Key takeaways
- NEAR Protocol is a blockchain that splits its work across many parts, called shards, so it can process many transactions quickly and cheaply.
- One of NEAR's founders, Illia Polosukhin, co-wrote the paper that introduced transformer models, the basis of modern AI. NEAR now puts a strong focus on AI.
- NEAR is the network's cryptocurrency. It is used to pay transaction fees, which are burned, and for staking to secure the network.
- On Myntkaup you can buy, sell and hold NEAR.
Contents
NEAR Protocol 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., 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, like EthereumEthereumAn open blockchain that can run applications and smart contracts, with its own cryptocurrency called ether (ETH). and SolanaSolana (SOL)A blockchain designed for fast, low-cost transactions. SOL is the network's cryptocurrency, used for network fees and staking.. It is designed to be fast, cheap and easy to use, and it splits its work across many parts to cope with growing demand. NEAR is the network's cryptocurrency.
In recent years, NEAR has put a strong focus on decentralised AIDecentralised AIAI that is developed, run or sold on open networks rather than controlled by a few companies. Bittensor and NEAR are examples. and on letting people use many blockchains through a single account. This article explains how the network works, what NEAR is used for and what the risks are.
Who created NEAR?
Illia Polosukhin and Alexander Skidanov founded NEAR. They started in 2017 with an AI company that taught computers to write code, but a year later they turned to building a blockchain. Polosukhin had previously worked on AI research at Google and is one of the eight authors of the 2017 paper "Attention Is All You Need". It introduced the transformer models that most large AI models today are built on, including chatbots such as ChatGPT.
NEAR's main network went live on 22 April 2020. In October that year, validatorsValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. voted to enable transfers, and the network has been run by its community ever since. The NEAR Foundation, a non-profit in Switzerland, supports the network's growth, and the company Near One develops its core software.
How does NEAR work?
Sharding
NEAR uses a form of ShardingShardingA way to scale a blockchain by splitting the network into parts that process transactions at the same time. NEAR uses sharding. called Nightshade. The network is split into parts that process transactions at the same time, like a shop opening more checkouts. In November 2026 the network was split into ten parts, and since July 2026 it can add parts automatically when demand grows. Users see a single network, because the split happens behind the scenes.
A new block is added roughly every 0.6 seconds, and a transaction is final after about 1.2 seconds. The network 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., where validators stake NEAR for the right to confirm transactions.
Readable account names
On most blockchains, an account is a long string of numbers and letters. On NEAR, an account can have a name that is easy to remember, such as anna.near. This lowers the risk of sending to the wrong account and makes NEAR easier for new users.
Fees
Transaction feesNetwork feeA fee paid to a crypto network, not to a bank or company, for including your transaction in a block. on NEAR are usually very low. Since November 2026, all transaction fees are burnedToken burnWhen tokens or coins are permanently removed from circulation, usually by sending them to an address nobody holds the key to.. Before that, smart contract owners received 30% of the fees that users paid to use their contracts.
The NEAR token
When the network launched, one billion NEAR were created. New NEAR is added every year as a reward for validators, and in November 2026 there were about 1.31 billion NEAR. NEAR has no fixed maximum supplyMaximum supplyThe largest number of units of a cryptocurrency that can ever exist under its rules, such as 21 million for bitcoin.. In October 2025 the cap on yearly issuance was lowered from 5% to 2.5%, and burned fees offset part of it.
NEAR is used to:
- Pay transaction fees. All fees are burned and leave circulation.
- Stake. Through StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto., you can delegate NEAR to a validator and earn a share of the rewards. It takes about 29 hours to get NEAR back out. In November 2026 about 44% of all NEAR was staked.
- Pay for storage. Anyone who stores data on the chain must hold NEAR against the amount of data, one NEAR for every 100 kilobytes. It is released again when the data is deleted.
AI and many chains
User-owned AI
Since 2024, NEAR has presented itself as a blockchain for user-owned AI. The idea is that AI agents can hold assets, pay and trade on behalf of their users, without one company controlling them. The company NEAR AI, for example, offers a service where AI models run in special secure hardware, and every answer comes with a proof the user can check.
Chain Signatures and NEAR Intents
- Chain Signatures lets NEAR accounts sign transactions on other blockchains, such as bitcoin and Ethereum. Signing happens on a network of nodesNodeA computer that runs a crypto network's software, keeps a copy of the blockchain and checks that new transactions and blocks follow the rules., and no single node can sign on its own.
- NEAR Intents lets users, or AI agents, state the outcome they want, such as swapping one cryptocurrency for another. Parties called solvers compete to carry out the trade, and a smart contract on NEAR settles it. By November 2026, trading through NEAR Intents had passed 30 billion dollars in total.
Why did NEAR attract attention?
- Speed and low fees. Transactions are final in just over a second and cost little.
- Ease of use. Readable account names and connections to other chains let people use many chains without constantly switching wallets.
- Roots in AI. Few crypto projects have roots in AI research as deep as NEAR's.
What are the risks?
- Tough competition. NEAR competes with Ethereum, Solana and many other chains for developers and users. Supporters point out that with Chain Signatures and NEAR Intents, NEAR doesn't need to beat the other chains, because it can serve users on all of them.
- Dilution. New NEAR is added every year, so the share held by people who don't stake shrinks relatively. The issuance cap was halved in 2025, though, and all fees are now burned.
- Risk in apps. Apps on NEAR can have weaknesses, as on other chains. In April 2026, attackers stole about 18 million dollars from the DeFiDeFi (decentralised finance)Financial services, such as lending, saving and trading, that run on smart contracts on a blockchain instead of through a bank or other middleman. app Rhea Finance. The attack targeted the app itself, not NEAR.
- Fast-changing rules. The network's rules, for example on fees and issuance, have changed several times in a short period.
- Price swings. The price of NEAR peaked at about 20 dollars in January 2022 and has swungVolatilityHow much and how quickly the price of an asset moves up and down. a lot since.
NEAR on Myntkaup
On Myntkaup you can buy, sell and hold NEAR. Depositing and withdrawing NEAR on-chain isn't available yet, but it is planned for later. You can see the price of NEAR on the NEAR price page.
Frequently asked questions
What is the difference between NEAR Protocol and NEAR?
NEAR Protocol is the network itself, while NEAR is the cryptocurrency used on it. People often call both NEAR, though.
What is sharding?
Sharding is a way to increase a blockchain's capacity by splitting it into parts that process transactions at the same time. Read more about ShardingShardingA way to scale a blockchain by splitting the network into parts that process transactions at the same time. NEAR uses sharding. in the glossary.
Is NEAR an AI project?
NEAR is first and foremost a blockchain, but much of its development now focuses on AI. The goal is for AI agents to be able to hold assets and trade on an open network. Read also about Bittensor, another network linked to AI.
Closing thoughts
NEAR Protocol is a fast and cheap blockchain that focuses on ease of use, connections to other chains and AI. Many people value that its founders come from the front line of AI research and that the network has been under steady development since 2020.
The price of NEAR swings a lot. Learn about the risks before you buy.
