Near Protocol Enhances User Accessibility with New Chain Signatures Feature
Summary:
The Near Foundation has announced that the Near Protocol now supports chain signatures, boosting users' ability to access different chains using a single Near account. The new feature is secured by Near network validators and a decentralized multi-party computation network. It enables users to transact across various platforms including Bitcoin, Ethereum, Cosmos, Dogecoin, and XRP Ledger, creating new opportunities in the decentralized finance sector. Despite a remarkable increase in active wallets, the foundation reduced its workforce by 40% and announced the departure of its CEO, Marieke Flament.
The non-profit entity supporting the tier-1 Near Protocol, The Near Foundation, has announced that the protocol now facilitates chain signatures. This enhancement provides users the capability to link to various chains via their Near account. A recent official announcement revealed that the Ethereum-based restaking project, Eigenlayer, has teamed up with Near and is contributing to the security of the chain signatures mechanism. The chain signatures function is underpinned by a distributed multi-party calculation (MPC) network and kept secure by Near network validators.
Chain signatures are a type of cryptographic signatures that permit users to endorse transactions on a blockchain using a private key connected to an account on a different blockchain. This property allows cross-chain interoperability, thus enabling users to access and engage with numerous blockchains using a single wallet or account.
The recently introduced Chain Signatures function lets any Near account manage any number of addresses across all blockchains. This opens up new possibilities in decentralized finance. Near Foundation has hinted at further security input from EigenLayer in the future. As per the Foundation, "For the first time, decentralized finance (DeFi) on non-smart contract chains has been made possible on numerous networks including Bitcoin. Developers have the comfort of building DeFi products that leverage assets from multiple chains without the need to bridge these assets."
Currently, Chain Signatures works with Ethereum, Cosmos, Dogecoin, Bitcoin, and XRP Ledger. Supports for Solana, TON Network, Polkadot, and other networks are in the pipeline. Users are spared the need for the native gas token of other chains for transactions thanks to the inclusion of a "Multichain Gas Relayer" in the feature. Users can use NEAR or NEP-141 tokens for covering gas across any chain.
This service underlines Near's ongoing work in the "chain abstraction" project where they aim to simplify the crypto user experience by tackling the intricacies of a multichain ecosystem. The Chain Signatures feature is currently in operation on Near’s testnet, with an expected move to its mainnet by the start of May, according to Near's representative.
On January 11, Near reported a 1,902% surge in unique active wallets (UAW) interacting with its Web3 app, as per a DappRadar blockchain analytics report. Despite strong financial footing, the Foundation reduced its personnel by 40%. The Near Foundation openly declared the exit of its CEO, Marieke Flament, on September 21, 2023, who guided the company's treasury balance to increase to 330 million NEAR, estimated to be $350 million at her departure, without stating specific reasons.
Published At
3/27/2024 11:00:22 AM
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