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What is NEAR? The network and token explained

NEAR is its own blockchain and token, with a sharded design for parallel processing. It was co-founded by Illia Polosukhin and Alexander Skidanov, and mainnet opened in 2020.

Vahe HakobyanEditor-in-chief Updated Oct 6, 20263 min readFact-checked

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What is NEAR used for?How does NEAR work?What is NEAR's history and legal record?How is NEAR different from Ethereum?FAQ

Short answer

NEAR is a standalone blockchain and the token that pays its fees and can be staked to help secure the network.

The project describes the network as built for artificial intelligence.

What is NEAR used for?

NEAR is a standalone blockchain, not a token issued on another network. The NEAR token pays transaction fees and can be staked to help secure the chain. The project says it is building for AI use.

Paying network fees in NEAR
Staking NEAR to help secure the chain
Running apps and sending transactions
Storing data on-chain

How does NEAR work?

NEAR is a sharded blockchain. Its architecture splits work across parts called shards, and each shard processes its own transactions at the same time. The network coordinates the shards so accounts and balances stay in sync. Sharding adds coordination complexity, which the project says its design handles.

What is NEAR's history and legal record?

NEAR Protocol was co-founded by Illia Polosukhin and Alexander Skidanov. Its mainnet opened in 2020. In June 2023, the SEC named NEAR as an alleged unregistered security in its Coinbase lawsuit. Such cases can end through dismissal or settlement, but no court has ruled that NEAR is a security.

How is NEAR different from Ethereum?

Ethereum and NEAR both run smart contracts, but they scale differently. Ethereum uses one main chain plus layer 2 networks, while NEAR scales on its base layer with shards. Solana is another base-layer network with its own design. NEAR also uses readable account names, while Ethereum accounts are hexadecimal addresses.

NEAR and Ethereum compared
NEAR	Ethereum
Marketed for AI (project's own description)	General-purpose
Shards on base layer	Main chain plus layer 2
Readable names	Hexadecimal addresses
Pays fees and is staked	Ether pays fees and is staked

Frequently asked questions

Fees are paid in NEAR, but some apps sponsor them, so you may not need to hold the token.

Wallets built for NEAR and hardware wallets that list it can hold it. Check the project's wallet directory before sending.

Not directly. Ethereum apps use the Ethereum Virtual Machine; NEAR uses its own runtime. Tools can help port code.

It supports development and the ecosystem. It funds projects and guides protocol work.

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Written byVahe HakobyanVahe Hakobyan is the editor-in-chief of World-Crypt. He covers bitcoin, markets and regulation, and leads the newsroom that fact-checks every story before it goes live.