Nano (XNO) - A Closer Look at Feeless CryptocurrencyAug 18, 2023
Nano, formerly known as RaiBlocks or XRB, has introduced a cryptocurrency that aims to revolutionize transactions. This digital currency was designed to provide decentralized transactions without any fees. Colin LeMahieu, a software engineer who previously worked at known tech companies such, as Dell, AMD and Qualcomm founded the project in 2014. The development of Nano took years before its public release in 2015.
What sets Nano apart from cryptocurrencies is its block lattice data structure and consensus mechanism. Unlike Proof-of-Work (PoW) or Proof-of-Stake (PoS) algorithms that consume amounts of energy Nano employs Open Representative Voting (ORV) for achieving consensus. As a result it is incredibly energy efficient and only requires a fraction of the computing power compared to cryptocurrencies.
In 2018 the cryptocurrency underwent a rebranding as Nano with a ticker symbol (XNO) and logo (Ӿ). This rebranding aimed to reflect its renewed focus on being an user friendly currency. Since then Nano has gained popularity among investors and traders due to its speed, robust security measures and minimal transaction costs.
Nowadays it is widely acknowledged as one of the promising cryptocurrencies available with a bright future ahead.
Block Lattice Structure
Nanos technology is specifically designed to meet the needs of day transactions. Unlike systems Nano adopts a block lattice structure. In this approach each block contains transactions that can be processed simultaneously by distributed chain accounts.
As a result Nano offers more scalable transaction processing compared to blockchain technology. This makes Nanos block lattice structure highly suitable for transactions.
Directed Acyclic Graph (DAG) Consensus
Nanos DAG (Directed Acyclic Graph) Network offers an innovative approach to distributed ledger technology. Unlike blockchains, where users share a consensus, on a blockchain each user in Nano controls their own individual blockchain, which includes their account balance and transactions. This decentralized structure enables swift transaction processing times with fees making it an appealing choice for transactions compared to other cryptocurrencies.
In Nano every transaction necessitates two blocks; one from the sender and one from the recipient. These blocks contain user generated Proof-of-Work ensuring that each transaction requires effort to prevent any malicious exploitation of the system.
As of March 2021 the network boasted over 100 representatives with a total of 13 million NANO delegated. This showcases the decentralization through the DAG network structure, where no single entity holds control over the entire network.
With its emphasis on user control and democratic consensus Nanos DAG Network presents a prospect for an era in cryptocurrency and blockchain technology. Its rapid transaction processing times, fees and decentralized nature set it apart as an innovative solution, within the field.
Nano's Open Representative Voting (ORV)
Nano's unique consensus mechanism of Open Representative Voting (ORV) stands out from traditional blockchain consensus methods. It is a fast and efficient system that enables users to delegate their voting weight to Representatives, allowing for quick transaction confirmations and increased control over network decentralization.
With ORV, any account can select a Representative to vote on its behalf, even when offline. This allows for voting weight to be distributed throughout the network, without the need for heavy computing power or energy consumption. Representative accounts are online nodes that vote on transaction validity, contributing to consensus by rebroadcasting principal Representatives' votes. As a result, Nano's lightweight blocks and votes enable ultrafast transaction confirmations, often within seconds.
Unlike other consensus methods, ORV does not lock up funds when delegating voting weight. Users can spend their funds freely while maintaining control over their delegated votes. Moreover, ORV design avoids centralization tendencies, promoting network decentralization. Principal Representatives with sufficient voting weight emerge from delegated balances, allowing for more democratic and decentralized decision-making processes.
Energy-Efficient and Eco-Friendly
One notable advantage of the Nano system is its energy efficiency and eco friendliness. Unlike transaction systems that impose fees for each transaction Nano operates on a feeless model. This eliminates the need for energy consuming miner validation processes commonly seen in systems. As a result Nano effectively competes with credit card processors while simultaneously reducing carbon footprints and promoting eco friendliness.
Feeless Blockchain for Micro Payments
Nano feeless system opens up opportunities for micro payments in domains such as shopping, gaming and digital content consumption.
With fees or no fees all customers can easily transact smaller amounts without worrying about excessive transaction costs. This affordability factor not encourages adoption but also positions Nano as the preferred mode of payment, on e-commerce platforms.
Nano technology has brought about a change in the transaction system. Its energy efficient and eco friendly feeless system has made it a frontrunner for the future of transactions. With features like Nano Direct Acyclic Graph (DAG) consensus and Open Representative Voting (ORV) it offers decentralized transaction services that're also energy efficient. The Block Lattice Structure of Nano makes it an excellent choice for transactions providing scalability and high transaction capacity. The absence of fees makes it particularly attractive for micro transactions. All Nano is an ideal cryptocurrency that excels in energy efficiency, sustainability, quick confirmations, scalability and security, for digital transactions.