Nano is a cryptocurrency that has been present for a couple of years. It was in circulation by the name of Railblocks, and the only thing that has changed since then is the branding of the cryptocurrency. You still use the same XRB tokens, and the network is still the same. Nano has always looked to provide a cryptocurrency that is not plagued by the issues of Bitcoin and can replace fiat as well. This is done by providing a system free from transaction fee, quick transactions, and decentralization of power.
How Nano works
Nano is a blockchain cryptocurrency that allows users to make transactions quickly. It competes very well with Bitcoin and other popular cryptocurrencies because its blueprint keeps it safe from the problems its competitors face, like centralization of power, high energy requirements, high transaction latencies, etc.
Like IOTA, Nano uses its own block-lattice technique instead of the typical blockchain network which Bitcoin and most other coins use. Block-lattice works similar to IOTA’s Tangle, but there are some differences. In Nano’s block-lattice, each user account has a blockchain. These blockchains are responsible for maintaining the ledgers of user accounts, while the main blockchain only holds a record of these ledgers. This not only takes away the high storage requirement of the blockchain ledgers as is the case with Bitcoin but also improves transaction times.
With block-lattice, the sender sends XRB tokens and signs his or her block. The latest block in his or her blockchain has a record of the account balance. The sender signs the new block and then waits for the receiver to do the same. The receiver signs the block on receiving the funds, and his blockchain is updated with the new balance. Since the funds are sent in UDP packets, both parties don’t need to be online at the same time, and thousands of transactions can happen simultaneously. The fact that only account balances and not the entire transaction history is recorded also improves the load on the blockchain for storage. There is no requirement of miners since the users verify the transactions themselves. In case of conflicts, nodes with voting rights – a result of using Delegated Proof of Stake – resolve the transaction.
Pros and Cons
- No transaction fees and no need for miners
- Lesser energy requirements and better transaction times
- Uses DAG and DPoS to provide for a truly decentralized cryptocurrency
- A mobile wallet is something that not all cryptocurrencies offer
- Is not available on a lot of exchanges, only a few
- The technology is new and relatively untested
- No other utility other than being a currency, which puts it in competition with a lot of other similar projects
Although Nano has been around for more than two years, there are only three exchanges that provide it. You can buy Nano from BitGrail, Mercatox, and Bitflip. BitGrail was set up for the express purpose of trading XRB tokens and accounts for 78% of the total trading in the cryptocurrency. Nano is looking to increase the number of exchanges that circulate it, but as of now, there are only these options.
Nano had a low presence in the market before the turn of the year. But with a mobile wallet and hardware wallet, their price has surged from $3 to $15.16. The daily volume of trading is around $100 million while the total market cap is in the region of $2 billion. If you want to store your XRB tokens away from the exchanges (we recommend doing this), then you can use Nano’s web wallet, the official desktop wallet, and the Telegram bot called RaiWalletBot which will manage your private keys for you.
Nano is a new name of the Railblocks cryptocurrency which first appeared in December 2015. It doesn’t offer a lot of functionalities other than being a cryptocurrency, but it focuses on being the best and most efficient cryptocurrency in the market. With no transaction fee, quick transactions, no centralization of power since there’s no need for mining, and an energy-friendly network, Nano is a cryptocurrency that has some promise. The only problem is that the technology is new, and those in the world of cryptography usually feel good technology takes years of testing to be considered robust.