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Nano is a cryptocurrency that was designed to be energy-efficient and a frictionless medium of exchange that does not have any transaction fees. Nano was launched in 2014 under the name RaiBlocks, changed to Nano in 2018. Nano has a unique design that involves every user account having a proprietary blockchain that can only be updated by its owner.

When transactions are carried out, the user signs a transaction that subsequently updates their ledger, and it is then broadcasted to the rest of the Nano network.

When the Nano nodes see enough confirmations that can validate the transaction, they will independently deem it irreversible, and their copy of the ledger will be updated to include this transaction.

This sets Nano apart from all other cryptocurrencies because Nano's blockchain does not keep a full record of transactions. Instead, the Nano blockchain keeps track of NANO account balances in addition to the associated transaction amounts.

Component Nano
Technology Directed Acyclic Graph (DAG), Open Representative Voting, Block Lattice
Reliability Highly Reliable
Market Value +$725 million
Open-Source – Yes/No? Yes
Consensus Method Open Representative Voting (ORV)
DApp relation None
Founders Colin LeMahieu
Founding Date 2014

 

 Nano is known as one of the best eco-friendly cryptocurrencies that have a market cap of more than $725 million, using the following unique technologies:

  • Directed Acyclic Graph (DAG)
  • Open Representative Voting (ORV)
  • Block Lattice

 

How does Nano Work?

Nano is designed to facilitate fee-free transactions, and the key to Nano's unique design is that every account has its own blockchain that can only be updated by the owner.

When a transaction is carried out, the sender and receiver must give transactional comments. After this has been given, signals convey the completion of the transaction, and it is settled.

The transaction remains in the pending stage when only the sender signs it, which results in an unsettled transaction. Once the receiver has signed the transaction, the transaction is verified, and it will be recorded on Nano's main blockchain, which means that there is no need for the transactions to be checked.

The consensus method that Nano uses ensures that the network of nodes that are used remain synchronized, preventing users from breaking any of the software rules.

The Open Representative Voting (ORV) consensus mechanism is a Delegated Proof-of-Stake (DPoS) consensus method. Under this consensus, the Nano nodes are assigned a “Voting Weight” according to their account balances.

These nodes can then choose to delegate their votes to another node on the Nano network. Once a node has enough voting rights, they become the Principal Representative, and they are allowed to vote on transactions proportionally to the funds that are in their accounts.

The representatives do not receive payment when they vote on the transactions and blocks that should be added to the blockchain.

In terms of transaction speed, Nano can process over 10,000 transactions per second, according to the Nano Whitepaper.

In terms of its advantages and popularity, Nano offers the following:

  1. User-friendly and feeless
  2. Eco-friendly
  3. Instant
  4. Trustless and Low-latency
  5. Scalability

 

       1.User-friendly and feeless

Nano is extremely easy to use by default design, and in addition, the Nano network offers feeless transactions by transferring value efficiently.

Nano offers users the option and necessary services that enable empowering and cost-saving qualities associated with digital money.

 

      2. Eco-friendly

With a movement towards a more sustainable world, many digital money networks such as Bitcoin are known for being wasteful, requiring massive amounts of computational power to secure the network.

Nano was designed to be weightless and to have an efficient consensus mechanism that uses less energy for transaction verification.

 

      3. Instant

The idea behind digital money is that it should be fast and easy to access. It is meant to improve on conventional payment options that take longer for transactions to be completed.

Nano transactions make it easy and fast for payment to be settled instantaneously on the network. Nano uses an innovative block-lattice system that allows the overall framework to maintain records that indicate the current account chain balances on the ledger.

The Nano protocol only records the account balances instead of keeping the entire transaction history on the main ledger.

 

      4. Trustless and Low-latency

Nano is known to be trustless because of the consensus mechanism that it uses in addition to its overall infrastructure. Nano uses Directed Acyclic Graph (DAG) technology in combination with block-lattice architecture to ensure this.

 

      5. Scalability

By using a delegated Proof-of-Stake (DPoS) consensus mechanism and DAG technology, it means that Nano is infinitely scalable, and it also ensures instant transactions without charging any fees because Nano does not need mining to secure its network.

 

What are the Nano-based Projects?

Because of its unique build and architecture, Nano is not a blockchain upon which other projects can be built or executed, like Ethereum.

Nano is a cryptocurrency and blockchain project that is designed to be a highly energy-efficient and frictionless medium of exchange where there are no transaction fees charged.

 

For what is Nano used?

Nano is a peer-to-peer digital currency that is decentralized and open-source, intended to be a zero-fee digital payment platform.

Nano offers everyday payments for individuals as well as businesses without users having to pay transaction fees.

Nano is a zero-fee digital payment protocol that allows for instant payment transactions between different users. This means that Nano does not charge any fees when payments are sent or received over the Nano network, and transactions occur instantaneously.

Nano's native token NANO is used to facilitate everyday payments between users. It can also be used within the WeNano app, which is a social wallet that can facilitate different payments, tips, and it also allows users to discover others.

Nano provides one of the most eco-friendly distributed-payment networks in the world, using a block-lattice, which is a Directed Acyclic Graph (DAG) data structure.

Using this means that every user with an individual account can control their own blockchain as opposed to using the overall blockchain and the entire network.

This unique structure increases transaction speeds and makes the cryptocurrency project more lightweight.

 

Is understanding Nano hard?

No, understanding Nano is not hard.

According to the official Whitepaper of Nano, the overall architecture consists of the following components:

  1. Account
  2. Block/Transaction
  3. Ledger
  4. Node

 

      1. Account

A cryptocurrency account can be defined as a public-key portion of a digital signature key-pair, much like a bank account number that users can provide to others and to which they can receive funds.

The public key is the address of the account, and it is shared with other participants in the network. The private key, on the other hand, is like a password that is used to access the account, and it must be kept secret.

There is a digitally signed package of data that ensures that the contents were approved by the private-key user, and there is only a single user that may control a wide range of accounts, but there is only one public address that may be used per account.

 

      2. Block/Transaction

The terms “block” and “transaction” can be used interchangeably because a block holds a single transaction. However, a transaction will refer to the action, while the block can refer to the digital encoding associated with the transaction.

The transactions on the Nano network must be signed by the private key that belongs to the account on which the transaction is being carried out.

 

      3. Ledger

The ledger refers to the overall set of accounts. Every account on the Nano network has its own transaction chain, which is a key design component that replaces a run-time agreement with a more innovative, effective design-time agreement.

Both parties in the transaction agree through signature checking that only the account owner may modify their own chain. This translates into a shared data structure and distributed ledger into a set of ledgers that are not shared.

