Near Protocol and Ethereum both aim to solve the scalability issues that have long plagued blockchain technology, but they adopt different approaches to do so. Near Protocol employs a novel sharding mechanism called "Nightshade," while Ethereum is transitioning to Ethereum 2.0, which also incorporates sharding.

Near Protocol's sharding solution, Nightshade, divides the blockchain into multiple shards, each capable of processing its transactions and smart contracts. This approach enhances scalability by allowing parallel transaction processing, thereby increasing the overall throughput of the network. Nightshade's design ensures that the security and decentralization of the network remain intact, even as the number of transactions scales up. Moreover, Near's approach includes dynamic resharding, which adjusts the number of shards based on demand, ensuring efficient resource utilization.

Ethereum, the pioneer of smart contracts and decentralized applications, has faced significant scalability challenges. The transition to Ethereum 2.0, also known as Serenity, introduces a Proof-of-Stake (PoS) consensus mechanism and sharding to address these issues. Ethereum's sharding will split the network into 64 shards, each capable of processing its transactions and smart contracts. This transition aims to dramatically increase the network's capacity and reduce transaction costs. Ethereum's vast developer community, extensive dApp ecosystem, and robust security measures provide it with a strong foundation.

While Near Protocol's Nightshade offers a highly efficient and scalable solution, Ethereum's extensive adoption and ongoing development efforts present significant competition. Ethereum's transition to Ethereum 2.0 is complex and has faced delays, but its established position in the market gives it a substantial advantage. Near Protocol, being a newer entrant, has the potential to outpace Ethereum in specific scenarios, particularly if Ethereum 2.0's rollout continues to face hurdles.

In conclusion, while Near Protocol's sharding approach is innovative and promising, Ethereum's established ecosystem and ongoing transition to Ethereum 2.0 will likely maintain its leading position. However, Near Protocol’s efficiency and scalability make it a formidable competitor, especially if it can capitalize on any delays or issues faced by Ethereum.