✔️ Information reviewed and updated in April 2024 by Pedro Martínez González

Something that we all have clear, not only in the cryptocurrency environment, is that innovation must be constant and sound. In Nano we found a very striking case study of how innovation and reinvention can revive projects.

And it is that how many cases of companies we can find that have perished because of not innovating and reinventing themselves when the market asks for it. Here we will talk about this cryptocurrency, formerly known as Raiblocks, which came with a different, new and renewed offer, which seems to pose a before and after for this currency.

▶ What is Nano?

We can define Nano as a low latency cryptocurrency which operates under a decentralized scheme. Its base is found in Blockchain technology, only that it incorporates a new type of architecture known as Block Lattice. This technology allows each wallet to have its own blockchain.

Its birth is found in an attempt to solve problems of the traditional Blockchain such as that used by Bitcoin. The long waiting times, the slowness of the transactions, as well as the reduced size of the blocks were the main points to be solved.

▶ Differences of Nano vs Bitcoin

• Individual blocks: One of the main improvements that we can find in the Nano Blockchain is the fact that here each block is an individual transaction. This is a great advantage, since each block can be processed independently and not in a set as it happens in Bitcoin.
• Processing speed: By being able to process the blocks individually and not having to wait for a block to form, the time or speed of processing the transactions becomes greater. This increases efficiency and reduces waiting time.
• Automatically validated transactions: Traditional Blockchains require a user, or group of users, behind for the validation of transactions. Instead, in Nano the validation is done automatically when the PoW is preloaded as a pre-cache which is arranged in both the receiver and the transmitter.
• Voting mechanism: In order to avoid the centralization of powers as happens with the PoW algorithm, Nano has incorporated the Delegated Proof of Stake algorithm. This allows users to vote in case they detect fraudulent movements or unreliable information.
• Low energy consumption: By lacking mining, as well as the automatic approval of transactions and the use of individual blocks and not a set, the energy efficiency of this currency is greater than that of other virtual currencies. This reduces the economic and environmental costs of operation.
• Accounting book: One of the bases of cryptocurrencies like Bitcoin is the creation of a virtual generalized ledger which is the lifeblood of the Blockchain. In the case of Nano, this is not necessary, since each Wallet is a book in itself which maintains its own balance and count.
• Amount of coins: Another considerable difference is found in the amount of coins available for each virtual currency. Litecoin, for example, owns 84 million while Bitcoin barely exceeds 21 million. Instead, Nano already operates with about 133 million tokens, which makes it one of the largest coins in coins.
• Mined: Lastly, You should know that Nano cannot be mined, since its automatic validation mechanism, as well as its Blockchain prevent it. This means that we cannot obtain coins through rewards for validating blocks of the chain.

▶ Technology behind Nano

Although the technology behind this cryptocurrency seems complex, in reality it is not so complex. Here a different type of Blockchain is operated which is called Block Lattice. The peculiarity of this system is that each user has their own Blockchain which is called Account Chain.

That's right, each of the wallets operates its own chain of blocks which only it can manipulate, in addition to having a visible copy of the public domain for the network. In this way, each of the chains can be updated without being in sync with another, since they operate independently.

Another great advantage is that, despite each user having their own chain, it turns out to be very light. In this way, the processing turns out to be much faster, it hardly requires resources and its cost becomes zero.. This makes Nano a much cheaper cryptocurrency.

To eliminate block size issues, Nano incorporates a package of protocols known as UDP or computer protocol unit to exchange datagrams without prior establishment of any connection between two systems. Thus, Nano makes the operation of the Block Lattice superior to the Block Chain.

▶ Mining

You should know that currently all the Nano coins available in the market have been released so mining is not possible. This is important to take into account, since there are users who deceive others saying that they mine Monero.

This is not really the case, since the most common, when it comes to mining, is that these Pools may actually be mining other currencies such as Monero. Afterwards, they exchange those coins for Nano and this is how they pay you. While this is not illegal, it is misleading.

▶ How can I get Nanos?

To get Nano there are only two options, the first is very simple, and is to buy the hands directly in an Exchange. Today, the main brokerage houses already offer this cryptocurrency which has both Bitcoin and Ethereum as its most common pair.. This makes buying it a lot easier.

Another option is to buy it or exchange it directly with an individual. Although this form is valid, it is not the most recommended, especially for security and trust issues. Remember that direct mining of Nano is not possible as all the coins have already been released.

About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

You can read more about me here.