Key Milestones in the NEAR Ecosystem for 2023

The NEAR Ecosystem, driven by strategic partnerships, community-led initiatives, and cutting-edge technological advancements, has achieved significant milestones in 2023, aligning with its ambitious vision of reaching a billion users.

Central to these advancements are the launch of NEAR Horizon, the unveiling of the Blockchain Operating System (BOS), and the inaugural elections of the NEAR Digital Collective (NDC) within the ecosystem. These initiatives are key to improving the experience for both users and developers, aligning with NEAR’s goal of becoming a global blockchain operating system.

In this article, we’ll delve deeper into these milestones, examining their impact on the ecosystem. We’ll also discuss the collaborative efforts behind them, providing a clearer picture of NEAR’s progressive growth trajectory. 

Let’s begin.

What Is the NEAR Protocol?

The NEAR Protocol is a platform designed for decentralized applications (dApps), aiming to make their development and use more straightforward on the web. It operates as a Layer-1 blockchain, much like Ethereum, providing a fundamental base for network transactions and smart contract execution.

Built on a new public, sharded blockchain, NEAR stands out with its user-friendly interface, which eases the interaction between users and dApps. A primary goal of NEAR is to break down the barriers that have hindered mainstream blockchain adoption in the past. By making the creation and use of decentralized applications simpler, NEAR aspires to bring the advantages of blockchain technology to a broader audience.

Understanding the NEAR Ecosystem 

The NEAR Ecosystem encompasses a dynamic network of participants, including developers, users, validators, and contributors, all engaged in the growth and development of the NEAR Protocol and its associated decentralized applications (dApps). It’s a collaborative and interconnected environment where innovation, governance, and community-driven initiatives converge to advance the adoption and evolution of blockchain technology, particularly within the NEAR blockchain. 

What Makes the NEAR Protocol Stand Out?

NEAR Protocol stands out with its sharding technology, which enables a high throughput of up to 100,000 transactions per second, thanks to its Nightshade algorithm. By using commodity servers instead of expensive enterprise hardware, it’s more accessible to users and developers. 

The protocol also shines in user-friendliness, with the NEAR Wallet simplifying blockchain interactions. It also adopts a more energy-efficient Proof of Stake consensus model, moving away from the traditional energy-intensive Proof of Work model. 

Moreover, community governance is a key feature in NEAR, allowing token holders to participate in network decisions, which fosters a sense of decentralization. These features blend together to highlight NEAR Protocol’s unique approach to blockchain technology.

Recent Advancements In NEAR Protocol

NEAR Protocol is dedicated to fostering an ecosystem favorable for both users and developers, achieved through continuous technological innovations. Recent enhancements include upgrading its core infrastructure, advancing sharding technology for better scalability, and transitioning to an energy-efficient Proof of Stake consensus mechanism.

In addition to these advancements, three notable developments stand out: the launch of NEAR Horizon, the introduction of the Blockchain Operating System (BOS), and the inaugural elections of the NEAR Digital Collective (NDC). In the following sections, we’ll explore these developments further.

The Blockchain Operating System (BOS) Launch

In March 2023, Near Protocol launched the Blockchain Operating System (BOS), an industry first, to help users and developers transition from the traditional web (web2) to a decentralized or open web (web3) more easily.

The Blockchain Operating System (BOS) is an open-source operating system designed to simplify the building, deployment, and access of decentralized front-ends across any blockchain​​. It aims to remove the complexity of Web3 development by allowing coding in familiar languages and fostering easy discoverability of apps​​.

What Are The 3 Pillars Of BOS?

The Blockchain Operating System (BOS) is encapsulated in three core pillars: Gateways, Components, and Blockchains. These pillars work in unison to create a seamless environment for decentralized applications and their interaction with various blockchains.

1. Gateways

Gateways bridge the accessibility gap, making decentralized frontends, which are run locally, available to a broader audience. Gateways embody a specially engineered virtual machine that is tasked with loading and running frontends for protocols that are developed on platforms like Ethereum, L2s, and other Layer 1 platforms such as NEAR. 