 

      4. Node

Nodes can be defined as a piece of software that operates on a computer. The nodes conform to the overall Nano protocol and subsequently participate in the Nano network.

The node software manages the ledger and any other accounts that it may control, if there are any. The node can either store the overall ledger or a specific history that only has the last few blocks of every account's blockchain.

When a new node is being set up, it is recommended that the entire history be verified and pruned locally.

In terms of comparing Nano to other blockchains, it differs significantly from cryptocurrencies such as Ethereum and Bitcoin. With these cryptocurrencies, all transactions are recorded, and they are batched into blocks. 

In these systems, the transactions bid to be included in a block, and there are fees distributed to the nodes which create new blocks, with these fees incentivizing the continued operation of these networks because the nodes must spend resources so that they can compete for the right to create blocks.

Nano has done away with these conventional aspects, and instead, the Nano nodes vote on who receives the right to create blocks. This also occurs at low to no cost, which means that users do not pay to have their transactions included in the Nano blockchain.

In terms of its importance, it is essential to understand how Nano works because it offers fee-less, eco-friendly solutions that can place cryptocurrency in a better light.

 

What is Nano's Technology?

  1. Directed Acyclic Graph (DAG)
  2. Block Lattice
  3. Proof-of-Work
  4. Representative Nodes
  5. Open Representative Voting (OVR)

 

       1. Directed Acyclic Graph (DAG)

Nano is built on DAG technology, and it uses a block-lattice architecture where every user has their own account or address with a proprietary and native blockchain linked to that account.

While other blockchains can track the transaction amounts, Nano only tracks account balances which means that it requires smaller storage.

Every individual blockchain can only be adjusted by the owner of the account, and it reflects the balance history of that user. This is then shared with the network instead of sharing all other information.

This unique architecture allows for the asynchronous update of every blockchain to the overall network. This architecture does not compromise the decentralization of the network but promotes it.

Nano is therefore perfectly positioned for instant transfer of funds without charging fees. This also means that Nano can be infinitely scalable.

The transfer of value on Nano's network creates two transactions, one which is a send transaction that deducts from the sender's ledger and another which is a receive transaction, which adds the deducted amount to the receiver's ledger.

Each sent attempt will reference the previous block on the individual sender's blockchain. The only time that a double-spend would occur is when the same previous block is referenced by two separate send transactions.

However, when this happens, the Nano network notes will cast a vote to decide which of the two transactions must be kept, with the other being discarded automatically.

 

      2. Block Lattice

Nano uses a structure known as Block Lattice, which provides every individual account on the Nano Network with its own blockchain. 

With Block Lattice, the only person that may add blocks to their blockchain is the individual account holder that has access to the account with a private key.

This is completely different to other blockchains because most other blockchains have a single chain with miners that must compete continuously with one another to add a new block and receive the rewards.

Block Lattice provides the necessary security, and it also allows for a significant number of transactions to occur simultaneously, which increases the scalability.

Every block in the lattice will record and update the state of the account. The transaction amounts are then interpreted as the difference in the account balance between the consecutive blocks in the individual chain.

Every transaction on the individual's account has a block instead of batches of transactions in a single block, and every block replaces the previous block on the account.

In this way, users can send and update their blocks without having to use the entire Nano network. In addition to this, every block in Nano has a small proof-of-work component that is used to discourage spam transactions.

 

      3. Proof-of-Work

The Nano architecture uses the Proof-of-work consensus, but it is not being used to reach an agreement on the network. Instead, PoW is used as an anti-spam measure that will avoid attacks.

Because there are no fees charged on the Nano blockchain, attackers could spam the network indefinitely, but with the PoW implementation, Nano has a small amount of work that is associated with every block on an individual's blockchain.

This work takes 5 seconds to generate, and it is validated within a microsecond. This means that the attacker must dedicate a large portion of computing power to successfully attack Nano, while normal users only need a small amount to carry out transactions.

Different methods are used for pruning spam transactions, and this limits the amount of storage that an attacker can use.

 

      4. Representative Nodes

Nano does not require miners to verify transactions or to secure the network, which means that there are no transaction fees involved. Instead, the Nano ledger is secured by a Delegated Proof-of-Stake (DPoS) protocol.

This involves Nano users choosing the node that they want to represent their votes. The representative nodes will verify block signatures, and they will also vote for valid transactions if there is any conflict.

 

       5. Open Representative Voting (ORV)

The unique consensus method that Nano uses is called Open Representative Voting (ORV). Every account on Nano's network can freely choose a Representative that can vote on their behalf, even when the user's account, or the delegating account, is offline.

Representative accounts are configured according to the online nodes. These nodes vote on the validity of the transactions that appear on the network.

The voting weight that these nodes have will depend on the sum of balances for the accounts that have delegated the nodes. A node with enough voting weight will be selected to become the Principle Representative, and the vote that this entity sends out will be broadcasted by the other nodes in the network.

These votes are shared, and they are broadcast across all nodes. They are then tallied up and compared against the available online voting weight.

If a node sees that a block has received enough votes to reach quorum, the block is subsequently confirmed. The blockchain of Nano is lightweight, which means that the network can reach confirmation extremely fast.

The delegation of voting weight does not mean that users will stake their funds. This means that the account that delegates can spend the funds that they have available at any given time without any restrictions.

Accounts on the Nano network may freely delegate the voting weight that they have to any representative at any given time. This means that Nano users have more control over who is given the power with consensus and how decentralized the Nano network truly is.

There is no direct monetary incentive for nodes that validate blocks, and this removes the centralization forces in the long-term trend towards the overall decentralization of the network.

In terms of evolution, Nano went through the following developments to get to where it is today:

  • Nano was initially launched under the name RaiBlocks in 2014 by Colin Lemahieu. 
  • The official mainnet of RaiBlocks was launched on October 24, 2015, and the project aimed to address the inefficiencies that digital currencies and financial payments experience with scalability, high transaction fees, and high energy usage.
  • At launch, NANO (XRB at the time) was distributed for free through a Captcha faucet that started in 2015. During this process, users would solve complex CAPTCHA tests, and they would be rewarded with NANO for their efforts.
  • However, the faucet was shut down in 2017 after 126,248,289 NANO had been distributed of the initial 340 million NANO.
  • 207,034,069 NANO was sent to an unrecoverable address – which signifies that these coins were burnt.
  • A 7,000,000 NANO formed part of the developer fund, and that along with the distributed coins brought the fixed supply to 133,248,297 NANO, 34% of what was initially planned.
  • In January 2018, RaiBlocks was rebranded to Nano, referencing one of the network's main uses, namely microtransactions, in addition to its lightweight design. 
  • In February 2018, BitGrail, an Italian cryptocurrency exchange, announced that it would cease operations following a hack. This hack resulted in the loss of 17 million NANO from the wallets on BitGrail, with users unable to access the assets that were stored on the platform.
  • BitGrail users sought help from the Italian court system, and they had the support of the Nano Foundation. Together, a class-action suit was launched against the platform owner.
  • In 2019, BitGrail was found liable for the losses, and it was discovered that the platform had failed to report any losses from as early as 2017.

