What happened?
NEAR Protocol announced the achievement of 600-millisecond block time with a finality of 1.2 seconds, promising faster and more secure blockchain transactions. This improvement places NEAR ahead of other major blockchains like Solana and Ethereum in terms of transaction speed. The development came as a result of upgrading their consensus mechanism and sharding process.
Who does this affect?
This advancement impacts developers, businesses, and users relying on blockchain for applications such as AI, gaming, and finance by providing a faster and more efficient platform. Developers can build real-time applications without concerns over transaction delays or confirming blocks multiple times. Additionally, users benefit from reduced reliance on centralized intermediaries, improving security and lowering risks.
Why does this matter?
NEAR’s improvement in blockchain speed and finality could lead to increased market adoption as it now delivers real-time experiences similar to traditional web services, without sacrificing blockchain security. Faster transaction speeds can encourage innovation and expansion in decentralized applications, potentially attracting more developers and users to the ecosystem. This technological leap may impact NEAR’s market value positively as evident by its recent price increases.