NANO, anciently called Raiblocks, believes it can replace Bitcoin because it has advantages on multiple fronts where Bitcoin struggles. It is a highly scalable and efficient cryptocurrency.
The development team of NANO in their whitepaper explains many problems regarding Bitcoin’s usability as a currency. Here are some of them:
- Scalability problems bring high transaction fees for the users.
- High transaction time, an average of 164 minutes.
- Bitcoin’s proof of work consensus requires lots of energy, approximately 27.28TWh annually.
With its innovative structure, the transactions will be fee-less, instant and will be more energy efficient than bitcoin.
How the technology behind NANO Works ?
Nano utilizes a directed acyclic graph algorithm like IOTA, but it has its own technology called block-lattice. That technology is similar to the blockchain technology but with some important differences. Every account on NANO’s ecosystem has its own blockchain called an account-chain. The only person that can change his/her own chain is an account-chain’s user. It allows each account-chain to be updated independently of the rest of the blocks on the chain. Update blocks can be sent without depending on the entire network.
On Nano’s block-lattice, there are two conditions in order for transactions to be processed: A sender transaction and a receiver transaction. For the transaction to be authorized and completed, the receiver has to sign a block confirming the reception of the funds.
An interesting aspect of the block-lattice technology is the way it manages and stores transaction data. On the user’s account chain, since every transaction is its individual block, the new ones replace the old blocks and they record the current balance of the account owner and include it on the ledger. With this type of ledger, it is not necessary to record every older transactions because the network only stores account balances.
Benefits of a Block-Lattice Ecosystem
- Feeless and instant transactions
- Indepedence of NANO transactions from the principal ecosystem
- Decentralized network
- Lower electricity consumption
NANO (NANO) is currently ranked 22nd coin in market cap size . It had an incredible run from December to January. It is available for exchange on Binance.