Research Summary
- The report discusses the role and significance of Layer 1 (L1) blockchains in the era of Layer 2 (L2) solutions.
- NEAR Protocol, a Proof-of-Stake blockchain, offers low transfer fees and fast transactions. It was designed as an alternative to Ethereum without relying on L2 scalability.
- NEAR’s efficiency is attributed to its unique sharding solution, Nightshade, which allows for infinite scaling.
- The report highlights the importance of L1s even with the rise of L2s, emphasizing that L2s aren’t a replacement for base layer innovation.
- NEAR Protocol is designed for high throughput and can handle larger state and execution loads than most chains.
- Aurora, NEAR’s EVM Chain, is similar to L2s and offers features like native gas abstraction and full composability with other Aurora rollups.
- The endgame vision for NEAR Protocol is to build a true web 3 with the Blockchain Operating System (BOS), aiming for full-stack decentralized applications.
Actionable Insights
- Consider L1’s Role: Despite the rise of L2s, L1 blockchains like NEAR Protocol still play a crucial role in the blockchain ecosystem.
- Explore NEAR’s Features: NEAR’s unique sharding solution, Nightshade, offers infinite scaling and fast transactions.
- Understand Aurora’s Value: Aurora, as NEAR’s EVM Chain, provides features that make it stand out among other Ethereum L2s.
- Stay Updated on NEAR’s Roadmap: NEAR has several upcoming features, including improved BOS and synchronous sharding, that can impact the crypto landscape.
- Recognize NEAR’s Endgame Vision: NEAR aims to be a critical infrastructure for web 3, powering most popular user interfaces in the decentralized web.
