# 5. You and NEAR Protocol 🎆

# Introduction

# Web3 is a network of blockchain networks, and NEAR is one of them

• not all blockchains are alike

• NEAR is a Layer 1 (L1) blockchain

  • layer 2(L2) blockchains use architecture of existing blockchains
    • Polygon is built on top of Ethereum, which is a layer 1 blockchain
  • NEAR is built from the ground up
    • NEAR has its own chain with its own rules and architecture

• Instead of PoW to create trust, NEAR uses Proof of Stake(PoS)

  • PoS is humans validating transactions, and staking a large amount of money that they will be honest about it
    • validators can earn historical returns on their staking
    • it's cheaper to tell the truth than to lie
    • validators get "kicked" off the network if they don't follow certain rules
    • PoS is CARBON NEUTRAL 🌎 ❤️

# Interfaces on NEAR are similar to other Web3 networks

# protocol layer

• base layer
  • L1 blockchain
• blockchain architecture
  • nodes split into mini processors (sharding) to improve network availability
  • PoS validation
  • localnet (aka devnet) for dApp development
  • testnet for testing dApps
  • mainnet for launching dApps

# infrastructure layer

• nodes are virtual computers you can download locally

  • when you download a node locally, you can refer to it as a client node since it will be interacting with the network in a similar way that your computer does.

• indexer nodes

  • nodes anyone can run locally to listen to network updates
  • querying all blocks in the chain can be cumbersome
  • Indexer makes it easier to search the blockchain
    • Google indexes web pages so they are easier to find

• block nodes

  • contain copy of the blockchain to increase network availability

• archival nodes

  • contain copy of the entire blockchain from its genesis

• validator nodes

  • nodes used by validators to review transactions

• Wallet

  • account management

• Explorer
  • transaction history of any account

• JSON RPC (Response-Procedure-Call)
  • API for interacting with the blockchain

# use case layer

• DeFi
  • ref.finance
• Gaming
  • berry.club
• Bussiness Development
  • DAO
    • Sputnik

# access points layer

• top layer

  • Wallet
  • Explorer
  • JSON RPC

• NEAR's infrastructure of modules can be broken down and reconfigured for new use cases

  • create new primitives like message protocols
    • Machina is a PoS decentralized storage solution built on NEAR
  • dApps can use any number of primitives for their use cases
    • how would you create AirBnB on NEAR?

# Data and NEAR

# data in motion 🏃

• data travels accross many different protocols within the network
  • data fetched from centralized and /or decentralized database
  • transaction data retrieved from JSON RPC and broken down into http packets that are returned to client
  • data about chain state propagated to entire network like gossip

# data at rest 😴

• immutable data stored on chain
• data stored in browser local storage
  • access keys
• data stored on local machine
  • access keys
• data temporalily stored in memory while dApp is running
  • access keys
• data stored on decentralized databases
  • IPFS
  • Machina

# Time on NEAR 🕛

• current block height is accessible to anyone with a computer and an internet connection
• new blocks are added every second
• some blocks contain zero transactions
• transactions you make are queued using nonces (tally of transactions a given key on your account has made)
  • tx with nonce#4 isn't added to the chain until nonce#3 has been added

# Your Relationship with NEAR

# Identity 🤳

• your mainnet account (yourname.near) allows you to interface with any other account

  • subaccounts you create (myname.yourname.near) can build your reputation
  • you are paid in $NEAR for your engagement in the network
    • earn to play
    • earn to learn

• contracts have accounts as well

• accounts can have zero or one contract deployed to them

• your account associated with your NEAR wallet does not have a contract deployed on it

# Ownership 🔑

# you have complete control of your account

• your wallet works like a keychain
• you can create keys for your account
  • key pairs - private and public, actually
  • private key is stored on your machine
  • public key is used to sign transactions
  • when you sign a transaction the transaction verifies that your hidden private key and your public key are indeed a valid key pair
• you can authorize dApps to add permissioned keys to your account
  • like when you give a valet a special "valet key" to park your car
    • the valet key has just enough functionality to get the task done
    • dApps basically do the same thing
      • they give you a functional access key
        • you can only call certain functions on the dApp's contract with it
        • you don't have full access
          • full access keys allow you complete control over an account
• you can de-authorize a dApp on your account
  • this is like signing in with google
    • google confirms you are authorizing the app on your google account
      • you can set special permissions like allowing google to read and edit your calendar
    • you can de-authorize any web apps associated with you google account too - web3 is very similar
• you can delete all keys from your account, and render it inaccessible by anyone (including you!) forever

# you are your own security 🔏

• no one can remove assets from your wallet without your permission
• if someone gets your private key, however, they have full access to your account
  • your funds are at the whim of whoever has your private key
  • ⚠️ !!!NEVER SHARE YOUR PRIVATE KEYS!!! ⚠️
  • there are no middlemen in Web3
    • no one at NEAR has the ability to "reset your password"
  • be vigilant!
    • store your seed phrase outside of any devices connected to the internet
    • rotate your keys periodically

# transactions are irreversible

• if you send / receive funds no one can reverse the transaction

• your transaction history is available to anyone at anytime

  • hyper-transparency
  • no privacy on the blockchain
    • do not store anything you aren't ready to share with the rest of the world

• NEAR has standards the NFT contracts must follow to be considered current and credible

  • if an NFT contract lists you as the owner of a digital asset, your ownership is indisputable.

# Structure of NEAR 🏛️

# NEAR is decentralized

• NEAR is community based
• NEAR doesn't own any nodes on its network

# NEAR is part of Web3, and therefore relies on Web2, which is very much centralized

# Quiz

# Epilogue

# What questions to ask?

• remember, although we are building something new, the ideas have been around for a long time.
  • at it's core, the web is just requests and responses between clients and servers; if that relationship isn't clear when reviewing a dApp then your questions should investigate that
• Hopefully, the analogy of your house and neighborhoods being like computers and networks will help you make sense of distributed systems
  • When you hear "node", you now know that could mean several different things:
    • some sort of computer, right?
      • probably a computer in a network
    • did you know "node" could also refer to a programming language called NodeJs?
      • many contracts are built in a "node environment". When you hear "environment" it's usually a clue that they are talking about NodeJs.

# What Next?

• Smart Contract Scavenger Hunt

• Check out NEAR University

• Learn to build on NEAR!

• Take a NEAR Certification course

• Learn the Fundamentals of Computer Science