Do you know Nano?
Continuing with the series of analysis on some cryptocurrency projects that are at the forefront of cryptocurrency, today's analysis revolves around one of the most striking, I am referring to Nano, which is developed as a digital currency where transactions do not generate commissions in addition to being carried out instantly.
Nano began its trajectory in 2014 by the hand of its creator Colin LeMahieu, who developed this project thinking of a way to solve the problems of low scalability, high commissions and the speed of transactions that characterize Bitcoin (BTC).
Considering the shortcomings of the main cryptocurrency, LeMahieu started the project under the name RaiBlocks (XRB), with which he took as a test to test the Directed Acyclic Graph (DAG) technology, which was developed to establish a system of operation totally different from the typical blockchain. Under this new proposal, it was preferred to establish its operation under the Distributed Proof of Stake (DPoS) system, leaving aside the Proof of Stake (PoS) protocol, since its developers consider that this way a better performance in its function as a decentralized mechanism is established.
Under the DAG technology, LeMahieu uses a new transaction and account control platform called block-lattice, which becomes the core of this project and the beginning of what it can be capable of. After several trials, in 2015 he presents to the world the White Paper of his cryptocurrency, this time under the name Nano.
As mentioned in the previous paragraph, Nano uses the DPoS protocol, under this technology it seeks to offer users a more optimal scalability compared to what is established by the so-called Proof of Work (PoW), the same used by BTC and most of the cryptocurrencies. The platform also affirms its intention to improve transaction speed by reducing confirmation times, in addition to managing all its procedures using little power consumption.
Despite touting its interest in offering a decentralized medium to the cryptosphere, its DPoS protocol has not managed to establish an operation far from centralization, which has earned Nano a lot of criticism. Its 380 nodes are not always available 24 hours a day, 7 days a week, a situation that encourages centralization in the network, which is why this project has earned many detractors due to doubts about the security of the platform against possible attacks, a situation that occurs frequently, which is why its developers focus their efforts to protect their platform.
As for the DAG technology, which is shown as a structure similar to a blockchain, it allows some freedoms of development, based on its flexibility in formation and operation, in this way the nodes that work in DAG can issue and fully validate the transactions that are generated in the system, thus, it gives way for the network to assume the analysis and confirmation of the same. In this way, any user executing a node is able to offer a transaction and confirm it simultaneously with the rest of the network.
On the other hand, Nano offers a technology called Block-lattice, in charge of reducing latency and increasing speed, which reduces costs to near-zero levels in its transactions. In other words, each node has the ability to store its own distributed ledger and maintain full control of its account. The data is then integrated into the network's DAG, which will be responsible for the distributed consensus across the entire platform.
This technology proposed by Nano is classified by its developers as 'low power consumption' because it reduces the energy overload on the network, allowing its ledger to reduce its size as the operations are distributed throughout the platform, which means that it only occupies about 70 GB compared to the 300Gb occupied by BTC. Nano maintains a fixed issue of 133,247,751.3143379 units which are not minable, the total number of cryptos inside the individual ledgers controlled by each node will never exceed the total number of Nanos inside the main network ledger.
On the other hand Nano possesses a unique quality among cryptocurrency projects and that is the fact that transactions made on its platform do not generate commissions largely due to the absence of miners and the fact that most of the tokens are already in circulation. Therefore, the nodes operating in the network do not receive any reward for their work, so they are largely dependent on the upward variation of the price of this digital currency. At some point its maximum price reached $30,
On the other hand Nano has a unique quality among cryptocurrency projects and that is the fact that the transactions made on its platform do not generate commissions largely due to the absence of miners and the fact that most of the tokens are already in circulation. Therefore, the nodes operating in the network do not receive any reward for their work, so they are largely dependent on the upward variation of the price of this digital currency. At some point its maximum price reached $30, as of today it is $6. Due to the absence of commissions, the incentive for the service of the nodes is null, therefore it does not stimulate the active participation of these in the whole system, hence the high centralization.
The Nano Foundation is in charge of directing everything related to this project, acting as a non-profit foundation whose objective is to stimulate Nano's development and grow its community. LeMahieu himself heads the leadership of this foundation together with a team with a well-known trajectory in the cryptocurrency world.
It is necessary to consider that the publication presented here does not represent under any circumstances any form of investment advice or recommendation, it is only for informational purposes to the people of the community interested in expanding their knowledge in reference to the Mano project. Please, take your own precautions when investing in this or any other project.
