Author: Fortune Samuel

Near Protocol is a Proof-of-Stake (PoS) blockchain network where developers can create decentralized applications (dApps). But how exactly does Near protocol work, and how does it differ from competitors like Solana?

This article explains everything you need to know.

What is Near Protocol (Explained)?

Near Protocol is a carbon-neutral layer-1 blockchain network. A layer-1 blockchain is an underlying blockchain that serves as a foundation network on which applications are built.

Near Protocol is referred to as carbon neutral because, unlike proof-of-work (PoW) blockchains, it does not consume large amounts of electricity to validate transactions.

Similar to centralized data storage systems, Near Protocol serves as a user-friendly base layer on which applications can be built. The network is different from centralized data storage systems, though, because it is operated and maintained by a network of computers rather than an individual or a single entity. Due to this, the applications created on Near Protocol are decentralized applications (dApps), not centralized ones.

Near Protocol aims to create seamless experiences for users and developers by providing accessibility to and interoperability with other blockchain networks. The blockchain also uses the Proof-of-Stake (PoS) consensus mechanism, which is a more climate-friendly alternative to Proof-of-Work, to ensure low transaction fees.

NEAR Token

The native cryptocurrency for Near Protocol is the NEAR token. This token allows users to pay transaction fees, pay storage fees and use applications built on the network.

Validators who stake their tokens in order to maintain the security and validity of the network earn rewards in the form of extra tokens. On the other hand, validators who become inactive or dishonest are being penalized. The penalty is known as slashing, and it involves the validators losing their potential rewards.

The blockchain increases its token supply by 5% every year, and most of these newly released tokens are used to reward validators. Still, on rewards, smart contract developers who build decentralized applications (dApps) on the blockchain receive 30% of all transaction fees throughout the network.

70% of all transaction and storage fees are burned or removed from circulation. This means that the number of NEAR tokens in circulation is gradually reduced, leading to an increase in the token’s value over time.

Who is the Founder of Near Protocol?

Near Protocol was founded by Alex Skidanov and Illia Polosukhin, who both worked in data-related companies.

Alex Skidanov formerly worked as a developer for Microsoft and later as the director of engineering at MemSQL, a database company. 

Illia Polosukhin, on the other hand, used to work at Google. There, he handled Artificial Intelligence (AI) capabilities and search engine products.

Since its launch in 2020, Near Protocol has raised more than $20 million as funds because early-stage investors bought about 35% of the initial supply of one billion NEAR tokens.

How Does Near Protocol Work?

These three features, Nightshade, Rainbow Bridge, and Aurora, show how Near Protocol works. They are explained below.

Nightshade

Near Protocol solves the blockchain trilemma of being scalable, decentralized, and secure through a process called sharding.

Sharding is a concept that involves splitting the database on the network into smaller parts, known as shards. This process allows each participating computer, known as a node, to handle only a fraction of the network’s transactions. 

The goal of sharding is to ensure a smooth and more efficient running of the blockchain with increased speed and performance. Each node stores and retrieves only a small part of the network’s data instead of the whole blockchain. This, in turn, enables more transactions to be processed per second and minimizes transaction fees.

Also, sharding allows for a more balanced distribution of data based on the computational resources available on the network. Each shard can be processed at the same time as other shards on the network.

Nightshade is a sharding technology built on the Near Protocol platform. It ensures that the network maintains a single data chain. 

How? Each node is allowed to process small sections of the network’s data. After processing, the information is added to the single chain. This way, high security of the data on the network is maintained.

With Nightshade, the number of shards on Near Protocol is adjusted regularly based on user demand. Nightshade can create an unlimited number of shards and merge them at any time based on the computational needs of the network. This helps to reduce the average cost of processing transactions and increase efficiency.

Rainbow Bridge

Rainbow Bridge is a platform application that allows users to seamlessly move tokens from the Ethereum blockchain to Near Protocol and vice versa.