 

In terms of Nano's potential, the following can be highlighted:

  • Nano has seen a lot of interest from investors because it is classified as an eco-friendly cryptocurrency coin with an energy-efficient way to reach consensus as opposed to Bitcoin and other cryptos.
  • Nano has a fee-free structure, and it is lightweight, meaning that it can become a mainstream payment network if there is enough adoption.
  • Nano is gaining traction as an investment option, especially in developing countries where there are issues with cross-border payments.

 

What is Nano’s price?

Nano was launched in 2014, and its price average for the past five years is as follows:

  2017 2018 2019 2020 2021 To date
NANO Price High $13.38 $33.7 $1.93 $1.38 $13.01
NANO Price Low $0.0073 $0.76 $0.63 $0.35 $1.6
Market  Cap $30.05M $4.49B $258.38M $184.46M $1.73B

Is Nano Open-source?

Yes, Nano is an open-source, peer-to-peer decentralized payment network and blockchain project.

Open-source means that software is collaboratively produced and that it can be shared freely. In addition to this, it also means that it is transparently published and that it is developed to be a community instead of being the property of a single entity or a group.

An open-source project is developed without a single choke point in the process, and that there is not a single company or one individual that can make, own, sell, or distribute it.

There is no single owner of Nano's network, and there are several different benefits to the decentralization of this technology.

There are some concerns that the technology may become vulnerable if the technology is open-source, but the open-source nature of Nano helps to protect it and to maintain its transparency.

One of the main philosophies involved with open-source projects such as Nano is that several efficiencies can be gained. When developers allow for the input of others, they can boost the potential applications that are available and spread the technology.

Open-source projects mean that it is a public and transparent way for transactions to be recorded. This eliminates any sort of operator tampering and revisions.

 

What is the best Nano wallet?

Simply defined, a Nano wallet is a piece of software where users store the necessary data to access their Nano (NANO) funds. This data contains a private key, which is like a password, and a wallet address, also known as a public key, which acts as an account number.

In terms of the types of Nano wallets, users can distinguish between the following:

  • Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
  • Hot Wallets, which are online applications that require an internet connection.
  • Physical wallets are unique pieces of hardware like USB devices that keep crypto funds offline.
  • Web wallets are web browser ad-on wallets.
  • Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
  • Paper wallets, which is a piece of paper with a code or QR code on them, to access the assets, the user enters the key or scans the code to access their account.

 

The functions and importance of a Nano wallet are the same as owning and using a physical wallet where fiat currencies are stored. Nano wallets can be used to store, transfer, receive and manage NANO in one central place.

When crypto coins are stored in a wallet, it does not mean that the actual coins are there, but the wallet instead generates a private key, also known as a hexadecimal code, that is used alongside another hexadecimal code, or a public key, which is linked to a certain amount of currency.

The best wallets for Nano are:

  1. Ledger Wallet
  2. Nano Desktop Wallet
  3. Natrium
  4. NanoWallet.io
  5. NanoVault
  6. Guarda
  7. Canoe Wallet

 

       1. Ledger Wallet

The Ledger Nano wallet is one of the most popular and trusted hardware wallets available on the market. The Ledger Nano is like a USB device with a manual confirmation button that is compatible with Android, iOS, Linux, macOS, Firefox, Windows, and Chrome.

The wallet supports over 1,000 different cryptocurrency coins, and it has a Bluetooth connection and a small battery, allowing the user to connect wirelessly from their Android or iOS device. In addition, the wallet also supports Two-Factor Authentication as well as a multi-signature facility.

 

      2. Nano Desktop Wallet

The Nano Desktop wallet is a desktop application that can be used on computers with Windows, macOS, or Linux operating systems. The Nano Desktop wallet is secure, and users have full control over their private keys because they are not stored on the provider's server.

 

      3. Natrium

The Natrium wallet is a mobile wallet that is compatible with either Android or iOS mobile devices. The HD wallet is extremely secure, and it generates a backup seed code when users use it for the first time.

Users are required to keep this code safe as it allows them access to their account if their wallet is lost or stolen. The wallet also uses a PIN code and biometric authentication.

With Natrium, users can manage several accounts and receive real-time notifications when funds are transferred into the account. Transactions are instant, and users can easily share their public address through a QR code.

 

      4. NanoWallet.io

NanoWallet.io is a web-based wallet that keeps the user's encrypted seed code on native servers in addition to allowing users to store it on their own system.

NanoWallet.io offers users the ability to recover lost assets if they lose their seed code. The user interface is extremely user-friendly, and users can create several accounts where they can send, receive, and store their NANO coins without worrying about transaction fees.

 

      5. NanoVault

This wallet is a hot/online wallet, and it is one of the official wallets for NANO coins. With this wallet, users have full control of their funds and their private keys.

The private keys are not kept on NanoVault's servers, and users can easily manage their transactions and assets without having to download the full Nano ledger.

However, NanoVault charges a minimum transaction fee when users transfer funds between different wallets. NanoVault can either be used as an extension to browsers, or it can be used as an open-source desktop wallet.

When users set up the wallet for the first time, they will receive a seed code that is automatically encrypted into the browsers. Users are urged to ensure that they keep a backup of this code so that they can retrieve their account if anything happens.

Users can easily download the full-node desktop wallet to any computer with Linux, macOS, or Windows operating systems.

 

      6. Guarda

Guarda is a non-custodial and user-friendly wallet that supports different cryptocurrencies, including NANO. With Guarda, users can transact, and they can also trade and buy different cryptocurrencies from within the wallet.

The Guarda Wallet is available as a web-based wallet, and it can be downloaded onto different desktops and mobile devices. Guarda allows users to gain complete control over their private keys, and for additional security, Guarda provides multi-signature features.

In addition, Guarda also offers users the ability to stake different coins that use the PoS consensus, allowing users to earn an additional income for holding coins, providing these blockchains with additional liquidity.

