In our next Crypto Learning we will look at a crypto currency that is addressing the scalability and high fees problem with many other crypto currencies. Previously known as Raiblocks the now rebranded Nano takes and interesting approach to solving the common problems with cryptocurrencies.
Nano in its essence was designed to be a peer to peer payment system. What makes Nano unique is that it uses a Block lattice. A Block lattice is a structure where every account has its own personal blockchain and each block consists of one transaction. Therefore, within a Block lattice architecture each account blockchain will contain the users’ complete transaction history.
A very interesting fact about Nano is that all Nano/Raiblocks was distributed using faucets, meaning it was all given away for free. All Nano coins are already distributed and in circulation, this has eliminated the need for miners.
When creating a transaction, it requires 2 blocks to be created, a sender creates a send transaction and the receiver creates a receive transaction. This architecture makes the network completely peer to peer and eliminates the need for a middle man and therefore transactions can be free and almost instantaneous. Securing network with Proof of Work to prevent spamming on the network, before sending a transaction the node must solve a small cryptographic puzzle (30 seconds and can be pre-calculated as all that is needed is the previous block) to confirm the transaction.
The following image from the Whitepaper explains it nicely:
Whenever two conflicting blocks occur, Nano uses Proof of stake to vote which block is legitimate. The voting power is distributed 1 token = 1 vote. Voting Power can also be delegated to ensure that your vote is represented.
The following image from the whitepaper shows how it works.
My opinion is that the technology behind Nano is clearly impressive and solves to major payment problems for cryptocurrencies. The question that I do however have is, is it always the best technology that gains market adaption? I think it is a very intelligent way to solve the problems and shows that there are still many adaptions or adjustment that can be made to blockchain technology to solve existing problems.
This is however just my opinion. What do you think about Nano? Can Nano dethrone the bigger Currencies? Is there anything I missed? What development would you like to see next?
Thanks for the support…Until next time…
Sources:
https://raiblocks.net/media/RaiBlocks_Whitepaper__English.pdf
https://www.youtube.com/channel/UCrYmtJBtLdtm2ov84ulV-yg
https://www.youtube.com/channel/UCZZyLq2q36sVGWOAAk9_EtQ
https://nano.org/en
https://blockk.co.uk/xrb-nano/
https://www.studiobitcoin.com/raiblocks-xrb-confirma-rebranding-para-nano/