A digital currency called Nano (XNO), which has been around since the early days of the cryptocurrency industry in 2014, aims to succeed where bitcoin has failed by being built on the tenets of real decentralisation, sustainability, and efficiency.
Bitcoin has diverged significantly from its original function as a trading money, despite still being a reliable store of value. This has been made possible by the eye-wateringly high power consumption required to produce new currencies, slow transaction speeds, high transaction fees, inefficient networks, and high transaction costs.
Nano saw this as a market opportunity. A genuine transfer of wealth, which is what cryptocurrencies are supposed to be about, can be found in Nano’s ecosystem thanks to the deployment of its distinctive “directed acyclic graph” (DAG) protocol and “open representative voting” validation technique (ORV).
Is Nano living up to its goals after announcing its new ticker symbol, “”? Describe Nano (XNO). How does Nano (XNO) get past the problems that other digital currencies have? How does Nano function? And what is the purpose of the Nano coin?
What is the directed acyclic graph (DAG) protocol?
Numerous blockchain services use DAG, a type of “blockchain lattice” ledger design; nevertheless, Nano may be one of the most popular examples.
By using DAG, Nano is able to avoid the necessity for labor-intensive mining or staking operations, which are the main causes of the reputation of blockchain as an energy-guzzler.
To accomplish this, DAG effectively transfers control of the blockchain to each user rather than to a huge mining machine or mining pool. In other words, DAG is a collection of non-shared asynchronous ledgers as opposed to a shared global ledger.
Each Nano user is in charge of its own blockchain operations and energy consumption, unlike Bitcoin miners, who get caught up in a race to outperform one another.
All of this is done to keep Nano light, which minimises transaction times and increases energy efficiency.
What is open representative voting (ORV)?
The widely-used Proof-of-Work (PoW) method used by Bitcoin and the Proof-of-Stake (PoS) approach adopted by many other cryptocurrencies are very different from the open representative voting (ORV) validation method used by Nano.
The primary goal of ORV’s architecture is to realise Nano’s ultra-rapid transaction speeds.
To do this, ‘primary representatives’ (PRs), who possess voting authority from token holders, validate transactions. There are some obvious distinctions even though this may sound comparable to current PoS techniques.
The fact that validators are not compensated financially is crucial because it makes Nano less vulnerable to “emergent centralization,” in which voting power becomes more and more concentrated as fewer and fewer validators experience economies of scale. This is a significant issue in regard to cryptocurrencies.
Simply put, this adheres to the decentralisation idea of blockchain by creating a more evenly distributed blockchain validation network.
Why do PRs waste time and effort if there are no rewards for certifying the blockchain? There are some real exterior benefits even when there are no inside rewards.
While companies and services are free to take advantage of the network’s features without operating a node, Nano claims that those who prefer to act as representatives can communicate with the network directly and independently.
In essence, it makes sense for any organisation that wants to see Nano prosper as a product to provide some funds to its ongoing operations. Therefore, exchanges, payment processors, wallet developers, and other companies having an interest in Nano tend to be the majority of PRs. PRs also benefit from increased access to the Nano network for software development and exposure to advertising.
16,059,644 XNO coins have been allocated to the most potent PR as of right now, making up 12.05% of the overall voting power. The largest validator on the Ethereum network, in contrast, controls 28.8% of the total voting power.
Compared to Ethereum’s second-largest validator, who has 18.5% votes, the second-largest Nano PR has 4.6% of the vote. These numbers are encouraging for Nano’s claims of decentralisation.
Becoming a Nano Principle Representative
Are you thinking about becoming a PR to support the validation and protection of the Nano ecosystem? Here are several important considerations.
To become a PR, a node must have a minimum of 0.1% voting weight (or 0.1% of all circulating tokens) delegated to them. There would be a delegation of 133,248 XNO coins ($522,300 at the current price) with a circulating supply of 133,248,297.20.