The pivotal aspect here is that the code responsible for these frontends is securely stored on the NEAR blockchain, establishing a reliable foundation for decentralized frontends.

2. Components

Components emerge as the frontends for app-layer, on-chain protocols, showcasing examples like Uniswap and Aave. These Components are not just static; developers have the liberty to scrutinize the code for these apps via a gateway, similar to the ease of viewing a smart contract on Etherscan. The dynamic nature of Components shines through when developers fork these apps, deploy their iterations, or even create a blend of components, fostering a culture of innovation and customization.

3. Blockchains

The synergy between Components and Blockchains is a notable one. Components are empowered to call functions across any blockchain, promoting interoperability. Currently, the support extends to all EVM chains/L2s and NEAR. The advantage doesn’t end here; the source code for the frontends (apps) finds its residence on NEAR owing to its efficient and cost-effective storage solutions for HTML/CSS/JS, thereby ensuring that the digital assets are securely and economically stored.

Streamlining Front Ends with BOS

The Blockchain Operating System (BOS) simplifies the transition to web3 by introducing adaptable frontends, enabling interaction with any web2 or web3 backend and wallet. This foresight paves the way for seamless cross-chain interactions in the future.

By exploring alpha.near.org, users get a glimpse of BOS’s frontend interface, which allows for the creation of personalized front-ends compatible with chosen blockchains. The platform showcases components as compact solutions, offering a selection of built-in elements to enhance the front-end experience. Through this, NEAR’s BOS facilitates a smooth entry into a myriad of web3 opportunities within the ecosystem.

Importance of BOS Adoption

For the widespread adoption of blockchain, having a supportive environment for both new and existing developers is crucial. This is where the Blockchain Operating System (BOS) comes in, making it easier for developers to create reliable projects and decentralized apps (dApps). By improving infrastructure accessibility, BOS helps in extending the blockchain’s reach, ensuring that more people have control over their assets, data, and governance mechanisms in a more user-centric ecosystem.

The NEAR Horizon Launch

On the 26th of April, at the Consensus event, the NEAR Foundation announced the launch of NEAR Horizon, a Web3 accelerator program. Built on the Blockchain Operating System (BOS), Horizon hosts a unique marketplace. Here, Web3 startups can find the support they need to develop projects on Near and other cross-chain platforms.

What is NEAR Horizon?

NEAR Horizon serves as an innovative early-stage accelerator, transforming the way founders and builders access support in the Web3 realm. The NEAR Protocol transitioned from AwesomeNEAR to NEAR Horizon, making it the primary platform for exploring fresh and emerging projects within the NEAR ecosystem.

Founders can establish a profile for their startups on the NEAR Horizon platform. Post profile setup, they can leverage the platform to:

• Engage with ecosystem experts,

• Safely trial their product,

• Connect with early adopters,

• Enroll in an accelerator,

• Secure financial backing,

• Attract investments.

Moreover, contributors and investors can use the platform to discover startups for job and investment opportunities, creating a mutually beneficial environment for all stakeholders involved.

User and Project Engagement on NEAR Horizon

As of June 28, 2023, NEAR Horizon has welcomed 165 projects, 29 contributors, and one backer or investor, according to the platform’s official website. Detailed data can be accessed on the NEAR Horizon tab.

A deeper dive reveals that a majority of the projects listed on NEAR Horizon are inactive, with only 8 projects currently active. These active projects collectively boast over 5,600 users who have conducted 597,000+ transactions, costing them a total of 3,100+ NEAR tokens (equivalent to about $4,123).

The Inaugural Election in the NEAR Ecosystem

In September 2023, the NEAR Digital Collective (NDC) held its inaugural elections, which were a key milestone in advancing the decentralization of the NEAR Protocol. This event established a mechanism for direct participation and governance, allowing the NEAR community to have a say in decision-making processes. 