 

      7. Canoe Wallet

The canoe is another official wallet that is recommended by the Nano Foundation that is supported on both mobile and desktop devices. The canoe is open-source, and it is also a cross-platform Nano wallet known for its transparency.

Users are given complete control of their NANO in a secure, fee-less way and ensure instantaneous transactions.

 

What is Nano’s Burn rate?

Nano does not have a burn rate.

Coin burns can simply be defined as the process where coins are sent to a public address where they cannot be spent because the private keys of these addresses are unobtainable.

Coins are burnt for various reasons, including:

  • To create new coins
  • To reward token holders
  • To destroy any coins that were not sold after an Initial Coin Offering (ICO) or a token sale.

 

 When RaiBlocks and XRB were launched, the coins were distributed by allowing users to solve complex CAPTCHA tests, in which they could receive XRB as a reward for their efforts.

This lasted from 2015 to 2017, and 126,248,289 of 340 million coins were distributed before the faucet was closed. There were 207,034,069 coins sent to an unrecoverable address, which removed these coins from circulation and burnt them.

 

What can you do with Nano?

Nano is a ground-breaking cryptocurrency project that tries to solve some of the basic problems that blockchains such as Ethereum, Bitcoin, and others struggle with.

One of the advantages of Nano is that it is theoretically infinitely scalable, and it has fee-less transactions in addition to fast transaction speeds.

Some basic uses for Nano include the following:

  1. Micro Payments
  2. Cross-Border Payments
  3. Business-to-Customer (B2C)
  4. Trading
  5. Investment

 

      1. Micro Payments

Nano can be used to make payments of small amounts for a wide range of applications. Nano has previously been cited as the solution for developing countries to make payments for everyday services and products without having to worry about costly transaction fees.

 

      2. Cross-Border Payments

Nano offers frictionless and cross-border payments that empower people across the globe, including rural communities that do not have access to traditional banking services, to access fair, secure, and fast money systems that do not subject users to fees.

 

      3. Business-to-Customer (B2C)

Nano is working on seamless checkouts with B2C solutions, whether it is in-store or online.

 

      4. Trading

Nano's extremely fast and fee-less transaction makes it ideal for cryptocurrency traders.

 

      5. Investment

Nano can be bought and traded with traders profiting from buying low and selling high or selling high and buying the cryptocurrency at a lower price.

Investors can also purchase Nano and use long-term investment techniques to gain a return on investment as the price of the cryptocurrency appreciates.

Traders can also trade Nano as a contract for difference (CFD) on exchanges and broker websites, which means that they can speculate on the fluctuation in prices, but they will not own the underlying asset.

 

What are the criticisms against Nano?

  • Nano is often criticized for the lack of incentives to run a Nano node. However, this is addressed by the usage of NANO as an incentive. Running a Nano node means that the security of the network is increased while it also ensures that there are instant transactions and no transaction fees.
  • Nano has also been criticized that its fee-free structure can compromise decentralization, and it makes it vulnerable to attacks, especially Sybil attacks and Denial-of-Service (DoS) attacks. However, Nano has addressed how it plans to deal with attacks in detail in the Whitepaper.
  • Earlier in 2021, Nano experienced a transaction spamming attack that disrupted operations on the network. This led to many unconfirmed transactions and explorers that were not synchronizing, with some nodes noticing a discrepancy in network data.

 

What is the biggest competitor of Nano?

The biggest competitor of Nano is IOTA.

IOTA is a scalable and open-source communication protocol instead of being a blockchain. Its native token, MIOTA, is used for the transfer of value.

IOTA was developed by the non-profit IOTA Foundation based in Berlin, and the goal behind the protocol is to develop a trust layer relating to the Internet of Everything (IoE). IoE enables all devices to transfer data and values that are immutable and completely free of things.

IOTA has high levels of interoperability, and it is set to become the Ledger or Everything. IOTA is known for allowing fast and tamperproof, decentralized transfers of value across several nodes.

This means that transactions are handled differently than they normally would have with other blockchain projects. Transactions are verified by full nodes, while data transactions are directly confirmed and simultaneously notarised.

Notarisation is used to prove that the electronic document exists in a specific form at a specific time. It also confirms that the document has not been altered in any way since it was created.

One thing that makes both Nano and IOTA unique and amazing is the fact that there are no transaction fees charged. However, both Nano and IOTA focus on different things.

IOTA is tangling itself into the Internet of things (IoT) in addition to machine-to-machine learning (M2M). Nano is leaning towards becoming a popular transactional network and currency.

While Nano works towards making peer-to-peer transactions seamless as well as free, IOTA strives to solidify strategic partnerships that will increase its chances of adoption worldwide.

Both projects visualize the future of cryptocurrency through DAG instead of a conventional blockchain. IOTA has partnered with entities such as the RWTH Aachen University, which will allow the protocol to exploit Tangle, allowing it to cross over into industrial use applications.

Initiatives such as these will make IOTA extremely valuable for future use, especially with the rise of Decentralized Finance (DeFi) across different industries.

Nano, however, is still doing well for itself, especially with its aim at usability in the cryptocurrency landscape, with the main drive behind its efforts at becoming the best payment currency.

In terms of market cap, IOTA has a market capitalization of $3.88 billion while Nano has a market cap of over $727 million, with IOTA being more popular than Nano in terms of its market cap and subsequently a higher demand because of its range of uses.

In terms of price stability, IOTA's native token MIOTA has seen a significant number of bullish trends and may be heading for a rally in the short term. Nano, on the other hand, indicates that there is positive momentum looming in the short term, which bodes well for investors and traders who go long.

 

Is Nano better than Bitcoin?

Yes, Nano is technically and theoretically better than Bitcoin.

Bitcoin is still the king of all cryptocurrencies, but Nano brings a lot of improvements to the table that prove that it is technically sounder than Bitcoin. This is not a guarantee that it will ever overtake Bitcoin or other projects, but it could boost the cryptocurrency in the long term with the widespread adoption of digital currencies as an alternative medium of exchange.

Bitcoin serves as a better long-term store of value, while Nano serves as a better short-term medium of exchange. Bitcoin has a proven track record of over 12 years, and it is still going strong. Bitcoin also has the highest market capitalization of any cryptocurrency coin, the largest trading value, and the most invested money.

Nano, however, is the better coin for small transactions and short-term speculative gains. There are no fees charged when using Nano, and it means that it is perfect for moving small amounts of currency or making daily transactions.

Nano also has a fixed supply, but there are no rewards for nodes that verify transactions and secure the network. Theoretically, this could lead to decreased security for the network, and it could also fail altogether if there are no nodes, especially because it would mean that transactions will not be processed.

