAR at the very center of Web3 development.

You might be wanting to take advantage of NEAR’s strong infrastructure, excellent support, and growing community—but how can this be done in the best way? The answer is simple: you need a competent and experienced partner who knows the NEAR ecosystem and can best leverage you product for success, through solid tried-and-tested marketing strategies. That’s exactly what the 42DM Team is here to provide. 

42DM as your NEAR marketing partner

We have been involved in blockchain since 2017 and have worked with NEAR Protocol for 2 years, leveraging experience gained from working with other promising crypto and blockchain projects. We firmly understand what it takes to position a product and demonstrate its value within an active community.

The results? Working with a leading software developer who is building amazing products on NEAR, we got his team’s product into the top 6 in just three months! We know how to attract new users to NEAR and its products, helping to develop an engaged community that is the basis for long-term growth.

To find out more about our work and see how we can assist your innovative idea, reach out to us for any queries, or come and chat to us at NEARCON in Lisbon!