Bitcoin has shaken the global financial system to its foundations. When it entered the mainstream market in 2009, we began to see an increasing shift from government-backed fiat to modern cryptographic payment systems that operate securely and reliably.
So why isn’t Bitcoin an everyday currency?
Bitcoin’s scalability is limited by the high cost of the network and higher transaction latency. However, the biggest challenge is using a proof-of-work (PoW) consensus mechanism based on miners using high-power devices to confirm transactions. Bitcoin mining consumes the environment.
What is Nano crypto?
Nano is a fast and energy-efficient digital currency designed to enable near-instant money transfers smoothly, securely and reliably without fees. The software aims to provide an inflation-proof decentralized peer-to-peer currency that can be sent, used or accepted anywhere in the world in a very convenient way.
Unlike Bitcoin, Nano does not need to be mined or printed, making it a value-oriented and sustainable form of payment. The unique design deviates from traditional blockchain technology and uses a blockchain architecture that ensures fast and convenient transactions.
Colin LeMahieu, a software engineer, founded the nano coin in 2014 under the name Rai Blocks, with the ticker XRB. However, the project was renamed Nano (NANO) in 2018 and the token changed from NANO to XNO in 2021. As the native currency of the Nano ecosystem, XNO is used as a medium of exchange and facilitates various network functions.
Unlike most tokens created at the time, Nano did not have an Initial Coin Offering (ICO). Instead, it used a system called Nano Faucet to distribute its coins. Like the airdrop, the Faucet system allowed anyone to complete CAPTCHA tests and receive free nano coins.
Because Faucet required no upfront financial investment, the Nano project was able to reach people in emerging economies in line with its mission to solve global problems in the real world. Between 2015 and 2017, a total of 133,248,297 nano coins were distributed through this system. The maximum amount of nano crypto is capped and set at 133,348,297 coins, and unallocated coins are burned.
How Nano Crypto works
To differentiate itself from Bitcoin, Nano is designed with a focus on scalability, financial inclusion, energy efficiency, and decentralization with a Nakamoto factor of 11. To achieve this, the Nano blockchain implements advanced protocol design interaction unique and node implementation. The aspects of Nano’s operation are as follows.
Open Representative Voting (ORV)
To reach consensus, Nano uses a system called Open Representative Voting (ORV), a variant of the DPoS algorithm. As an early adopter of the directed acyclic graph (DAG) design, Nano moved away from the typical blockchain form to improve security and improve system performance.
With ORV, Nano holders choose representative nodes to vote on each transaction. All nodes in the network can independently link transactions based on quorum, which is achieved by delegating the vote. The weight of the vote assigned to each Nano delegate depends on the balance of their XNO account.
Since ORV allows transactions to be processed individually, finality is reached quickly, usually in less than a second, which is much faster than Bitcoin. ORV Consensus does not require the energy-intensive mining of coins required in traditional PoW blockchains.
Block grid structure
The nanogrid uses a unique data structure known as a block grid. Using this architecture, each account runs on its own blockchain, known as an account chain. The account holder, independently of the others, can update any account chain directly in the blockchain, making the transaction lightning fast.
In a regular blockchain, like Bitcoin, each block of transaction data is linked to the next, delaying confirmation of transactions as it cycles through transaction processing so it can be added to the ledger.
In the block grid design, all event information is grouped into a single space block and the blocks can be processed simultaneously in parallel. Account holders can also change their account chains without impacting the entire network. To authorize the lockout, the digital signature must be matched with the account holder’s private keys.
What are the applications of Nano Crypto?
Nano-crypto is designed to provide real-world utility such as an easy-to-use, near-instant payment system. As such, it acts more like a currency than a speculative asset. Its eco-friendly and sustainable design gives it versatile uses in the wider global economy, as detailed below.
Since Nano is instant and has no transaction fees, it is a great alternative to fiat currencies. Powered by blockchain technology, Nano is decentralized, private, secure, transparent and free from government restrictions. The fixed supply makes it non-inflationary, making it stable and fair.
Traditional bank transfers are time-consuming and expensive. Even worse are the irregular exchange rates which can sometimes make a dent in the amount sent or received.
However, cryptocurrencies like Nano have made global money transfers faster and cheaper. With Nano you have no hidden fees or manipulated exchange rates and you can rest assured that 100% of the value will be received by the other party.
Every trader wants to keep costs as low as possible because most companies trade on small margins. Using Nano, merchants can avoid credit card processing fees that often eat into their bottom line.
Nano-crypto payment gateways like NOWPayments and Nault are cheaper than traditional payment platforms. By integrating Nano payments, merchants can receive money anywhere in the world.
As a conscientious payment system, Nano is ideal for processing microtransactions. For example, Nano allows you to make micropayments like Streamer drops on Twitch. You can also use Nano Tip Bot to suggest content you like on Twitter or Telegram, or even use KarmaCall to block spam calls. Due to the high cost, such small transactions are cost effective when using standard payment processors.
Store of value
Since excess XNO coins cannot be mined or minted, Nano also serves as a safe and inflation-promoting store of value. Central banks can increase the supply of traditional currencies and thereby devalue them.
However, holding Nano protects you from inflation and government intervention. You can store your Nano in wallets such as Nautilus Wallet, GoNano, Exodus, Guarda and Atomic Wallet.