Introduction to Nano. How it works?

Introduction

Nano is a cryptocurrency created by Colin LeMahieu in 2015, designed for fast, feeless, and energy-efficient transactions. Nano's unique architecture solves a few of the big problems experienced by other cryptocurrencies, such as a long transaction confirmation time, high fees, and high power consumption associated with network security. Thanks to innovative Block Lattice architecture, Nano allows lightning-fast and scalable transactions without fees, making it an ideal cryptocurrency for everyday payments both for individual users and companies.

Traditional Blockchain vs Block Lattice

Block Lattice architecture is very different from traditional linear blockchains. In the traditional blockchain, transactions are grouped into blocks and added to one global chain. Every transaction in the block is waiting for its confirmation by a miner, which often results in a high delay, especially in periods of high network load. Such a model beyond impacts the transaction confirmation time but also involves high transaction fees because miners take fees for transaction processing.

Block Lattice works differently. Every wallet has its blockchain, so transactions are confirmed asynchronously. Every transaction is represented as a small block that is processed independently. As a result, funds are sent almost instantly. It makes Nano one of the fastest cryptocurrencies available on the market. Nano works without miners that removes the long waiting time for transaction confirmation and decreases transaction costs to zero.

The next major difference is the consensus mechanism. In traditional blockchains, consensus is mainly reached by Proof of Work (PoW) which requires a lot of energy and computing resources. Of course, there are many other consensuses available on the market that are greener such as Proof of Stake (PoS), Proof of History (PoH), and Proof of Space and Time (PoST). Nano, on the other hand, uses its original consensus Open Representative Voting (ORV), which means that every wallet has a representative who votes on its behalf. In the case of transactions, when more than 67% of the vote weight (quorum) is reached by Principal Representatives (PR), it's approved and considered final. It drastically reduces network load and energy consumption making Nano a greener cryptocurrency versus other cryptocurrencies.

The last important point is how the network is secured. We know very well how important it is to protect our funds. Consensus mechanisms protect traditional linear blockchains. Due to its linear characteristics, transaction costs, and transaction processing time, it's hard to spam the network and execute DDoS attacks. On the other hand, Block Lattice allows instant and free transactions which makes it more vulnerable to spam and DDoS attacks. Nano has already survived two DDoS attacks in its history! Currently, Block Lattice is adequately protected and new security features are continuously being introduced with each update. Sending the transaction requires adding a small PoW so it needs additional computing resources to execute the attack. Currently, a prioritization system based on even distribution of resources (round-robin) and Least-Recently-Used (LRU) is applied that help with managing network load. The key security feature is buckets in which transactions are classified and processed depending on wallet balance. Thanks to this, even if someone tries to flood the network with many low-balance transactions, their impact on the network will be very limited because higher-balance transactions will be processed first. Currently, Nano is correctly protected against attacks and provides a strong security.

Benefits of Nano in daily life

Nano is a cryptocurrency that perfectly works well for everyday transactions and can successfully replace traditional forms of payment. It's a few benefits that make Nano the perfect solution for everyday use:

Fast and feeless transactions

As I mentioned, Nano allows fast and feeless transactions without borders. Users can freely send funds to themselves regardless of which country they are in, without having to worry about additional fees or waiting time for the transaction. It makes Nano a better solution than traditional payment forms that involve fees.

Microtransactions

Thanks to Nano's fast and feeless transactions, ideally suited for microtransactions. It can be used to comfortably pay for digital content, send tips, or make small purchases. It allows modern business models that were difficult to realize earlier, because of high transaction costs and required the use of intermediary services.

Easy integration with apps

Nano can be easily integrated with different apps and sites which allows using of this cryptocurrency in a wide range from e-commerce to social network platforms with the possibility of tips. It opens a many new opportunities, especially for merchants and content creators who can accept payments in Nano without complications and, most importantly, without fees!

Alternative for cash

Nano as a digital currency can become a great alternative to cash. Users can use Nano to make payments in stationary stores. You no longer have to look for change or ask the cashier to give you change, just pull out your phone, scan the QR code, and be done! Using the Nano as cash can contribute to a wide adoption of cryptocurrencies.

Privacy

Nano isn't as private as Monero but provides more privacy than other cashless payment methods, which can be very important for those who care about one's privacy.

Future of Nano

As a fast and feeless digital currency, Nano aspires to be a global payment method that is suitable for daily transactions and more advanced uses. Nano has a high potential to replace traditional payment methods that bind with the cost of fees. Many companies and platforms could use Nano as an effective payment method.

Nano is well-adjusted for uses related to microtransactions, online tips, or support charities. Thanks to its innovative architecture that allows fast and feeless funds sending, Nano can be easily accepted by mobile apps, online games, and crowdfunding platforms. Its technology also offers a chance for integration with different IoT devices.

There is no way to predict Nano's future and how the project will develop. However, we know that Nano has many uses in many fields of our lives and integrates easily with different apps, sites, and IoT devices. The cryptocurrency sector is dynamic and subject to diverse changes in technology and law. Nevertheless, Nano is a project with big ambitions that can rise in importance in the upcoming years. If adoption rises, Nano has a chance to be one of the lead payment methods in the digital economy of the future! Therefore, I encourage you to try it because it doesn't cost you anything, and you may like it and start actively using it.