It represents not only a significant moment in the history of the NEAR ecosystem but also a notable advancement for the broader Web3 movement, emphasizing community-driven governance.

What is the NEAR Digital Collective?

The NEAR Digital Collective (NDC) is a self-governance initiative within the NEAR ecosystem, aiming to assemble various stakeholders to foster a community-driven governance approach. It is positioned as a grassroots movement led by the NEAR community to advance decentralized Web 3.0 Governance on the NEAR platform. 

Its most important goal is to create an ecosystem-wide self-governance structure and treasury, enhancing transparency and fairness by moving decision-making processes onto the blockchain. This initiative aligns with broader goals of decentralization and on-chain governance prevalent in the blockchain sector.

Why is the NDC important?

With over 1,000 projects, regional hubs, funding nodes, infrastructure providers, and more than 20 million wallets, the NEAR ecosystem is vast. The NEAR Digital Collective (NDC) was established to enable everyone involved to actively contribute to NEAR’s evolution. This includes decisions on funding allocation, election processes, and representation of the wide array of interests within this vibrant ecosystem. The goal is to ensure that everyone has a voice and that these voices are recorded on-chain for transparency and inclusivity.

How Is NDC Structuring Governance?

The NDC (NEAR Digital Collective) is in the process of establishing a governance system that, once operational, will empower individuals to vote on a range of issues, elect representatives to various governing councils, and even propose amendments to the constitution.

Central to the NDC’s mission is the creation of this transformative governance framework, which will allow the community to engage and play a proactive role in shaping the future of NEAR.

Currently, the NDC is focusing on establishing a governance structure that consists of:

• Voting Body. This includes all active NEAR accounts, as defined by the governance framework.

• House of Merit. Composed of seasoned community members selected by ecosystem participants to represent them during voting processes and crucial decisions.

• Council of Advisors. Appointed advisors tasked with guiding the House of Merit’s direction.

• Transparency Commission. Community members appointed to ensure that checks and balances are maintained and adhered to.

• Community Treasury. Managed by the House of Merit members with assistance from the Council of Advisors, it facilitates voting on the allocation of community funds.

The Road to NDC’s V1 Governance

The NEAR Digital Collective (NDC) is advancing from its initial governance version (v0) towards a more structured V1 Governance Model. The goal of V1 is to establish frameworks that allow every NEAR Protocol network member to engage in the governance process. 

Recent interactions have unveiled challenges in this governance evolution. The Council of Advisors (CoA) has delineated a transition timeline from NDC v0 to V1 and explored funding guidelines for grassroots Decentralized Autonomous Organizations (DAOs).

• Statement from House of Merit (HoM)

After a supposed request from NDC Trustees, the HoM, a designated group within NDC, voted on the Governance Working Group (GWG) returning unused funds to the Trust, pausing GWG’s October funding temporarily. It was later clarified that the request didn’t directly come from NDC Trustees, leading to confusion about fund allocation and budget control.

• Statement from Council of Advisors (CoA)

The CoA acknowledged the governance is still in the initial version (v0) phase. They highlighted that the transition to the enhanced version (V1) governance, aimed to be completed by November 24th, necessitating community approval on priorities and budgets. They advised continuing the existing funding model for community DAOs until V1 governance is activated, ensuring financial steadiness during this transition.

Conclusion

The various advancements in the NEAR ecosystem, along with many other developments, have triggered a series of positive changes. There’s a growing interest from a wide array of projects, each making a valuable contribution to the ecosystem’s growth and development.

The momentum is clearly reflected in the statistics: the number of live NEAR accounts has soared past 30.5 million, with over 400 million transactions processed to date. A particularly striking statistic is the daily average of 700,000 active accounts noted since September, as illustrated in the accompanying chart. As NEAR ambitiously aims to onboard 1 billion users, the platform remains unwavering in its dedication to adopting pioneering technologies. The objective is to transform Web3 into the most user-friendly and accessible domain for everyone involved: users, developers, creators, and contributors alike.