What is Nano?
Nano is a cryptocurrency that focuses on making instant and free transactions. Nano is different than many other cryptocurrencies because it uses a unique block-lattice structure. According to the Nano whitepaper, each account has its own blockchain that is equal to the account’s transactions history. Each chain updates immediately and at the same time which results in quick transactions. Nano is much more energy efficient than Bitcoin because the protocol is lightweight and doesn’t require high-power hardware.
Nano tries to solve many of the issues that Bitcoin and other cryptocurrencies are facing. Nano focuses on solving scalability, latency and power inefficiency issues. Blocks in a blockchain can only store a limited amount of information. As a result, transactions can be slow and expensive. In addition, cryptocurrencies like Bitcoin require a massive amount of energy to function. A recent study suggests that Bitcoin uses as much energy in a year as all of Ireland.
Nano uses its novel block-lattice architecture to deliver fast and scalable transactions. Each Nano account has its own blockchain which is updated instantly and can only be updated by the owner. Additionally, each user’s blockchain is updated at the same time to the rest of the block lattice. The block lattice structure bypasses the Bitcoin bottleneck where a new block can only be made every 10 minutes. Nano keeps track of account balances rather than transaction amounts which requires much less data. Nano is much more energy efficient than Bitcoin because the protocol is lightweight and doesn’t require high-power hardware. Each transaction requires a send (S) and a receive block (R) in order to be processed.
History and Distribution
Colin LeMahieu started Nano in 2014 as a side project. However, the fully functional mainnet wasn’t launched until 2017. The project was originally called Rai Blocks but was recently rebranded to Nano. Nano was originally distributed using a captcha-based faucet distribution system. Users would have to fill out a captcha in order to receive Nano. Distribution was stopped after 39% and the rest of the supply was burnt. Many people believe this was a very fair distribution as only 5% of the max supply was kept by the developers and anyone was able to receive Nano in the original distribution.
Colin LeMahieu, a software developer with 10 years of experience created Nano. The team has a diverse background and skill sets. To meet the rest of the team, check out this link.
Like all cryptocurrencies, Nano has had to make some tradeoffs in order to have such a fast and lightweight protocol. For example, Nano is even less private than Bitcoin. Privacy is not a priority of Nano, so keep in mind that your transaction history using Nano is publicly available. However, Colin LeMahieu has claimed that a privacy feature could be a possibly in the future. Also, Nano’s security has not been tested as rigorously as a more established cryptocurrency like Bitcoin. Also, Delegated proof of stake is often accused of being a centralized method of consensus.
BlockWolf is bullish on Nano because it has such a strong community. We have noticed that the Nano community is one of the most supportive and mature communities in all of crypto. BlockWolf also believes that Nano solves very important issues that many cryptocurrencies face. If Nano proves itself to be secure and scalable, it may be one of the most useful and efficient cryptocurrencies. While Nano is missing privacy features, we do not believe that privacy is as important as speed for the average consumer’s needs.