In May 2021, when Elon Musk turned against Bitcoin, cryptocurrencies such as Nano saw massive gains of up to 98%, and overall, Nano has seen significant increases in the past few years.

Other points where Nano outperforms Bitcoin are as follows:

  • Nano has a transaction time of a few milliseconds, with up to 10,000 transactions processed per second. Bitcoin, on the other hand, takes 10 minutes for a block to be verified and can only process seven transactions a second.
  • Bitcoin transactions use up to 741kWh of electricity per transaction, while Nano transactions use 0.000112 kWh, which is why Nano is considered an eco-friendly coin in addition to the absence of mining.
  • Bitcoin is not scalable past seven transactions per second, while Nano's transactions per second are only limited by hardware, and it is infinitely scalable.
  • Bitcoin miners will inevitably inflate the Bitcoin supply until 2140, when the last Bitcoin is mined. Nano, however, is fully distributed.

 

Just because Bitcoin is popular now does not mean that it is the inevitable long-term winner. Bitcoin has technical limitations, and it is extremely disastrous for the environment. 

As cryptocurrency technology is developing, there will be a clear alternative to Bitcoin, either from the projects that exist or one that is yet to emerge.

 

Can Nano and Bitcoin Coexist?

Yes, Bitcoin and Nano can coexist.

Bitcoin is a long-term store of value, while Nano is perfect as a short-term medium of exchange.

 

How does Nano make revenue?

While other blockchain projects make money through their transaction fees, partnerships with organizations, fees from apps and projects that they design, the Nano Foundation has a designated development fund of 7 million NANO, which was created in 2017.

Many of the developers who work on the Nano project do it for free or as a hobby without remuneration for the work that they do.

In addition to this, there is also a Nano Donation Portal where donations can be made towards the development fund, or individuals can sponsor certain projects.

 

How long does it take to mine Nano?

NANO is not a mining-based token and, therefore, cannot be mined.

Crypto mining is more than just a way to release cryptocurrencies that work according to a Proof-of-Work algorithm into circulation. Crypto mining also involves the validation process surrounding transactions on a blockchain network, subsequently adding them to the chain of the distributed ledger.

Cryptocurrency mining plays an important role in preventing the double-spending of digital currency and the securing of the network overall.

Nano does not employ this approach but instead uses a consensus mechanism called Open Representative Voting (ORV).

Representative nodes are chosen by Nano users to vote on every transaction. Every node cements every transaction after they see enough representative votes, allowing the transaction to reach quorum.

Nano transactions are processed individually on the blockchain of each user. They are also processed asynchronously, and this means that finality is achieved in less than a second.

Nano has a unique block-lattice ledger design, and this means that only the owner of the account can sign blocks on their account chains. These users can also decide on the node that they want to represent their vote, and the node with the most votes becomes the Principle Representative.

The following cryptocurrencies have different mining times, including:

  • Bitcoin – with a hash rate of 110.00 TH/s, 0.00072799 Bitcoin can be mined per day.
  • Dash – depending on the mining inputs, 0.01893066 Dash can be mined per day with a hash rate of 65,000.00 MH/s.
  • Litecoin – With a mining hash rate of 9,500.00 MH/s, 0.22498243 Litecoin can be mined per day.

 

What can Nano’s Smart Contracts do?

Nano does not have conventional smart contracts such as Cardano, Solana, Neo, or Ethereum, but it has a more simplified version of smart contracts, known as Nano Contracts.

This function allows two or more people to transfer their funds to a special transaction by using the Hathor Network. Nano Contracts are set to be resolved at a later stage, with a simple set of rules that are applied to decide on the final distribution of the funds.

Another concept involved in Nano Contracts is Oracles, which are agents that submit pieces of information from outside of the network through channels and into the network.

These Oracles are important for Nano Contracts which are settled because they factor in real-world events, including stock prices, election results, and other metrics.

The motivation behind Nano Contracts is the same as conventional smart contracts, but the design is simpler. Smart Contracts are extremely complex, and this makes them susceptible to bugs, and Ethereum itself had to fork to undo such consequences.

In addition, conventional Smart Contracts also need a significant amount of computational power to carry out, and therefore Ethereum charges additional fees for processing Smart Contracts.

However, with the Hathor Network, developers instead designed a simple set of instructions that allow users to create powerful contracts that do not have the same level of complexity and vulnerability.

Because these contracts are simple, it also means that there are no high costs involved in processing Nano Contracts, especially considering the Hathor philosophy surrounding feeless transactions.

 

Can Nano reach $1k?

Yes, according to cryptocurrency experts, Nano may reach $1,000 by 2030.

However, this will depend on the next Bitcoin halving, which could send alternative coins on a significant bull run as more traders and investors decouple from Bitcoin.

 

Can Nano be used as currency?

Yes, NANO coins can be used as currency.

The Nano blockchain is a fee-free cryptocurrency payment network and project, with its currency used as a peer-to-peer digital currency that can be used for the following:

  1. Micro Payments
  2. Cross-Border Payments
  3. Business-to-Customer (B2C)
  4. Trading
  5. Investment

 

      1. Micro Payments

Nano can be used to make payments of small amounts for a wide range of applications. Nano has previously been cited as the solution for developing countries to make payments for everyday services and products without having to worry about costly transaction fees.

 

      2. Cross-Border Payments

Nano offers frictionless and cross-border payments that empower people across the globe, including rural communities that do not have access to traditional banking services, to access fair, secure, and fast money systems that do not subject users to fees.

 

      3. Business-to-Customer (B2C)

Nano is working on seamless checkouts with B2C solutions, whether it is in-store or online.

 

      4. Trading

Nano's extremely fast and fee-less transaction makes it ideal for cryptocurrency traders.

 

      5. Investment

Nano can be bought and traded with traders profiting from buying low and selling high or selling high and buying the cryptocurrency at a lower price.

Investors can also purchase Nano and use long-term investment techniques to gain a return on investment as the price of the cryptocurrency appreciates.

Traders can also trade Nano as a contract for difference (CFD) on exchanges and broker websites, which means that they can speculate on the fluctuation in prices, but they will not own the underlying asset.

 

Can Nano be tracked?

No, Nano cannot be tracked.

Nano is a public, open-source and decentralized blockchain that is transparent. By using the NanoCrawler site, users can view a Nano address or hash, verified accounts, the node status, and the status of the Nano network, but individuals cannot be traced, and their information cannot be exploited.

 

Can Nano be hacked?

