The NEAR protocol is a network that has been developing for some time. To verify new transactions NEAR employs a delegated proof of stake method. Token stakers often gain increased token ownership over time due to network fees, newly minted tokens, or other reward mechanisms.
Along with this technology, the developers came up with the term DoomSlug as a rapid means to confirm these transactions with super-speed finality, as well as a sorting mechanism capable of processing 100,000 transactions per second.
One of the most appealing parts of the NEAR protocol is its DAO-like structure, in which guilds or groups of individuals collaborate on certain protocol components. This implies that community members can readily contribute if they so want. Also, NEAR recently announced an incentive scheme worth $800 million for users, which will be major news once it debuts and more DeFi applications move there.
Because NEAR is developed from the ground up, developers must start from scratch when creating apps, albeit there is a workaround. A simple approach is to develop a subnet that can execute Ethereum apps on an EVM called Aurora.
EVM is significant since Aurora is essentially what it is. The Ethereum virtual machine is abbreviated as EVM. According to Medium, this layer is required to increase software portability and to ensure that programs are isolated from one another and their host.
This code runs Ethereum and its smart contracts. Many other projects have taken this code, tweaked it a little, and rebranded it as their own blockchain. For example, the Binance smart chain XDI and Polygon Network have done just that.
If you’re interested in investing in any of the networks, tokens, or coins on this list, it’s important to do it correctly through a trusted platform, exchange or service. Many experts suggest opting for platforms like Kraken, Kucoin, or Immediate Edge to invest safely and sensibly.
Aurora is also doing something similar, and you might be curious why. The main reason is that developers are hesitant to establish projects for new blockchains. They wish to work on a project for a well-known blockchain.
The idea is that you can simply move your code from one EVM blockchain to another if you construct a decentralised application for it. To give you an example, Aave is a decentralised application on Ethereum, but Geist is a decentralised application on the Fantom network that is nearly identical. The Compound is another Ethereum dApp, and Cream is a similar dApp on the Binance smart chain.
MATIC is used in the Polygon network. The Binance smart chain uses BnB. The Fantom network also uses FTM. Aurora is unique because it uses Ethereum as its native currency. In this manner, they may sustain their network with their own coin with distinct tokenomics. Aurora recognises that they do not require a currency and, in a bold move, elected not to utilise the NEAR coin.
Aurora’s average block time is roughly 1.03 seconds, with a finality of 2 seconds, which is quite quick. A cent or less is the normal transaction fee. Using the NEAR consensus technique, they can readily handle hundreds of transactions per second.
Aurora, by the way, is not its own blockchain. It’s nothing more than a smart contract based on the NEAR protocol. This implies that it inherits the NEAR network’s block time and consensus method, which is incredible. There has never been another effort by a network to achieve something like this.
To put it another way, the layer two scaling solution is essentially a smart contract on the main chain, with Aurora not validating blocks off-chain, unlike many other side chains. All validation takes place on the Ethereum and NEAR blockchains. For security, this implies that users only have to trust the Ethereum and NEAR blockchain’s consensus mechanisms, making Aurora and its bridge completely trustless and decentralised.
Aurora is built on top of the NEAR protocol, yet it gives Ethereum developers a familiar interface. Essentially, developers can use solidity contracts written for Ethereum and deploy them on Aurora, then benefit from NEAR’s low cost and quick confirmation times.
Aurora’s development team benefits greatly from the fact that it is a smart contract. They don’t have to worry about consensus, validators, storage, or network management. It means companies can iterate quickly and launch new features at lightning speed.
The acronym DAO refers to a decentralised autonomous organisation. A DAO is a decentralised autonomous organisation (DAO) in which token holders make decisions rather than elected CEOs. Holders of tokens can submit and vote on new ideas or improvements.
Aurora DAO is the primary means through which Aurora will develop and progress, and anybody who owns or holds the Aurora token will be able to participate in the decentralised governance process. The nicest part of a DAO is that the surrounding community and genuine investors get to vote on major changes, so you can be certain that they will work to make the network the best it can be in the long run.
One of the largest problems in cryptocurrency is interoperability, or the ability to connect a bunch of blockchains. Aurora has its rainbow bridge, which is what they’re calling the tool you can use to transfer your tokens to and from the Aurora and NEAR network.
You can easily move your funds from the Ethereum blockchain to the NEAR blockchain or Aurora whenever you want without trusting a third party because the transfer is all done with code.
Instead of MetaMask, NEAR technically uses your entire browser as a wallet. You don’t have to download anything. They also have human-readable addresses instead of a bunch of pseudorandom numbers that make up your wallet address.