The necessary processing capacity is negligible. Nano’s blockchain is so light that it can be run on a typical current home PC. One bottleneck should be taken into account, though. A minimum of 500Mbps is needed, which is much faster than the 12 to 25Mbps average broadband speed in the US.
In actuality, even with a vote weight of less than 0.1%, anyone can become a validator. But you won’t gain PR status and start earning prizes until you reach that critical mass.
Delegated funds are not subject to a lock-up period, as is the case with the staking technique, which is another important aspect of ORV. Users may transfer funds between PRs or withdraw delegated monies from any PR at any time. This is most likely intended to deter dishonest individuals.
Assessing block speeds
According to Nanocrawler, there are currently 87 PRs on the Nano network, which, when compared to some rivals, achieve an average block confirmation time of 0.61 seconds.
Bitcoin, in contrast, is known to take longer than 10 minutes. Dash and Litecoin both float around the 2.6-minute mark. While Nano’s performance is still nothing to sneeze at and compares favourably to many other competitors, Ethereum manages block speeds as low as 0.22 seconds. (Bitinfocharts.com is where the data came from)
A few Nano tokenomics
The value of XNO as of December 9th, 2021, is $3.86. XNO has a market capitalization of $536.9 million and is number 141 in the cryptocurrency charts as a result of being fully diluted, which means that the entire 133,248,297 maximum supply is now in use.
The most recent trading volume, or 0.06% of market capitalization, was $32.03m.
Instead of distributing XNO through an initial coin offering (ICO), Nano chose to use a cutting-edge crypto faucet mechanism. Before the taps were shut down in 2017, people could solve challenging CAPTCHA puzzles for money, rewarding time and effort rather than mining power.
Nano said that because of the benefits provided by these faucets, “Nano communities” began to flourish in underdeveloped nations.
Even if not all intended coins were delivered during the course of the faucet, the leftover quantity was destroyed, which promoted deflation. On that topic, Nano may face one problem in the future. This will lessen the amount of currency in circulation as it gains wider acceptance among merchants, who will likely subsequently transfer their holdings to fiat.
Although favourable in terms of inflation, prospective investors might want to keep an eye on Nano’s token-drop schedule.
Recall that Nano is a cost-free system. Coins are not mined nor distributed to nodes. Nano therefore stands for a genuine exchange of value. A sent XNO is equal to a received XNO.
The Nano Foundation keeps seven million XNO as a resource pool for the founders.
Our nano price prediction has more recent information on nano cryptocurrencies.
Where next for Nano?
The “ledger-pruning” procedure, which aims to further lighten the ecosystem, is being used by Nano’s developers to optimise the DAG system.
With the introduction of the new currency symbol and a redesigned website, it appears that Nano will level up its virtual currency in 2022.
Who created Nano?
Colin LeMahieu, a software developer, launched Nano in 2014. It was formerly known as RaiBlocks before changing its name in 2018. Formerly situated in Texas, LeMahieu currently does business from London. Before launching his passion project for decentralised currency, he had previously worked as a software developer for AMD, Dell, and Qualcomm.
Who owns Nano?
The Nano Foundation’s director is Colin LeMahieu.
Is Nano secure?
A bug update was required for Nano after a denial of service (DoS) assault in March 2021.
The main risk for DAG systems is sybil attacks, in which an attacker tries to influence voting through a large number of fictitious identities. However, according to Nano’s white paper, “adding more nodes to the network will not provide an attacker additional votes because the voting algorithm is weighted depending on account balance. Consequently, there is nothing to be gained via a Sybil attack.
There have been questions raised about how much security is sacrificed by Nano’s zero-fee feature. To examine this, though, further merchant adoption will be required.
Is Nano legit?
The Nano Foundation is in charge of the legality of Nano as a digital money. In addition, founder LeMahieu purposefully avoided the ICO (Initial Coin Offering) process due to worries about securities regulation.
What makes Nano unique?
Nano is a digital currency with quick block times, no transaction fees, and a real exchange of value. Additionally, the validation network is energy-efficient because it doesn’t use mining or staking techniques.