author: jeffrey craig date: June 16, 2021
summary
- nano is similar to bitcoin, but faster, more flexible, and more affordable to transact with. nano aims to replace fiat currencies by offering a currency that people can use in their daily lives for everyday purchases.
Reading: Nano vs bitcoin
what is nano currency?
Raiblocks, the original version of the nano coin, was launched in December 2014 by Colin Lamahieu. it was one of the first cryptocurrencies based on directed acyclic graphs (dag). however, since the name raiblock did not resonate with the project’s intended target audience, the name was changed to nano in 2018.
nano versus bitcoin
nano is similar to bitcoin, but faster, more flexible and more affordable to transact. essentially, it is a cryptocurrency that aims to replace fiat currencies. offering a currency that people can use in their daily lives for everyday purchases. Unlike bitcoin, nano does not rely on proof of work (pow) to protect its network, but uses a unique consensus mechanism called open representative voting (orv).
how does nano work?
nano uses the blockchain, a data structure that allows users to control their own blockchain. allows the network to add blocks without conflict and send them for confirmation. these blocks are structured in such a way that they contain all the information about an account. each block includes a small user-generated pow value that allows the network to process transactions instantly and consistently.
See also: How Much Does It Cost to Mine 1 Bitcoin? – Decrypt
The platform validates transactions using the orv consensus mechanism, which includes proxies and a voting system. Each account in the Nano Network can choose a representative at any time to vote on their behalf. all representative accounts are set up on online nodes and vote to validate a transaction. the greater the sum of the balances of the accounts that delegate to representative accounts, the greater the chances of becoming a primary representative. when these votes are shared between nanonodes, they are counted and compared. after a node has received enough votes, a block is confirmed.
nano benefits
zero fees and high tps rate
Considering bitcoin’s high fees, nano is a much better option for day-to-day transactions as it doesn’t charge transaction fees. not charging on transactions is not a temporary subsidy, the platform has included zero fees in its protocol. in addition, the network takes about 0.14 seconds to confirm a transaction.
low power consumption
nano platform has developed its own algorithm to validate transactions that is based on a voting system instead of heavy equipment and energy.
intuitive user interface
natrium is the official wallet of the nano ecosystem. Users can download it via iOS and Android play store to exchange nano coins seamlessly. the wallet comes with user-friendly features that are easy for beginners to use.
fully decentralized:
The network has achieved decentralization by fair distribution of the total supply of nano coins. you can consult the list of representatives of the platform. it’s clear from the list that no group has more than 50% of the voting power, showing that nano’s voting system cannot be tampered with.
developer friendly:
See also: This country adopts Bitcoin as legal currency. Details here | Mint
nano is open source, attracting talent from around the world to lend their skills to building the ecosystem. More than being open and free to use, its development infrastructure and lightweight protocol are also attractive to developers.
nano disadvantages
smart contracts cannot be supported
One of nano’s biggest drawbacks is its inability to support smart contracts. furthermore, the team has no plans to implement them anytime soon, which is the biggest drawback for innovators and developers looking to create dapps.
lack of public relations and marketing
The second drawback is little or no marketing. The team relies on enthusiasts to spread the word about Nano. Because it has little to no advertising and marketing, nano has very low adoption, despite being released nearly seven years ago.
privacy concerns
Finally, the coin has no built-in privacy. Cryptocurrencies like nano, with low fees and high tps, are easy to send, however they should offer more privacy in these transactions.
final thoughts
To achieve mass adoption of crypto, projects must ensure scalability and offer near-zero fees. Bitcoin’s high network fee and slow transaction time is one of the reasons why BTC has yet to become a widespread currency used for payments. nano, on the other hand, is ahead of the race because it facilitates fast transactions without fees. however, it is not as popular as bitcoin and therefore has a lower adoption rate. therefore, if it grows in popularity and is successfully marketed by the nano team, it has all the attributes to become “the currency of the people”.
See also: Bitcoins Impacts on Climate and the Environment – Climate Week NYC