Yes, Nano, like all other cryptocurrency blockchains that are decentralized, faces many attacks from malicious parties. However, in Nano's Whitepaper, the development team provides a detailed measure of how the Nano blockchain and system takes preventative measures against such attacks.

  1. Block Gap Synchronisation
  2. Transaction Flooding
  3. Penny-Spend Attack
  4. Precomputed Proof-of-Work Attack
  5. +50% Attack
  6. Sybil Attack
  7. Bootstrap Poisoning

 

      1. Block Gap Synchronisation

If a block is not properly communicated or broadcasted, the network could ignore transactions that follow that specific block.

If a node notices that a block does not reference a previous block, the node can either continue ignoring it, especially if it is a malicious block, or the node could request that it synchronize with another node.

If the node chooses to resync, a TCP connection will be formed with a bootstrapping node. This will subsequently facilitate an increased amount of traffic that the resync needs.

If the node decided to resync and the block was nothing more than a malicious block, the resync would not be necessary, and it would cause unnecessary increases in traffic on the network.

This Network Amplification could then result in a denial-of-service. To prevent that nodes perform unnecessary resync actions, nodes who notice such a block must wait for a certain threshold of votes before they initiate a TCP connection with a bootstrap node to resync.

If a block is accidentally missed and it does not receive a certain number of votes, it is safe to assume that it was junk data.

 

      2. Transaction Flooding

A malicious entity that tries to attack the Nano network could send a significant amount of unnecessary, valid transactions between different accounts that it controls to try and saturate the Nano network.

Unfortunately, because of the fee-less structure of Nano, this entity could continue its attack indefinitely. However, Nano employs a small-scale Proof-of-Work for every transaction, which limits the transaction rate that the entity could generate without a massive amount of computational power.

Even if there were to be such an attack, the nodes on Nano's network are not full historical nodes that could prune old transactions from their individual chains, and this diminishes the storage use from the attack for all users.

 

      3. Penny-Spend Attack

This attack involves a malicious entity spending infinitesimal quantities on a significant number of accounts to try and waste the storage resources that the nodes have, which is not a lot. 

Because the publishing of blocks is limited by the PoW, the creation of accounts and subsequent transactions are also limited. The nodes are not full historical nodes, and they cannot prune the accounts that fall below a certain metric, and the account is therefore labelled as invalid otherwise.

In addition, Nano only uses the smallest amount of permanent storage space, and the space that is required to store a single additional account is proportional to the size of a single open block along with indexing. Thus it is 96B +32B + 128B.

This translates to 1GB that could store 8 million penny-spend accounts, and if the nodes want to prune aggressively, they could even calculate a distribution that depends on access frequency. This would allow the nodes to delegate accounts that are not actively used, slowing the storage process.

 

      4. Precomputed Proof-of-Work Attack

The owner of an account is the only person who could add blocks onto their account chain, and any sequential blocks are computed with their PoW before they can be broadcasted to the overall Nano network.

If the attacker generates a significant number of sequential blocks, each with a minimal value that extends over a certain time, they will perform a Denial of Service (DOS), which will flood the network with transactions that seem valid but are not.

This will be processed by nodes, and it will be echoed across the network quickly. However, while such an attack is possible, it will only last briefly because transaction rate limits and other techniques are used to mitigate these attacks.

 

      5. >50% Attack

Nano has a balance weighted voting system that allows it to reach a consensus. If a malicious entity can reach more than 50% of the voting strength, the network could oscillate consensus, and this will inevitably break the system.

If an entity can lower the amount of balance, they must forfeit by preventing valid nodes from voting throughout the entire network DoS. Nano uses the following measures to prevent the >50% attack:

  • The vote weighting system is the primary defence against this attack. This is attributed to account holders incentivized to maintain the system's honesty so that their investment will be safeguarded. By trying to “flip” the ledger, it would be destructive to the system, and users could lose their investment as a result.
  • Forks in Nano are not accidental, and the Nano nodes decide on how to effectively deal with forked blocks. The only time that accounts are vulnerable to block forks is if the account holder receives funds from an attacker's account. Accounts can be safeguarded if the user waits a little longer before they accept funds from an account that generated forks or if the user opts not to receive the funds at all.
  • To maintain a maximum quorum of voters, Nano has representative voting as an additional defence mechanism. Account-holders who cannot participate in voting reliably because of high latency can nominate a representative who can vote using the weight of their balance.
  • The cost of the >51% attack is proportional to Nano's market capitalization, and in a PoW system, technology can be developed to provide disproportionate control. The cost involved with attacking Nano scales with the system itself, and if the attack is successful, the investment in the attack cannot be obtained.
  • Lastly, block cementing is another defence that is yet to be launched. Nano aims to settle block forks quickly through voting. However, nodes could theoretically be configured to cement certain blocks. This would effectively prevent the blocks from being rolled back after some time has passed.

 

      6. Sybil Attack

The Sybil Attack involves the creation of hundreds of nodes on one machine. However, the voting system of Nano is weight-based on the account balances of different users, and this means that the addition of nodes will not gain a malicious entity extra votes.

 

      7. Bootstrap Poisoning

If a malicious entity can hold an old private key that has a balance, the higher the probability will become that the balances existed at the time. Therefore, the account will no longer have participating representatives because the balances and/or representatives have been transferred to more updated accounts.

If a node is bootstrapped to an old representation of the Nano network, especially where the malicious entity has a quorum of voting stake, the attacker can oscillate voting decisions to the node.

If this new user wishes to interact with anyone else other than their attacking node, their transactions will subsequently be denied because they have differing blocks.

Nodes can waste the time of new nodes in the network when they feed these nodes bad information, and to counter this. Nodes can easily pair with an initial database of accounts.

This is the same process as downloading the entire ledger back to the genesis block, and the closer the download gets to be more updated, the higher the defence against this attack.

 

Can Nano make you rich?

No, Nano will not make you rich.

While Nano has experienced a significant amount of growth, the price is not set to reach $1,000 soon. Thus, without significant investment, Nano will not make you rich.

Nano is better as a short-term medium of exchange than it is as a store of value such as Bitcoin, Ethereum, and other cryptocurrencies.

 

Is it worth buying Nano?

No, it is not worth buying Nano.

The Nano network is like Bitcoin, but it is much more scalable, faster, and it does not entail any fees. Nano uses a block-lattice data structure and Directed Acyclic Graph (DAG) technology.

Nano is also an eco-friendly cryptocurrency that does not demand significant computational power because Nano is not mining-based in the way that Bitcoin is.

Nano uses an Open Representative Voting (ORV) consensus method, where every person with a NANO account can get voting rights to appoint a representative node based on their account balance.

