Monday, December 11, 2023
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HomeBusinessWhy NEAR Protocol is needed. Where is it used?

Why NEAR Protocol is needed. Where is it used?

First, let's briefly talk about the NEAR project itself. It is clear that it is incredibly difficult to thoroughly understand the technology of such protocols - it is no coincidence that their documentation contains hundreds of pages, but it is enough for investors to know the most basic points and key differences from competitors. At the same time, near protocol development plays an important role, as many new technologies are built on this platform.

Benefits of decentralization

Decentralization makes it possible to increase the efficiency of decision-making on the supply of a local public service.

- It is impossible to centrally manage especially large organizations because of the huge amount of information required for this and, as a result, the complexity of the decision-making process.

- Decentralization gives the right to make decisions to the leader who is closest to the problem that has arisen and, therefore, knows it best.

- Decentralization encourages initiative and allows the individual to identify with the organization. In a decentralized approach, the largest unit of the organization seems to its leader to be very small, and he can fully understand its functioning, fully control it, and feel like a part of this unit. Such an executive may be as enthusiastic in his division as an independent entrepreneur is in his entire business.

Why blockchain protocols are needed

Blockchain protocols provide a very important infrastructure that allows you to run applications that are not controlled by any centralized organization.

Financial products that are not controlled by the state and banks is a very important area. But blockchain protocols allow you to do much more.

NEAR scales using a different approach called Sharding. I have described sharding in the context of blockchains in detail here. Sharding is breadth scaling, and in the long term allows much more computation to be done at a much lower cost than is possible with protocols that scale in height, no matter how high the demands on the hardware.

Usage. Near was created for those who know almost nothing about the blockchain. For example, to create dapps, users must go through the usual registration process – “they may not even realize that they are working with the blockchain,” the developers say. Thus, they will be able to reach a wider audience.

Application owners on the Near blockchain pay for two services: storing data and executing transactions, such as transferring tokens. The cost of services depends on the complexity of transactions.

Syandita Malakar
Syandita Malakar
Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
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