CryptoTelegraph often spends time reporting on technology news in general but our main passion is reports based on cryptocurrencies. In that spirit we have written a comprehensive report about a very hot up and coming DAG called Nano (XRB). In this report we will present the information you need to know in order to increase awareness of this revolutionary new technology.
What is Nano (XRB)?
Nano is a shared cryptocurrency and open source programming venture like Bitcoin with a much more advanced structure. It has been designed to optimize low inertness, high throughput and a fee-free transaction model. It is a digital currency that has been designed for scalability.
Nano is part of a new generation of cryptocurrencies gaining popularity; a generation of fast, feeless, minerless cryptocurrencies (FFM for short). There are a few contenders in this category Steem, IOTA and EOS (They are due to launch their own blockchain soon so expect big things).
Image of DAG (Directed acyclic graph) via Wikipedia.
Nano uses a crypto architecture they call “block lattice”. This is explained in detail on their wikipedia page which I recommend reading.
Nano isn’t a single long blockchain, like Bitcoin or Ethereum; it is a database of blockchains where each user (or address) gets their own blockchain that only they can add onto.
To explain further, users send funds by creating two blocks: one send block on their personal blockchain and one receive block on the recipient’s blockchain. Users receive funds by “pocketing” any outstanding receive blocks into their personal blockchain.
Don't worry, users don't have to be online to receive funds (this has been a worry brought up by users asking about Nanos’ novel “pocketing” system).
Nano handles the receiving part of the transaction when the user decides to access their funds. At the time of access, the wallet itself will automatically “pocket” any outstanding funds. Pocketing funds just means signing the receive block with your private key, so that it can be added to your personal blockchain.
If you aren't familiar with all this tech talk its ok. Just know that we are looking at a contending technology to replace Web 2.0 as the new king of the jungle, Web 3.0.
Nano are in direct competition with IOTA and they both work in a similar but different manner. To provide an example, with IOTA, transactions get attached to the “tangle”, which is a directed-acyclic-graph (DAG) data structure. (Git works using this same data structure!)
As more transactions get added to the tangle, a “weight” is added to attached ancestor transactions. When a transaction has enough weight, the transaction will exhibit a “confirmed” status. In principle, this confirmation could be as quick as seconds when there is a sufficient flow of transactions across the network.
With Nano, there is a different confirmation system based on “representatives”. In general, all that is needed is your cryptographic signature on your “send” and “receive” blocks. When the node syncs, it runs through the ledger to ensure that the signatures are authentic.
This seems to be a major advantage that RaiBlocks has over IOTA although both are considered DAGs.
According to my source, Nano has excellent API support. They have RPC libraries, for interacting with nodes in Javascript, Python, PHP, and Elixir.
Where did the Nano tokens come from?
Nano is a “pre-mined” token. This means that their ledgers started out with a certain amount of cryptocurrency that can never change. Over time, these tokens have been bought, sold, and moved around with ICOs and Faucets, increasing the general users’ attainment of these cryptos.
This is something I'm not very hot on but their biggest competitor IOTA did the same thing so I'm not bothered by this too much...
Interesting Technical Facts about Nano
Ready for some math? The max supply of Nano is on the order of 2¹²⁸ ~ 340e36, or 340 undecillion. The reason this is such a large number is because they utilize a 128 bit integer to represent balances. (This may actually be a good thing.)
Their actual max supply is about 133,248,290 MXRB, where 1 MXRB represents 10³⁰ (or 1 nonillion) raw RaiBlock units. The max supply can be denoted as roughly 133e36, or 133 undecillion raw RaiBlocks.
Want to see a really big number? This is the numerical value for max supply in raw units:
133,248,290,000,000,000,000,000,000,000,000,000,000.
That’s 39 digits! For comparison, this means there are about 48 sextillion raw Nano for each and every IOTA that could ever exist. Now thats an interesting ratio!
Why we are so impressed with Nano..
Imagine that our world has 75 billion IoT devices by 2025. The world we are imagining has billions of people owning cryptocurrencies by 2025.
Lets also presume to think that these IoT devices own all the crypto. Now, if my calculations are correct, the average amount of crypto that will be shared among these future 75 billion devices will be on the order of 37 thousand IOTA (or 37 kIOTA) or 1.78 octillion raw RaiBlocks (or 1.78 kXRB).
What this means is that RaiBlocks will be much more flexible in a transactional sense. Therefore it is very likely that RaiBlocks has a real opportunity to dominate the IoT space in the coming years. This will most likely happen unless IOTA upgrades their protocol to either increase the max supply or allow for divisible IOTAs.
CryptoTelegraph Summary
We learned quite a few things in the process of writing this article and we'd like to summarise the main points about Nano here:
1.) They are state of the art, they operate one of the only DAG blockchain type systems and have very few competitors.
2.) They are built for maximum speed and scalability. They are built for the IOT.
3.) They have modernized some of IOTA's best practices and advanced upon their technology using a few very interesting approaches.
4.) Very few people know about them yet so we are ahead of the game if we want to fill our bags.
Disclaimer: We have not invested in Nano yet but @CryptoTelegraph is in the process of doing additional research and believes this may be a good investment at the moment.
We hope you enjoyed reading this. Please leave your thoughts and comments below!
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