Any user who wishes to transfer tokens from Ethereum to Near Protocol needs to first deposit tokens in their Ethereum wallet. When these Ethereum tokens are locked, new tokens representing the original ones will then be created on the Near Protocol platform.

The process explained above is easily reversible. As a result, users can always retrieve their Ethereum tokens whenever they want.

Aurora

Aurora is a layer-2 scaling solution built on Near Protocol using Ethereum’s coding technology, Ethereum Virtual Machine (EVM). This scaling solution allows developers to launch Ethereum decentralized applications (dApps) on the Near Protocol network.

Aurora was created using a cross-chain bridge, which makes the network fully interoperable with Ethereum and its wallets. Hence, developers on Near Protocol can easily link their Ethereum assets.

Aurora creates a familiar environment on Near Protocol for Ethereum developers to work on decentralized applications at a lower cost. This feature also benefits users because it allows them to enjoy fast transactions and low transaction fees while using familiar Ethereum tools.

Near Protocol Vs Solana (A Brief Comparison)

Solana network is a blockchain that is similar to Near Protocol. Some of the similarities as well as differences that exist between Near Protocol and Solana are briefly stated below.

Similarities Between Near Protocol and Solana

1. Both networks process transactions at a great speed and with low costs.
2. Near Protocol and Solana both aim to solve the blockchain trilemma of maintaining security, decentralization, and scalability.
3. Both blockchains use the Proof-of-Stake (PoS) consensus mechanism to ensure security.
4. The tokens of both networks, NEAR and SOL, grant validators governance tokens which gives them the right to have a say when changes are about to be made on their networks.
5. Both Near Protocol and Solana were launched in 2020.
6. Decentralized applications (dApps) can be built at a minimized cost on both networks.

Differences Between Near Protocol and Solana

1. Solana has more users than Near Protocol.
2. More decentralized applications have been built on the Solana blockchain than on Near Protocol.
3. Solana has more active nodes than Near Protocol.
4. In terms of market capitalization, the Solana blockchain appears to be more established than the Near Protocol. The Solana coin (SOL) is currently the fourth largest cryptocurrency, while the NEAR token is the 18th largest cryptocurrency by market capitalization.
5. Unlike Near Protocol, the Solana network has experienced many notable outages in service.

So, which blockchain is better? Near Protocol or Solana? 

Users may have to consider the similarities and differences between these two blockchains and then decide for themselves which one will work better for them.

Is Near Protocol a Good Investment?

Users who see investing in Near Protocol as a good idea may do so because of the network’s many user-friendly features.

An example is the sharding technology, Nightshade, which secures the network and ensures its smooth running. 

Additionally, users may find the Rainbow Bridge application very useful in transferring their tokens between Near Protocol and Ethereum blockchains.

Again, developers may decide to create and launch decentralized applications on Near Protocol.

Investors may decide to buy NEAR tokens and stake them in order to earn rewards in the form of extra tokens. They may also stake their tokens in order to earn governance tokens, which will give them the opportunity to have a say when decisions are about to be made on the blockchain.

As a potential investor, it is important to review the benefits and risks involved before investing in NEAR.

Summary

In this article, so much was said about Near Protocol. Here are some of the main points.

Near Protocol is a layer-1 blockchain network on which developers can create and launch decentralized applications.

The network was launched in 2020 and founded by Alex Skidanov and Illia Polosukhin.

The native token for Near Protocol is the NEAR token with which users can pay transaction fees and even earn rewards through staking.

Through the process of sharding, each participating node on Near Protocol is able to store and retrieve only a small part of the network’s data instead of the whole blockchain.

Rainbow Bridge and Aurora are scaling solutions that ensure interoperability between Ethereum and Near Protocol.

Users may find themselves comparing Near Protocol and Solana due to some of the similarities they have. However, they have some differences, as explained in this article.

Finally, users who want to invest in Near Protocol need to review the pros and cons associated with it before making a decision.

