Nano 101 (formerly Raiblocks) – Scalability unlimited?
Nano is a low-latency cryptocurrency that uses the new block-lattice architecture and the famous Proof of Stake voting. In its new structure, Nano gives each account its own blockchain. It also offers unlimited scalability, feeless transactions that are instant and peer-to-peer. It is the 20th largest cryptocurrency, with a total market cap of $2.6 billion currently. The aim of this network is to resolve the issues of traditional ledgers.
Recently, the Blockchain community has been facing some serious problems. Due to the popular demand for famous cryptocurrencies, their limited scalability has increased the average transaction times and fees. This has led to dissatisfaction in the community. Thus, the aim of building raiblocks is to solve these issues. This blockchain network will allow users to carry out instant, feeless and scalable transactions; something that traditional blockchain networks have failed to provide.
The Block Lattice of Nano
Raiblocks has introduced new block-lattice architecture as its blockchain design. This new infrastructure would give each account its ‘own blockchain’. In every account’s blockchain, one block would contain just one transaction. A send transaction would deduct one block from the account and a receive block would add one block to the account holder’s blockchain.
Also, these send and receive activities are asynchronous. They do not need to occur at the same time. If one account has sent a block to another, but the receiver is offline, he will receive the block only when gets online again. Transactions will be completed in the knowledge of both parties.
Scalability, Security and No Fees
Having each blockchain for each account provides unlimited scalability to each account holder. Till date, the Nano network has carried out a total of 4.2 million transactions with a ledger size of only 1.7GB. This is very low when compared to other popular and large cryptocurrency networks. Also, providing a blockchain to each user gives them an almost instantaneous speed. When transaction speed of other networks, such as Bitcoin are compared, it is seen that while Bitcoin takes an average of 164 minutes to transact, transactions on Nano is almost instant.
The transactions are also feeless and independent of block-size pricing issues on Nano. (While it is $10.38 on an average on Bitcoin)
Moreover, unlike other networks, Nano only keeps a record of the account’s balance on its ledger, instead of full history like other networks. It keeps transactions record of account balances instead of the amount, which solve database issues without compromising users’ security.
Consensus without Mining
In traditional ledgers, the whole network works on a single blockchain and everyone keeps adding blocks to it. So, a consensus is required among miners to organize and verify votes. However, since each account has its own blockchain in Nano, this process of verification becomes unnecessary. So, the issue related to consensus is solved.
Proof of Work vs. Proof of Stake
Another very important feature of Nano is the use of the famous Proof of Stake instead of Proof of Work. Proof of Stake has emerged as a famous contender in the blockchain community. It leads to actual decentralization and energy efficiency on the network.
Proof of work (PoW) is related to mining on the blockchain, which is how most cryptocurrencies work. To generate a proof of work, a computer has to solve a problem. Upon cracking the problem, the solution is verified and published along with the transaction. The owner of the computer collects transaction fees and rewards for mining.
Firstly, this leads to unfair competition over the network. In blockchain, legitimacy is achieved through consensus among miners. But in PoW networks, those with more computational resources are given more power. Size leads to power. So the incentive turns not into the financial growth of the system, but unfair competition among miners to grow. This prevents the actual growth of the network. Also, the whole process of PoW mining consumes too much energy.
Whereas, Proof of Stake (PoS) is the new approach to the blockchain. The core concept behind PoS is to actually incentivize the blockchain and minimize wastage of electricity in mining. In PoS, the weight of vote is given to financial holdings of a person. So, the wealthier miners are incentivized to grow the system and maintain honesty, in order for their own financial growth. This eventually leads to the growth of the network. Also, PoS much less energy than PoW.
Earlier, Nano was called Raiblocks. However, the developers decided to change its name only recently. This is because of the difficulty people faced in pronouncing the old name “Raiblocks”. Its core team believes that this virtual currency aims for quickness – to make transactions quick. “And the name Nano does just that.” Also, this ledger wants to simplify and smoothen blockchain. So its name should be simple too, to reflect its simplicity.
The core team has also revealed plans to introduce a desktop and ioS mobile wallet later in 2018 to adapt for better changes. The coin has already added to new exchanges like Kcoin and Bit-Z.
With its constant aim to improve the world of Blockchain, both Nano’s innovations and prices indicate an optimistic future.