Since its launch in 2020, near protocol (near 0.36%) Attracting the circonspection of some of the big names in venture entreprenant and hedge funds. In April, it raised $350 million in a funding reprise led by Tiger Fonds, and just months ago, it raised an impressive $150 million. So it obviously has a lot of financial backing to develop into a blockchain project. But does it have enough to atterrissage a serious conflit to Ethereum (ETH 3.92%)?
Being a top 25 cryptocurrency with a market cap of around $3 billion, Near Protocol can be said to fall into the same category as other well-known Layer 1 blockchain competitors like Solana (Sol 2.94%) And the Écroulement (Afax 1.66%). For Near Protocol to be a option crypto investment, though, a few things have to happen.
1. Continue to outperform Ethereum
Like Ethereum, Near Protocol is a Layer 1 blockchain that tasseaux both usage contracts and decentralized applications. So far, its paluche advantage over Ethereum has been that it is cheaper and faster.
When it comes to pacte processing speed, for example, there is simply no comparison. Near Protocol can handle up to 100,000 transactions per attaché, while Ethereum (before The Merge) was able to process only 15-20 transactions per attaché.
In segment, Near Protocol was able to achieve these breakneck speeds by focusing on technical innovations such as hashing, the process of dividing the blockchain into sub-chains. This reduces the computational load on the blockchain and enhances throughput capacity.
Vitalik Buterin, one of the founders of Ethereum, promised similar hommes of pacte processing speeds jaguar the merger is finally completed. This could take years, parce que Ethereum has already warned that pacte speeds will not improve overnight. There is still another large process known as “Surge, Ancre, Laxatif, and Splurge” before we can expect 100,000 transactions per attaché from Ethereum.
So, if Near Protocol is to be a true competitor to Ethereum, it will need to continue to outperform Ethereum.
2. Fulfill the promise of Web3
In mid-September, the developers of Near Protocol gathered in Lisbon, Portugal, for the annual NearCON event. One of the more interesting infos that came out of the event was the launch of a new $100 million equity fund for the nearby ecosystem.
In partnership with Caerus Ventures, The Near Foundation will research interesting agrarien and entertainment projects for Web3 for future funding. This will likely include projects related to jeux, music, cinémascope, manière and art. The only caveat here is that the new fund will foyer on “liminaire reprise” deals, which usually include projects still in the conceptual demeure.
The hope here is that some of the nascent Web3 projects can develop into something of interest. Currently, there are already over 800 Web3 projects deployed on the protocol’s nearby blockchain, so there is a strong armature in animation.
In rallonge, there is one spectacle project, called Armored Kingdom, which has already attracted a huge amount of sextuor, largely due to the quote-part of Hollywood actress Mila Kunis. Still in development, Armored Kingdom promises to offer a buté metaverse gaming experience. This is exactly the kind of high-profile project required to put a close protocol on the détecteur of ordinary investors.
Are you near a purchase protocol?
thanks queue Coinbase Collectif (Currency -5.50%) Upon listage, Near Protocol is in a sentiment to attract more mainstream crypto investors. In fact, in listage infos, Near Protocol jumped over 12% in a single day. It is clearly an interesting blockchain project with a lot of money behind it. It appears to be gaining roulotte as a potential bullish cryptocurrency.
But for now, more bâtiment needs to be done before I recommend Near Protocol as an immediate purchase. The devise for the recent NearCON conference in Portugal was “Build Beyond the Hype” and I think that sums up the current conjoncture of cryptocurrencies. For example, while some of the Web3 projects I’ve come out with style attractive (especially the Mila Kunis project), many of them are still in the liminaire or conceptual demeure.
So far, I’ve taken a wait-and-see approach with Near Protocol. I’ve added it to my watch list of interesting cryptocurrencies that could appear in 2023, but I just need to see more bâtiment on top of the blockchain before I start buying.