Review of the Nano uncommissioned cryptocurrency
While Bitcoin and other cryptocurrencies use the Proof-of-Work algorithm, many consider it to be extremely energy-efficient. But as complexity grows, so does the demand for aggregate computing power. For example, a bitcoin network consumes about 27.28 billion kWh per year.
In turn, an alternative to it is the Proof-of-Stake algorithm. It does not require constant competition between miners in computing power. All that is needed is software and storing a certain amount of cryptocurrency on the account.
However, some cryptocurrencies went further, starting to use the so-called Directional Acyclic Graph (DAG), which broke the usual form of blockchain, increasing productivity and increasing security. One of them is RaiBlocks or Nano. In this article, we will talk in detail about this project, and also talk about all the pros and cons of the system used in it.
What is cryptocurrency Nano
The RaiBlocks project began to be developed in 2014, and at the end of January 2018, the company rebranded and received the name Nano, as well as a cryptocurrency with the same name.
The main goal of the team is to create an affordable cryptocurrency oriented to the widespread use as a means of payment. At the same time, Nano cryptocurrency relies on the scalability and bandwidth of its network.
The WhitePaper of the project directly indicates the drawback of most cryptocurrencies, namely, scaling, citing Bitcoin as an example. The increasing load leads to higher fees for transfers and an increase in transaction confirmation time, which is bad for the network itself.
The Nano team claims that their cryptocurrency is the first to use the Directional Acyclic Graph (DAG). But coins like IOTA, DagCoin / Byteball, just followed suit. At the same time, the Nano cryptocurrency reaches consensus through a balanced vote on conflict transactions.
The main feature of this cryptocurrency is the exclusion of the use of smart contracts and any decentralized applications. To achieve a certain “standard” of digital money, the Nano concept consists of three points: speed of transactions, scalability of the network and the exclusion of transfer fees.
The solution to the problem of scaling
To solve this problem, the Nano team has introduced a completely new blockchain architecture using a lattice network structure. In it, each user, as it were, gets their own blockchain with their own balance and transaction history. Only the account owner can make changes. The user gets the opportunity to update his blockchain quickly and asynchronously to the rest of the blockchain.
For example, if the registry in the Bitcoin network is distributed, and the data is stored by all nodes at once, then Nano uses a partially distributed registry, since the data on the blockchain is stored on user accounts and each of them monitors it independently.
That is, the user only supports the performance of his account, and the transaction is visible on the recipient and sender blockchains as two separate blocks. This allows you to significantly increase the speed of operations, remove commissions and use the easy protocol, without the need to download a complete blockchain network.
Principle of operation
The Nano cryptocurrency architecture works on four components:
- Account It uses public and private digital signature keys. The first is transmitted to all network participants, and the second is known only to you. In this case, one person can have many accounts, but for each of them there will be only one public address.
- Transactions Network operations are carried out by transferring blocks. They are signed by the private key of the user performing the transaction.
- Ledger. Actually, this is the same blockchain that every user has and is part of the global Nano network.
- But yes. This is a piece of software running on a user’s computer. Depending on the type, it can store either the entire Ledger, or only a part of it, containing the last few blocks of each account.
It is important to know that each transaction in the Nano network consists of two operations – debiting from one account, and crediting to another. In turn, the algorithm performs two checks of the balance state – before the transaction and after it.
Where to buy and which wallets to store
Cryptocurrency Nano is traded on the most popular exchanges. The most famous of them: Binance, Kucoin, Huobi, HitBTC, OKEx, Mercatox and others. The main trading pairs are NANO / BTC, NANO / ETH, NANO / USDT.
The coin storage project team recommends three options for Nano wallets:
- Create an online wallet. This is a lightweight client called Nano Web Wallet. Through it, you can manage your personal funds without downloading Ledger.
- Mobile app. On the official website you can download the program for Android and iOS.
- The program for the PC. A desktop wallet installed on a personal computer. It is the most reliable Nano storage. This option assumes full Ledger synchronization.
To create any of these wallets, follow this link. In general, the process is quite simple and straightforward. Let’s analyze the creation of a wallet on the Web version.
- We go to the site.
- In the window that opens, select one of the three wallets: nanovault.io, nanowallet.io and vault.mynano.ninja.
- We are going through registration.
- Be sure to write down the private key, since it is the only way to get access to all accounts and money inside them.
- That’s it, now you have a lightweight Nano wallet.
To create a wallet on a personal computer with a full load of Ledger, use the same link, and in the right part select one of the proposed options. For example, we chose nanowalletcompany.com.
Install Nano Wallet
- Download the wallet for your operating system.
- We are waiting for the data to load.
- Click ‘Create a new wallet.’
- Copy Seed.
- Create a password.
- Done, the wallet is created.
Is it worth investing
At the peak of its course in January 2018, many prophesied the Nano cryptocurrency further rise. However, it did not happen, and the price fell from $ 37 to $ 2 and stayed around this level all year.
This market situation has led to restraint of investors. Despite the fact that the project is considered one of the most promising and technological, investors for some reason are in no hurry to invest in it.
It is likely that BitGrail exchange hacked on the mood of users, as a result of which 17 million NANO were stolen. Although the developers were not guilty of what happened, one of the depositors filed a lawsuit against Nano, saying that they showed negligence by placing a token on the ill-fated exchange.
Prospects for Nano cryptocurrency
Despite the fact that the project originates in 2014, Nano cryptocurrency appeared on the market only in the spring of 2017. This is a young project, but with pretty good development potential.
Nano has its own community that believes in prospects, because this cryptocurrency solves one of the main problems – transaction speed at high loads. Now the Nano blockchain is capable of processing 7 thousand transactions per second.
One of the problems that the project could potentially have is the concentration of significant capital among several large players. Since the emission of Nano is limited, and mining does not exist, “whales”, having gained enough coins, can influence the development of the project.
After the developers released all the tokens on the market, they announced that they would now be engaged in marketing and all kinds of promotion of the Nano cryptocurrency. In fact, most news is related to listing on not-so-popular exchanges.
Today, the main competitor is the IOTA cryptocurrency, which also works using DAG and allows you to conduct several thousand transactions per second. And the only way out for Nano is to integrate into the real sector of the economy and popularize its coin as a means of payment. But while there are practically no tangible movements in this direction.
One of the most positive news in recent years is the addition of Nano to Wirex, a popular UK online banking platform. Using a Wirex Visa card, you can make payments in 40 million places worldwide.
The project provides excellent technological solutions, but runs the risk of remaining unknown due to the lack of PR campaigns and the competent work of marketers. If you do not make yourself public, you can be left without a significant market share, and this slows down development.