NEAR Protocol is an independent BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. for smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met. and apps, designed to be fast, cheap and easy to use. NEAR is the network's cryptocurrency. Illia Polosukhin and Alexander Skidanov founded NEAR in 2018, and the main network went live in April 2020. Polosukhin is one of the authors of the paper that introduced the transformer models modern AI is built on.
How does NEAR work?
NEAR is a layer 1Layer 1The base network itself, such as Bitcoin or Ethereum, which records transactions and settles them for good on its own blockchain. that uses proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake. and ShardingShardingA way to scale a blockchain by splitting the network into parts that process transactions at the same time. NEAR uses sharding.: the network is split into parts that process transactions at the same time. A new block is added roughly every 0.6 seconds, and transactions are final in about 1.2 seconds. Accounts can have names that are easy to remember, such as anna.near.
NEAR
NEAR is used to pay transaction fees, which are all burned, for StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto. to secure the network and to pay for storing data on the chain. NEAR has no fixed maximum supply, but yearly issuance of new NEAR is capped at 2.5%.
AI
NEAR presents itself as a blockchain for decentralised AIDecentralised AIAI that is developed, run or sold on open networks rather than controlled by a few companies. Bittensor and NEAR are examples., where AI agents can hold assets and trade on behalf of their users. With NEAR Intents, users and apps can trade across blockchains.
What to keep in mind
NEAR competes with many other blockchains for developers and users, and the network's rules have changed several times in a short period. The price of NEAR swings a lot.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 4 November 2026.