Representatives vote on transactions to achieve consensus, and this ensures that the blockchain is secure and minimizes the chances of an attack.

There is a limit of 133,248,297 NANO coins that will never increase. Coins such as Nano want to be better than Bitcoin, and the main thing that keeps them from achieving this is adoption.

Many other coins, such as Bitcoin, Litecoin, Dogecoin, Ethereum, and so on, are seeing widespread adoption as a medium of exchange in addition to their related technologies that bring about convenience in the world.

Nano reports that many organizations use its services and platform, but more coins are more popular. Nano also does not offer any incentives to the nodes who secure its network, and this means that there will be consistent attempts to attack the blockchain.

Nano offers fast, fee-less transactions, but Nano is ranked #117 on the list of altcoins despite its unique technology, which means that it is far from being a popular investment choice.

 

Is Nano a good investment?

Nano is not a good investment or a store of value.

Nano is better as a short-term medium of exchange, and it also presents a plethora of trading opportunities for scalpers who rely on market volatility and rapid fluctuations in price.

 

Is Nano Legit?

Nano is legitimate.

Nano is a trustless cryptocurrency that offers low-latency, free transactions and some of the best transaction and payment network technology.

The Whitepaper of Nano is freely available, and the development team is sound. The Nano official website can be consulted for any additional information as well as the roadmap for further developments.

 

Is Nano’s Supply limited?

Yes, Nano has a limited supply of 133,248,290 NANO.

The original supply that was planned for NANO was significantly higher.

When RaiBlocks and XRB were launched in 2015, the coins were distributed by allowing users to solve complex CAPTCHA tests, in which they could receive XRB as a reward for their efforts.

This lasted from 2015 to 2017, and 126,248,289 of 340 million coins were distributed before the faucet was closed. There were 207,034,069 coins sent to an unrecoverable address, which removed these coins from circulation and burnt them.

Nano's entire supply is already in circulation, and it means that it is fully diluted. This is a factor that makes Nano completely decentralized, well-distributed, and secure. Most Nano accounts hold less than 100 NANO, and as of December 2020, 20% of NANO, which translates to 26 million, is held in a single cold wallet on the Binance cryptocurrency exchange trading platform.

7,000,000 NANO, 5% of the circulating supply, is kept by the Nano Foundation for further developments on the project.

 In terms of other cryptocurrencies, the following cryptos also have limited supplies:

  • Bitcoin (BTC) – 21,000,000 BTC
  • Cardano (ADA) – 45,000,000,000 ADA
  • Binance Coin (BNB) – 168,137,036 BNB

 

Does Nano have a fixed supply?

Yes, Nano has a fixed supply of 133,248,290 NANO.

  • Fixed or maximum supply can be defined as the total number of coins that can ever be in circulation.
  • Total Supply refers to the number of coins that have been mined, including the missing coins that are no longer in circulation or that have been lost.
  • Circulating supply refers to the total number of coins that are in circulation.

 

A coin that has a limited supply is deflationary because demand tends to outweigh supply, giving the coin its increase in value as supply diminishes and coins are released into circulation.

However, Nano's entire supply is already in circulation, and this means that it is fully diluted. This means that while Nano can appreciate, it will not do so at the same rate that other limited coins would, such as Bitcoin.

 

Is Nano the best Altcoin?

Nano is one of the best Altcoins based on the following:

  • Trackability – All Nano transactions can be viewed by using a block explorer, but the information of individual account holders is not compromised and cannot be misused or abused.
  • Security – Nano has several measures in place to ensure that the network remains secure. Investors are also urged to remain honest because their funds are at risk if they attempt to overthrow security. In addition to this, Nano uses a balance system depending on votes from different accounts.
  • Transactions – Nano is infinitely scalable and can currently handle 10,000 transactions per second, with limits depending on the hardware of the user.
  • Price Change – Nano has experienced significant increases in value and sees a lot of bullish trends, especially in bearish markets for Bitcoin and other currencies.

 

Despite these good factors, Nano is not the best altcoin for the following reasons:

  • Hacking – Nano has not been hacked but did experience a Sybil attack where the nodes were thrown out of synchronization in March 2021. While node operators minimized their bandwidth to deal with the issue, it resulted that the network was out of sync, and many transactions were obstructed by this.
  • Investment potential – Nano is better as a short-term medium of exchange than it is a store of value, which does not make it a good option for investment.

 

What are the differences between Nano and Bitcoin?

The distinct differences between Nano and Bitcoin are as follows:

  • Bitcoin charges fees of $10 per transaction, while Nano is fee-less.
  • Nano processes 10,000 transactions per second according to its Whitepaper, and it is infinitely scalable, while Bitcoin cannot scale past seven transactions per second.
  • Bitcoin's block time is 10 minutes, while Nano can verify blocks within a few milliseconds.
  • Bitcoin transactions can use 741kWh of electricity, while Nano transactions only require 0.000112 kWh.
  • Nano is fully diluted, and its entire supply is already distributed, while Bitcoin will inevitably inflate its supply until the last BTC has been mined in 2140.

 

Bitcoin is the best store of value, while Nano is better as a short-term medium of exchange.

  Bitcoin Nano
Price change 20/21 +$400% +440%
Market Cap $1 Trillion+ 727 Million+
Past Hacks None Sybil Attack March 2021
Popularity Very High Low
Altcoin Rank #1 – Original Crypto #117

 

What is the difference between Nano and Ethereum?

Ethereum is known as the best smart contract blockchain in the world where developers can build and launch Decentralized Applications (DApps).

The key differences between Ethereum and Nano are:

  • Market Cap – Ethereum is the second-largest cryptocurrency in the crypto space and has a market cap of nearly $500,000, while Nano has a market cap of over $727 million.
  • Use for tokens – ETH can be used for transactions, and Ethereum also charges gas fees for the use of the platform. Nano's tokens are used to transfer value between accounts.
  • Distribution – Ethereum does not have a limited supply of coins, while Nano has a maximum supply of 133,248,298 NANO.
  • Consensus – Ethereum uses a Proof-of-Work method to reach consensus, with developments in progress to move to a Proof-of-Stake. Nano uses an Open Representative Vote, and a PoW is used within transactions to ensure that the network is not spammed with transactions.
  • Technology – Ethereum utilized Solidity as a programming language and allows for smart contracts to be run and decentralized applications created on its platform. Nano uses Directed Acyclic Graph (DAG), Open Representative Voting, and Block Lattice.
  • Transaction Speed – Nano can process 10,000 transactions per second, and blocks are validated within a few milliseconds, while Ethereum's block time is between 10 and 15 seconds, with 30 transactions processed per second.