BONK is a meme-inspired cryptocurrency token that runs on the Solana blockchain. It also has a unique feature. 

In this article, you will learn about the token’s unique feature, the inspiration behind the name, ‘BONK’, and why it is so popular.

To get started, what is BONK?

What is BONK Crypto?

BONK is a cryptocurrency created on the Solana network. It can be purchased and sold on crypto exchanges like Binance and Coinbase that support Solana-based tokens.

BONK is a memecoin. What is a memecoin? A memecoin is a cryptocurrency named after a character, such as a human, animal, or artwork.

Memecoins are not designed for specific use cases. They are usually inspired by internet memes and jokes. Some memecoins, though, become popular after they have been launched. When this happens, an ecosystem may be built around the digital asset to ensure that it runs smoothly.

Memecoins are often built to run on blockchain networks. They are usually identified with their characters’ animated images. Many tokens fall into this category, and BONK is one of them.

BONK, which is Solana’s most popular memecoin, is a dog-themed token. It was inspired by the original ‘BONK’ memes where a dog character known as Cheems was being bonked on the head.

Similar to Dogecoin, Shiba Inu, and Dogwifhat, BONK features a cute dog as its logo. However, it has a unique feature that makes it stand out among other memecoins.

BONK’s Tokenomics: A Key Feature

BONK’s tokenomics, or token economics, refers to its supply and burning mechanism.

BONK’s Total Supply

The total supply of BONK is pegged at 100 trillion tokens. Currently, more than 60% of the maximum supply has been issued and is in circulation.

This limited supply is an important unique feature because it aims at increasing the value of the tokens.

BONK’s Burning Mechanism

The burning mechanism is another aspect of BONK’s key feature.

This is how it works: Each time a transaction involving BONK is made on the blockchain, a certain percentage of the token is permanently removed from circulation.

This approach gradually reduces the token’s total supply of 100 trillion and the number of tokens in circulation. It also encourages BONK users to hold their tokens rather than sell them because it serves as a means of rewarding users who buy and hold their tokens.

Ultimately, the burning mechanism aims at increasing the value of the tokens and strengthening their worth over time. This is because the lesser the supply, the higher the value of a token.

Who Created the BONK Coin?

BONK was created by a team consisting of 20 Solana developers and builders. It was launched with a massive airdrop on 25th December, 2022 on the Solana blockchain. 

The idea behind BONK’s launch was to create a fun memecoin that will be used across all the decentralized applications built on the Solana network. During the launch, 50% of the total supply of 100 trillion coins were randomly distributed to Solana users who contributed to the growth of the network. 

This distribution was done anonymously and without prior announcement or marketing. Recipients of the free distribution included users who were developers, Non-Fungible Token (NFT) holders, and active community members. 

Bonk’s Multiple Interpretations

The name Bonk has many interpretations in different fields. Some of these fields include gaming, computer science, sports, and others. 

The word “bonk” is also used as slang in casual settings.

Video Gaming

In video gaming, Bonk implies a moment of loss and defeat, one that every gamer hates to experience.

Computer Science

In computer science, Bonk is used when a character with malicious intentions overwhelms a server with requests, causing it to crash.

Sports

In cycling, bonking refers to a state of extreme tiredness caused by low glycogen levels in the body.

Just like in computer science, bonking in sports describes a situation where the body is unable to perform as much as it used to due to low energy levels.

In the cryptocurrency world, however, these interpretations do not fit. This is because cryptocurrencies and their networks are designed to be more resilient and withstand attacks. 

Components of the BONK Ecosystem

The BONK ecosystem refers to the combination of all the platforms and services that contribute to the functionality and smooth running of the BONK token. 

The BONK ecosystem is classified into two broad components which work together to enhance the value of the token. They also provide the users with a wide range of options for utilizing their BONK tokens.

The two components are BonkSwap and BonkVault.

