Nano (NANO): Consequently, with an increasing number of tokens, investors, startups and exchange platforms; issues such scalability become apparent. Transaction activities keep rising and this is constantly straining the blockchain systems. However, some projects such as Nano (NANO) and a few others have dedicated their time and resources to solve the biggest issue in the industry; scalability.
Nano is a project that was previously known as RaiBlocks. It changed the brand name in January 2018, however, the mission, vision and the core principles of the projects did not change. The team behind this project intends to build Nano to achieve what Bitcoin (BTC) was unable to achieve and become not only efficient but also a viable option to traditional fiat.
The team realized the problems that major virtual currencies and particularly Bitcoin is facing. Issues such as scalability coupled with high transaction fees. In addition to that, Bitcoin takes long to settle transaction due to the high computational latency while its Proof-of-Work algorithm consumes approximately 27.28TWh every year. This translates to about 260KWh for a single transaction.
Nano, on the other hand, functions on blockchain and on the DAG structure. The network is able to support feeless transactions that are instant without compromising the trustless core principle of the blockchain technology. The Nano block-lattice architecture is the engine that makes the network function. It ensures that every Nano wallet is assigned a unique blockchain, otherwise referred to as account-chain. The process is complex but in simpler terms, the account-chains have been designed in such a way that they allow trust in the blockchain while only the latest of the account-chain is being verified. Coin Central explains that:
“One of the block-lattice’s more attractive features is how its ledger handles and stores transactions. Each Nano’s transaction is its own block, and each new block replaces the one before it on its user’s account chain. In order to maintain a proper account history, new blocks take a record of the account holder’s current balance and factor it into the processing transaction.”
Scalability on the Nano network is extremely high for the fact that only the latest chain-account is added. As a result, the transactions on the network are instantaneous and feeless. Significantly, the use of both DAG and the blockchain structures make Nano operate as a hybrid system harnessing the power of Proof-of-Work alongside the Proof-of-Stake. In this case, Proof-of-Work consensus algorithm is utilized in eliminating spamming.
On the other hand, Proof-of-Stake is incorporated to ensure that DAG structures are operating as expected by creating a representative system that validates transactions. These representatives are selected through a voting system by the holders of the Nano Token.
Nano (NANO) is trading at $2.49 at the time of writing. It is up 8.38% in the last 24 hours with a trading volume of $16 million. Nano is a $331 million project and is currently ranked 31st in the market.