 

Ethereum is the best platform where DApps can be built and where smart contracts are run, while Nano remains as one of the best options for secure, transparent, fee-less, fast transactions. Ethereum is used as a currency as well, but it is not as fast at processing transactions as Nano.

  Ethereum Nano
Price change 20/21 +880% +440%
Market Cap $480 Billion+ 727 Million+
Past Hacks None Sybil Attack March 2021
Popularity Very High Low
Altcoin Rank #2 #117

What is the difference between Nano and Zilliqa?

Zilliqa is well-known as a high-performance, and highly secure blockchain platform that enterprises can use, featuring a wide range of next-gen applications run from the blockchain.

Zilliqa was developed through academic research, and it features several prominent scientists, venture creatures, and many leaders across financial services.

Zilliqa has employed technology that conquers the many challenges that other projects face with scalability and security. The project also allows for real-world usability in several global industries, including finance, digital advertising, gaming, and many others.

Zilliqa became the first blockchain platform in 2021 that was successfully constructed on sharded architecture, and there are smart contracts written into the platform's programming language, Scilla, which makes it one of the most secure blockchain platforms in the crypto space.

Differences between Zilliqa and Nano are:

  • Nano is a payment network that allows for the transfer of value in a fee-lees, secure environment.
  • Zilliqa has smart contracts written into its code, and it is home to a wide range of decentralized applications, while Nano is not compatible with DApps. Nano also features Nano Contracts, which are a simplified version of smart contracts.
  • Zilliqa offers to stake and yield farming of its native token ZIL while Nano's supply of coins is fully diluted.
  • Nano uses DAG, ORV, and Block-Lattice technology, while Zilliqa is the first blockchain that was created based entirely on sharded technology.

 

Zilliqa is the best option for the transfer of value for larger organizations and enterprises, while Nano is better for the transfer of value for individuals who wish to transfer small amounts free of charge.

  Zilliqa Nano
Price change 20/21 +27% +440%
Market Cap $1.3 Billion+ 727 Million+
Past Hacks None Sybil Attack March 2021
Popularity Low Low
Altcoin Rank #87 #117

What is the difference between Nano and Nuo Network?

Nuo Network is a decentralized debt marketplace where users can interact with a wide range of Ethereum-based assets in various ways.

Nuo has lending products that can be used to provide capital to a pool, allowing the user to earn interest daily. Nuo also provides borrowing services where users can over-collateralize their loans, allowing them to trade using 3x leverage.

Nuo Network is non-custodial, and this means that the funds of the user do not leave their wallet, and it is never stored on Nuo Network or Nuo Exchange.

Nuo Supports 12 different Decentralized Finance (DeFi) tokens including, but not limited to DAI, WBTC, KNC, ETH, USDC, and many others.

 

What is the difference between Nano and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Nano, on the other hand, is fungible, which means that one NANO has the same value and characteristics as another NANO.

The market cap for Nano is over +$725 million, while the NFT market is expected to rise to over $1 billion by the end of 2021.

NFTs consist of any digital collectables such as art, games, video clips, and many other tokens that often sell for millions at auctions.

 

What is the difference between Nano and Cardano?

Cardano, like Ethereum, is a smart contract, a DApp platform that can be used for many real-world applications that improve several industries and sectors in the world.

Nano provides true decentralization because its supply of coins is fully diluted and distributed, for no need to mine and release new coins into circulation.

In addition, Nano is also a feeless platform where users can perform transactions instantly. It is also an eco-friendly cryptocurrency that limits its impact on the environment, and it is also a weightless network.

Cardano is one of Ethereum's many competitors because of its improvements in the technology upon which Ethereum was built, offering faster transactions and redistribution of power from unaccountable structures to individual margins.

Cardano aims to create a fair, transparent, and secure society, and it aims to allow for a wide range of DApps and smart contracts to be developed with modularity.

Nano is better as a medium of exchange that is fee-less, instant, and secure, while Cardano is better as a smart platform where DApps and smart contracts can be built and launched, paving the way forward for DeFi.

  Cardano Nano
Price change 20/21 +2,100% +440%
Market Cap $73.7 Billion+ 727 Million+
Past Hacks None Sybil Attack March 2021
Popularity Very High Low
Altcoin Rank #4 #117

 

What is the difference between RaiBlocks and Nano?

There is no difference between Nano and Raiblocks because Raiblocks rebranded to Nano in 2018. One of the reasons for the renaming was that people had difficulty in pronouncing the “Rai” in the name, whether it would be pronounced “ray” or “rye” or whether the name should just be called. “Rai” instead of “Raiblocks”.

The development team consulted the Raiblocks community, and it was decided that the new name would represent the simplicity of the project, its purpose, and its speed, which is how the team decided on “Nano”.

The new logo of the cryptocurrency features several nodes that represent the block-lattice design of the network, connecting to form the letter “N”.

 

What happened to Raiblocks?

In 2018, Raiblocks was rebranded to Nano to represent the purpose and characteristics of the network and the project, namely micropayments and fast execution speeds.

 

What is a stablecoin?

A stablecoin is a cryptocurrency that offers increased price stability by pegging its market value to another source, such as gold or the US dollar.

Stablecoins serve as a bridge between the cryptocurrency world and paper or fiat currencies. By using the flexibility that digital currencies offer in combination with the stability of traditional assets, users can benefit from security, instant transaction settlements, and more.

Stablecoins can be divided into three main categories, namely:

  • Fiat-collateralized stablecoins – these stablecoins are the most common type. They are backed by major currencies such as the Euro, GBP, or the United States Dollar. Stablecoins that are fiat-collateralized are pegged to a currency in a ratio of 1:1, where one stablecoin is equal to one unit of the currency to which they are pegged, for example, Tether, USDC, and others.
  • Commodity-based stablecoins – these are backed by other kinds of assets such as precious metals, especially gold, oil, real estate, and other forms of commodities, for example, Digix Gold (DGX), which is backed against physical gold.
  • Crypto-collateralized stablecoins are backed by other cryptocurrencies. These stablecoins are more decentralized and tend to be over-collateralized, allowing them to absorb collateral more effectively.

 

Is Nano considered a Stablecoin?

No, Nano is not considered a stablecoin. Nano is a decentralized, open-source, peer-to-peer digital currency and a medium of exchange.

Nano's native token, NANO, is not pegged to any other currency, commodity, or cryptocurrency and therefore, it is not considered a stablecoin.