Near Protocol (NEAR) Explained: How Near Works in the United States
Learn what Near Protocol (NEAR) is, how it works, its legal status in the United States, use cases, benefits, risks, taxes, and future outlook.
Table of Contents
Introduction
Near Protocol (NEAR) is a next-generation blockchain platform designed to make Web3 applications fast, scalable, and easy to use. Unlike early blockchains that often struggle with high fees and complex user experiences, Near focuses on developer friendliness and mass adoption.
In the United States, Near Protocol has attracted attention from Web3 developers, startups, investors, and enterprises looking for a high-performance blockchain that balances usability with decentralization.
This article explains what Near Protocol (NEAR) is, how it works, its legal status in the United States, use cases, advantages, risks, and future outlook in clear, human-friendly language.
What Is Near Protocol (NEAR)?
Near Protocol is a Layer-1 blockchain platform built to support:
- Smart contracts
- Decentralized applications (dApps)
- DeFi platforms
- NFTs and gaming
- Web3 consumer applications
NEAR is the native cryptocurrency of the Near network and is used for:
- Paying transaction (gas) fees
- Staking and securing the network
- Governance participation
Near’s mission is to make blockchain accessible to everyday users, not just technical experts.
Who Created Near Protocol?
Near Protocol was founded by Alexander Skidanov and Illia Polosukhin, both experienced software engineers.
The project is supported by the Near Foundation, which has strong ties to the United States through:
- US-based developers and teams
- Venture capital funding
- Web3 research and education initiatives
Near’s development culture aligns closely with the US startup and innovation ecosystem.
How Does Near Protocol Work?
Near uses a Proof of Stake (PoS) consensus mechanism combined with a unique scaling technology called sharding.
Key Near Protocol Features
1. Nightshade Sharding
Near uses Nightshade, a sharding design that:
- Splits the network into smaller parts (shards)
- Allows parallel transaction processing
- Improves scalability and throughput
2. Proof of Stake Consensus
Validators stake NEAR tokens to:
- Secure the network
- Validate transactions
- Participate in governance
3. User-Friendly Design
Near simplifies Web3 by offering:
- Human-readable account names
- Low transaction fees
- Fast transaction finality
These features improve usability for US consumers and developers.
Why Near Protocol Is Important in the United States
Near is important in the US crypto ecosystem because:
- It focuses on mainstream Web3 adoption
- It offers a developer-friendly environment
- It supports consumer-focused applications
- It aligns with US startup and venture culture
- It emphasizes usability and scalability
Near’s design helps bridge the gap between traditional internet apps and blockchain technology.
Near Protocol Use Cases in the United States
1. Web3 and Consumer Applications
US developers use Near to build:
- Social platforms
- Creator tools
- Web3 marketplaces
Near’s low fees and simple onboarding make it suitable for consumer apps.
2. DeFi (Decentralized Finance)
Near supports DeFi applications such as:
- Decentralized exchanges
- Lending and borrowing platforms
- Stablecoin services
These applications benefit from fast transactions and low costs.
3. NFTs and Digital Assets
Near is used for:
- NFT marketplaces
- Gaming assets
- Creator-focused digital collectibles
Its efficiency appeals to US creators and brands.
4. Enterprise and Startup Innovation
US startups use Near for:
- Rapid product development
- Scalable blockchain infrastructure
- Web3 experimentation
Near’s tooling reduces development friction.
Is Near Protocol (NEAR) Legal in the United States?
Yes. Near Protocol (NEAR) is legal to own, hold, and trade in the United States.
Key points:
- NEAR is supported by US-compliant exchanges
- Ownership of NEAR is not illegal
- Regulation focuses on exchanges and services
- Users must comply with KYC and AML requirements
Near operates within the evolving US regulatory framework.
Near Protocol and US Regulation
In the US, crypto oversight involves:
- SEC (Securities and Exchange Commission)
- CFTC (Commodity Futures Trading Commission)
- US Treasury and FinCEN
Near is generally discussed as a blockchain infrastructure platform, which may support clearer regulatory treatment in the future.
Near Protocol vs Ethereum (US Perspective)
| Feature | Near Protocol (NEAR) | Ethereum (ETH) |
|---|---|---|
| Scalability | High (Sharding) | Layer-2 dependent |
| Transaction Fees | Very low | Variable |
| User Experience | Simple | More complex |
| Developer Experience | Very friendly | Mature but complex |
| US Startup Adoption | Growing | Very high |
Near focuses on usability, while Ethereum leads in ecosystem size.
Advantages of Near Protocol (NEAR)
- High scalability through sharding
- Low transaction fees
- User-friendly account model
- Energy-efficient Proof of Stake
- Strong US developer interest
- Suitable for consumer Web3 apps
Risks and Challenges of Near Protocol
- Smaller ecosystem compared to Ethereum
- Competition from other Layer-1 blockchains
- Regulatory uncertainty
- Market volatility
- Need for broader user education
Near is best evaluated as a long-term platform for Web3 adoption, not just a speculative token.
Near Protocol (NEAR) and Taxes in the United States
NEAR transactions are subject to US tax laws.
Taxable events include:
- Selling NEAR for USD
- Trading NEAR for other cryptocurrencies
- Using NEAR for payments
- Receiving NEAR from staking rewards
Holding NEAR alone is generally not taxable, but accurate IRS reporting is required.
Future of Near Protocol in the United States
Near’s future in the US looks promising due to:
- Growth of consumer-focused Web3 apps
- Increasing developer adoption
- Expansion of DeFi and NFT ecosystems
- Continued emphasis on usability and scalability
Near Protocol is positioned to become a key platform for mainstream Web3 adoption in the United States.
Is Near Protocol Safe to Use in the US?
Near Protocol is widely regarded as secure, but users should:
- Use reputable US-compliant exchanges
- Store NEAR in secure wallets
- Understand tax and regulatory obligations
- Diversify crypto holdings
Security best practices are essential.
Conclusion
Near Protocol (NEAR) is a modern blockchain platform built for speed, scalability, and usability. In the United States, Near stands out as a developer-friendly and consumer-oriented blockchain, well-suited for the next wave of Web3 applications.
As blockchain adoption grows and user experience becomes more important, Near Protocol is likely to play a significant role in shaping the future of Web3 in the US.