What Is NANO Coin (RaiBlocks – XRB)? Is It Worth Investing in NANO?
Raiblocks has just been re-branded to Nano (NANO) recently. Just like NEO (formerly known as AntShare), the price of NANO has surged 41% in 24 hours after the rebranding. Some exchanges may be in the process of upgrading to show XRB as NANO. What exactly is NANO coin (XRB)? Is it worth investing? Read on to find out.
Disclaimer: This article should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
What Is NANO Coin (RaiBlocks – XRB)?
Nano is a digital currency for the real world. As many third generation blockchains focus on, Nano is infinitely scalable, but also works on making these payments seamless and easy to use.
Bitcoin scalability has always been an issue (slow transaction time). Comparing bitcoin with PayPal and Visa, PayPal manages 193 transactions per second and Visa manages 1667 transactions per second, whilst bitcoin only can handle 7 per second.
Nano proposes a new design architecture, DAG (Directed Acyclic Graph) based block-lattice architecture that offers instantaneous transaction times and unlimited scalability.
Unlike Bitcoin and Ethereum, Nano is not just one long blockchain but a database of blockchain where users get their own blockchain that only they can add onto.
Nano is part of a new generation of fast, feeless, minerless cryptocurrencies (FFM for short).
How Does Nano Work?
Users send funds by creating two blocks, where one send block on their personal blockchain and one receive block on the recipient’s blockchain.
Balances are transferred between blockchains through send and receive blocks. Send blocks reduce the balance of an account and marks the delta as receivable by an account number. At a later time, the receiving account creates a receive block which increases the balance of their account by the delta.
The person who receives funds has to sign a block and confirm the transaction. When just sender signed the transaction, it is not completed and it is marked as unresolved. Every transaction that is made is sent in UDP (User Datagram Protocol).
Just like IOTA, this UDP packet enables offline transfers, if the receiver is not online at the moment.
Nano’s network is ensured with a DPoS (delegated proof of stake) model. This kind of model has a lot of advantages than Bitcoin’s proof of work mechanism.
This process makes it prone to the same detrimental effects of centralization and even manipulation as can be seen with bitcoin or Ethereum where a small group of large mining pools controls the network.
Can I Mine Nano?
RaiBlocks is a “pre-mined” token. This means that their ledgers started out with a certain amount of cryptocurrency that can never change.
Nano is non-minable and has reached its maximum supply of 133,248,290 NANO. Fund was initially distributed via a captcha-faucet distribution system that ended in October 2017.
What Are The Differences Between Nano and IOTA?
The biggest advantage for the two projects is that they are the first ones, with very few copycat projects attempting a similar solution.
IOTA is currently focused on machine-to-machine (M2M) payments with a view to making the wallet more useable for Peer to Peer (P2P) transactions in the future. In contrast, Nano aims to ‘do one thing and do it well’ and they are focused on only Peer-to-Peer (P2P) transactions.
In IOTA, transactions get attached to the “tangle”, which is a directed-acyclic-graph (DAG) data structure. (Git works using this same data structure!) As more transactions get added to the tangle, a “weight” is added to attached ancestor transactions. When a transaction has enough weight, the transaction will exhibit a “confirmed” status. In principle, this confirmation could be as quick as seconds when there is a sufficient flow of transactions across the network.
In Nano, there is a different confirmation system based on “representatives”. In general, all that is needed is your cryptographic signature on your “send” and “receive” blocks. When the node syncs, it runs through the ledger to ensure that the signatures are authentic.
You can find below an infographic that summarizes the main differences between Nano and IOTA.
Is It Worth Investing in NANO?
Nano is an ambitious and technically impressive project. It’s promise of unlimited scaling and zero-fee transactions is particularly enticing, especially for Bitcoin users that are currently seeing transaction confirmation times and fees skyrocket.
Investors can likely look forward to a price spike when more exchanges pick up XRB, but it might be very quickly followed by a reset as holders cash in on it. There will almost certainly be increased but profiting from this in the short term might be largely due to luck.