The Near protocol is one of the new-generation blockchains alongside Cardano, Solana, and Polkadot to improve “scalability, decentralization and security tradeoffs.” Bank of America said in a research report released on March 23.
Blockchains like Nia that offer increased functionality and incentives for development are likely to be attractive to developers in the short term, the report said. Nia’s sharding approach is said to “mitigate common scaling issues related to increased centralization through pooling and reduced security due to mismatched incentives.”
But it’s too early to pick long-term winners and losers.
“In the long term, we expect that blockchains that prioritize usability and market effectively will gain market share by attracting a robust and diverse ecosystem of applications that drive adoption, network effects and cash flow. wrote analysts Alkesh Shah and Andrew Moss.
Bank of America says that while other blockchains focus on maximizing throughput, Near prioritizes network usability, but more needs to be done. Despite its focus on ease-of-use, innovative architecture and an ecosystem of over 1000 applications, the bank notes that development in 2022 will be sluggish compared to the previous year.
Transaction fees have declined since the first quarter of 2022, and the rate of new user growth has also declined since the second quarter of 2022, suggesting that “applications are no longer driving accelerated user growth.” the report said.
Many of the software behind 3rd generation blockchains such as Cardano, Solana, Polkadot, Tron, Avalanche, and Nia are “still immature,” and the development of these innovative technologies is “still in its infancy.” in,” the report added.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Nia billboard in Lisbon, Portugal (Zack Seward/CoinDesk)
｜Original: Next Evolution of Blockchain Software Has Only Just Started: Bank of America