Nano (symbol: NANO) the name before changing its brand name to Nano in late January 2018, was RaiBlocks (XRB). This is a payment platform that provides scalability, fast processing speed, and especially for zero fees. Basically, the goal of Nano is similar to Bitcoin; the desire to become the common currency of the world can replace fiat money (legal) and daily use.
Nano addresses the major problems Bitcoin, and many other digital currencies are facing:
- Fixes scalability issues, helping users no longer have to worry about increased transaction fees on the network like Bitcoin.
- Calculation problems make the transaction time up to 164 minutes.
- The energy consumption for Bitcoin mining is rising higher than the power consumption in more than 159 countries.
How does Nano work?
Nano works the same way as IOTA but somewhat improved. Nano is using the DAG algorithm in conjunction with its own system called Block lattice, where each individual is assigned their own blockchain. Unlike other blockchain structures that only track the number of transactions, block-lattice also records account balances.
This method shortens the data stored through database cropping. Each blockchain reflects information regarding the individual’s account and is updated only by the owner, after which each blockchain is updated asynchronously with the rest of the block-lattice.
When people control their blockchain, protocols like Proof-of-work (PoW) or Proof-of-stake (PoS) are no longer needed in deciding the status of accounting ledgers.
1. To create an account
Users need to start open trades. This transaction is the first transaction of each account chain and is created when the first transaction block is received.
2. Account balance
All balances are recorded in the user account chain. Instead of recording the number of transactions, the process verifies the request to check the difference between the previous deposit balance and the current balance. New blocks increase or decrease with the final balance on the new receiving blocks. This is to improve processing speed when downloading transactions with high block numbers.
3. Send from account
The sending address must have an open block, so there will be a balance. At the beginning of the transaction, once confirmed, the block number cannot be returned to the sender’s account. When the network is aware of the existence of the transaction, the money will be deducted immediately from the sender’s balance and pending until the recipient signs the block and receives the money. Pending approval, the money will be considered for spending on the sender’s account even though it has not been received since the sender cannot later revoke the transaction.
4. Receive transactions
To complete the transaction, the recipient creates a block on his account to accept a deposit. Once the block is created and accepted, the funds will be updated to the account with a new balance.
Nano project development team
The Nano Project’s development team consists of 12 people from a wide range of industries, including technology, strategy, business, mostly from large financial institutions. Some outstanding members:
Colin LeMahieu: Founder and currently managing director of the project, he has 10 years of experience in software development.
Russel Waters: The main developer, he has been involved in the cryptocurrency space since 2013, having worked on various cryptocurrency projects.
The remaining people include developers, Public Relations and Community Developers, Designer, legal consultants, and the team ‘s only commission responsible for managing human resources and partners.
Nano has some outstanding advantages
Highly scalable: transactions processed separately will be advantageous when deleting nodes in the root network. Since then, transactions no longer have obstacles from the Blocks size as before.
Nano’s decentralization: thanks to the Delegated Proof of Stake (DPoS) algorithm, Nano Coin can determine what is a valid transaction in case of any conflict during the transaction.
Limit transaction time: the chain of accounts will be closely linked, so a lot of trading time will be saved in this model.
Transactions will be done for free: not only for free, but transactions are also handled independently, eliminating block size issues.
Limited energy and high decentralization: with DpoS, the benefits of Nano Coin will be greater than that of Bitcoin. Nano can protect itself from unexpected attacks during mining, preventing the abuse of the influence of delegates holding shares of Nano Coin. Therefore, users only need to verify transactions when transactions occur. Since then, a node on the Nano network consumes much less power than networks using the Proof-of-Work consensus protocol.
Read more:
- What Is Hash Rate? Why Does The Hash Rate Determine The Fate Of Bitcoin?
- What Is Scalping? How To Apply It Effectively?