Research Summary
The report provides a comprehensive analysis of the NEAR Protocol, a smart contract platform that uses a Thresholded Proof of Stake consensus algorithm. It covers key metrics, financial overview, network usage, development, decentralization and security, governance, and ecosystem overview. The report also highlights the launch of KAIKAINOW, which significantly increased network activity, and the advancements in the Blockchain Operating System (BOS).
Key Takeaways
Network Usage and Development
- Increased Network Activity: The report highlights a significant increase in network activity, with a 350% QoQ increase in active addresses and a 117% QoQ increase in transactions. This surge is largely attributed to the introduction of KAIKAINOW, a technology that leverages blockchain and AI to deliver tailored content on smartphone lock screens.
- Developer Support: NEAR places a strong emphasis on supporting developers. It offers an extensive suite of tools tailored for developers working within its ecosystem. This includes SDKs dedicated to popular coding languages, sandbox environments, a NEAR CLI, and NEAR Developer Governance.
- Decentralization Efforts: NEAR has established the NEAR Dev Hub as part of its decentralization efforts. The Dev Hub serves as a resource repository for developers, facilitating collaboration and innovation within the NEAR ecosystem.
Decentralization and Security
- Thresholded Proof of Stake Consensus Mechanism: NEAR employs a Thresholded Proof of Stake (TPoS) consensus mechanism, consisting of three distinct validator roles: Block Producers, Chunk-Only Producers, and Hidden Validators. This mechanism enhances the network’s capacity and security.
- Staking: NEAR Protocol enables staking through running a validator node or delegation, rewarding participants with inflationary NEAR tokens and storage staking benefits. By the end of Q3, 609 million NEAR (53% of total supply) was staked.
Governance
- Community DAOs: The NEAR Foundation is working towards a more decentralized model of capital allocation by handing over decision-making to community DAOs. The first community DAOs have already been created, each with a specific focus and mandate.
- Community Treasury: In addition to the NEAR Foundation’s treasury, the NEAR ecosystem has a community treasury. In the third quarter, the NEAR Foundation launched a Grassroots Support Initiative to support projects, allocating 15 million NEAR to the NDC Community Treasury.
Blockchain Operating System (BOS)
- BOS Launch: In March, NEAR launched the Blockchain Operating System (BOS), an open-source platform enabling developers to develop on any blockchain using popular languages and community-developed components. It provides users the opportunity to connect with various communities and applications while maintaining their data’s privacy, all without the requirement of owning crypto.
- NEAR Social: NEAR Social serves as the social layer of the BOS. It offers a peer-to-peer network for social interactions, content creation, and distribution. Users own their data, developers can access public data to create apps, and customizable widgets foster innovation.
Actionable Insights
- Investigate the Potential of KAIKAINOW: The launch of KAIKAINOW has significantly increased network activity on the NEAR Protocol. This technology, which leverages blockchain and AI to deliver tailored content on smartphone lock screens, could present opportunities for further growth and innovation.
- Explore the Benefits of the BOS: The Blockchain Operating System (BOS) offers a unified platform for developing, browsing, and discovering experiences on any blockchain. Its features, such as FastAuth SDK Beta, Web Push Notifications, and the NEAR Query API (Beta), could provide significant advantages for developers and users alike.
- Consider the Impact of Community DAOs: The creation of community DAOs by the NEAR Foundation represents a shift towards a more decentralized model of capital allocation. This could have significant implications for decision-making and governance within the NEAR ecosystem.
- Assess the Opportunities in NEAR Social: NEAR Social, the social layer of the BOS, offers a peer-to-peer network for social interactions, content creation, and distribution. The growth and engagement on this platform could present opportunities for developers and users.