BonkSwap: Trading Platform

BonkSwap is a decentralized exchange (DEX) platform within the BONK ecosystem. This platform allows BONK users to trade their tokens swiftly and interact with other cryptocurrencies.

BonkSwap enhances the utility of BONK because it makes it possible for users to smoothly trade their BONK tokens for other cryptocurrencies within the ecosystem.

BonkVault: Secure Storage

BonkVault is a wallet within the BONK ecosystem. This wallet allows BONK users to store their digital assets and maintain full control over their private keys.

BonkVault is an important component of the BONK ecosystem because it addresses a valid concern: security. Crypto users are generally concerned about the security of their digital assets and rightly so.

BonkVault is a non-custodial wallet that ensures that BONK users can securely store their tokens and possess complete control over their private keys.

The security concerns addressed by BonkVault promote the utility of the token and make it more attractive to crypto investors.

Why is BONK so Popular?

Since its launch, the BONK token has gained visibility and popularity in the cryptocurrency market. Currently, it is the sixth largest memecoin and 63rd largest cryptocurrency by market capitalization.

Shortly after the BONK token’s launch in December 2022, the value of Solana’s native cryptocurrency, SOL, rose from a little over $8 to $13. This rise may be a result of the recognition gained by BONK on the Solana blockchain. 

The BONK token owes its popularity to a variety of factors, as explained below.

• Clever Marketing Strategy

The BONK token’s journey to great recognition in the cryptocurrency market began with its viral marketing campaign on TikTok. Over time, BONK has leveraged viral marketing to build awareness and visibility.

This marketing strategy is clever because memes and humor on social media have been found to be very effective in drawing people’s attention to the crypto space. For new and less-popular cryptocurrency assets, social media marketing has proven to be effective in driving traffic in the crypto market and creating an engaging audience.

• The Solana Platform

Another reason behind BONK’s popularity may be related to its existence on the Solana platform. Solana is a well-known blockchain in the cryptocurrency space. This may greatly influence the popularity that the memecoin currently enjoys.

• Listing on Popular Centralized Exchanges

BONK is listed on well-known centralized exchanges (CEX) such as Binance and Coinbase, which may be another factor contributing to its popularity.

Is BONK a Good Crypto Investment?

Compared to other cryptocurrencies, BONK’s market value is relatively low. This may signal possible future growth.

Another pointer is that a significant percentage of the total supply of BONK has been burned. This may indicate the ecosystem’s level of sustainability. 

The token’s rise from a free airdrop to the most popular memecoin on the Solana blockchain may also serve as a basis for reasoning that it may continue to trend for an extended period.

However, it accurately explains how unpredictable the cryptocurrency space can be. High volatility, which is one of the core features of cryptocurrency, can really affect investments in BONK. The value of the BONK token can significantly change at any time.

Investment in BONK requires a deep understanding of its potential pros and cons. For example, the pattern of its growth shows that it relies strongly on viral marketing.

Again, new memecoins designed in the future may become more popular, causing the hype around BONK to fade. When this happens, the value of the token may drop significantly.

Recognizing that cryptocurrency investment is associated with high risks should help you, as an investor or trader, use good judgment while making an investment decision. 

Investment decisions should not be made hastily. Rather, they should be influenced by enough knowledge and adequate research.

Summary

BONK is a meme-inspired cryptocurrency token created on the Solana blockchain. It has a maximum supply of 100 trillion, and more than 60% of this limited supply has been burned.

BONK’s burning mechanism gradually reduces the total number of tokens in circulation and encourages users to hold rather than sell their assets.

As with other cryptocurrencies, BONK is a highly unpredictable token. Before investing in it, you should do diligent research and evaluate the risks involved.

With artificial intelligence (AI) dominating the headlines in recent times, some crypto investors may wonder how it affects the crypto space. If you are one, this article is for you. 

Fetch.ai is a blockchain-based platform that uses artificial intelligence and machine learning to accomplish different tasks for its users. In this article, you will learn all about this blockchain and its token (FET). At the end of your reading, you will also be better informed as to whether Fetch.ai is a good crypto investment or not.

Brief History of Fetch.ai

Introduced in 2017, Fetch.ai was founded by a team based in the UK, consisting of Humayun Sheikh, Toby Simpson and Thomas Hain. Humayun Sheikh is Fetch.ai’s CEO. He has a history in artificial intelligence as he founded a machine learning/artificial intelligence company called itzMe. 

The Fetch.ai network has received financial support over the years through token sales. For instance, in 2019, the platform raised $6 million in funding when over 3000 crypto investors bought the FET token through an Initial Exchange Offering (IEO) hosted by Binance. 

Similar token sales, partnerships, and collaborations hosted by different companies after 2019 have helped Fetch.ai raise requisite funding.

Fetch.ai Simply Explained

Fetch.ai is a blockchain platform that performs everyday tasks, such as booking a flight, for its users using artificial intelligence (AI). In the crypto space, cryptocurrency investors can use Fetch.ai to easily identify a token trading at a lower price.

The Fetch.ai platform consists of four layers, namely, the AI Agent, the AI Engine, the Agent-verse and the Fetch Network.

• AI Agents

Fetch.ai functions with micro-agents called AI Agents. AI Agents are computer programs that interact with other agents on a decentralized platform.

On the Fetch.ai platform, AI Agents are simple computer programs that represent users on the blockchain, either as a person or as an organization, and act on their behalf by accomplishing automated tasks for them. An AI Agent can be likened to a digital personal assistant that understands you well and makes decisions for you without stress.

These agents are said to be simple computer programs because they are relatively easy to build without deep knowledge of computer coding. Each AI Agent can also be accessed by another AI Agent on the network.

AI Agents have the ability to make predictions and learn from previous mistakes. This ability enhances the high performance of the network. Some of the crypto-related tasks executed by AI Agents include automated trading transactions, market trend analysis and risk assessments. They may also provide trading advice based on the state of the market.

• AI Engine

AI Engine powers Fetch.ai’s operations. It uses Large Language Models (LLM), a machine learning technology that processes large amounts of text and transforms it into actionable tasks. These tasks are then performed by the most suitable AI agent among the agents and users on the blockchain. 

AI Agents are registered on the Almanac contract, a smart contract present on the Fetch.ai blockchain. Once registered, AI Engine can then access the AI Agents.

The work of AI Engine is to analyze and understand the inputs of the users and connect them to the most fitting AI Agent to execute the task. AI Engine achieves this by assessing previous interactions to understand users’ preferences. 

The chat interface users utilize to provide their inputs is called DeltaV. When the AI Engine receives the input, it processes them and links them to the most appropriate agent to perform the task. If unclear, AI Engine may request reports from users to ensure a better experience next time.

• Agent-verse

Agent-verse is a Software as a Service (SaaS) used to develop AI Agent solutions. It is a cloud-based platform that hosts AI Agents and their services. The platform allows users to access, develop and edit their own kind of AI Agents.

Available in the Agent-verse are templates that users can easily use to develop agents. Due to the fact that AI Agents can be developed without deep knowledge of computer coding, the templates present in the Agent-verse can be used to create customized agents that would perform a wide range of tasks on the Fetch.ai network.

In addition to developing AI Agents, the Agent-verse allows users to search, discover, and verify agents registered on the Almanac contract.

• Fetch.ai Network

The Fetch.ai network is the backbone of the whole platform. It supports the other layers of the blockchain. The Fetch.ai network includes different elements that ensure that the platform runs smoothly and efficiently.

Such elements include the Almanac contract and the Fetch ledger.

• Almanac Contract

The Almanac contract is a smart contract that runs on the Fetch.ai blockchain. It can be likened to a library because it holds all the information about the AI Agents. 

The Almanac contract plays an important role in maintaining the smooth running of the platform. All AI agents on the Fetch.ai platform are registered on the contract. This makes it easy to retrieve information about any agent within the network.

Information held by the Almanac contract is updated regularly because the AI Agents are required to re-register their information with the contract after a certain length of time. This ensures accuracy of information at all times.

Fetch Ledger

Fetch Ledger is a secure ledger technology that keeps track of all the transactions that take place within the Fetch.ai blockchain. Fetch Ledger employs a Proof-of-Stake consensus mechanism where validators are allowed to verify transactions and create new blocks on the blockchain.

As with the Almanac contract, the Fetch ledger is an important element because it ensures that all transactions recorded on the network are transparent and not tampered with.

FET Token and its Use Cases 

FET is the native token of Fetch.ai. So, while Fetch.ai is a blockchain platform, FET is a cryptocurrency. 

Just like bitcoin, the FET token has a fixed supply. The total number of FET tokens that will ever exist is 1.15 billion. The fixed supply of the FET token makes it scarce and protects it from inflation.

These tokens can be bought from crypto exchanges. A good example of a crypto exchange where users can buy FET is Coinbase.

The FET token was initially released as an ERC-20 token on the Ethereum network. This was done for two reasons, namely, to create awareness about the token and to raise funds for Fetch.ai. 

Presently, the FET token runs on its own blockchain, Fetch.ai, although some FET tokens remain on the Ethereum network. Using the Fetch wallet, crypto investors can buy, hold and use their FET tokens.

The FET token’s use cases include the following:

• Transaction and Service Fees

The FET token is the only medium of exchange within the Fetch.ai platform. Crypto users who make transactions and perform automated tasks within the platform pay for the services using their FET tokens. 

Also, users who generate information or create customized AI Agents, using the Fetch.ai network, pay fees with their FET tokens.

• Staking and Network Integrity

Fetch.ai adopted a consensus mechanism known as Proof-of-Stake (Pos) to allow validators stake their FET tokens in order to maintain the integrity of the network. The blockchain also supports a process known as delegation for users who are not validators because they do not have enough FET token holdings. These individuals are allowed to delegate their staking to validators and earn rewards based on the percentage of their tokens.

• Incentives

As a user, you may stake your FET to earn rewards, which may be up to 10% interest in a year. Developers also earn extra FET tokens when they create Decentralized Applications (dApps) that contribute to the network’s growth.

• Governance

Another benefit users may get from staking their FET tokens is obtaining a governance token. A governance token affords crypto users the opportunity or right to have a say in future decisions and changes to be made on the platform.

How to Use the Fetch Wallet

The Fetch wallet is designed to hold native FET tokens. You can use the Fetch wallet to either make deposits into your account or send tokens to another account.

Deposit Tokens

To make a deposit into your account, follow these steps:

1. Enter the wallet and input your credentials.
2. Fill in your account address as the destination address to which your funds should go.
3. Once the tokens have been sent, it will be reflected in your balance.

Send Tokens

You can send FET tokens to another account by following these steps:

1. Enter the wallet and input your credentials.
2. Fill in the recipient’s address.
3. Input the number of tokens you want to send.
4. Choose between Low, Average and High, the transaction fee you want to pay while bearing in mind that the more the transaction fee, the faster your transaction will be processed.
5. Select Send.
6. Review the transaction details. If the details are correct, click on Approve.

Is Fetch.ai a Good Crypto Investment?

The FET token is a cryptocurrency, and just like every other cryptocurrency, it is a highly volatile asset. Due to this, it is very important to do your own research before investing. 

Thorough research will help you understand the risks and rewards associated with Fetch.ai investment. It will also help you make informed decisions regarding your investment goals because you will be able to decide clearly whether to trade or stake your tokens.

Careful research will help you answer questions regarding when to buy, how much to buy at a time, and when to sell. This will ensure that your decisions are based not on hearsay but on real facts.

So, is Fetch.ai a good crypto investment? You decide!