What is Nano?
Nano (NANO) is a peer-to-peer digital currency that was formerly known as RaiBlocks (XRB).
It is a decentralized, open-source cryptocurrency with a guided acyclic graph (DAG) design that’s licensed under the FreeBSD License. It uses a distributed ledger with a block-lattice data system to run without the use of intermediaries.
Colin LeMahieu introduced Nano in October 2015 with the aim of solving blockchain scalability issues that can result in high transaction approval times and restrictive fees.
It has feeless transactions that usually complete in less than one second.
How does Nano work?
Nano uses a block-lattice data structure. It is the first cryptocurrency to be built on a decentralized acrylic graph (DAG). Each transaction includes the account’s existing balance, and each “bar” is only one transaction.
The Open Representative Voting algorithm, which is analogous to proof stake, is used to find consensus (ORV). The voting weight is assigned to accounts depending on the sum of NANO they own in this scheme, and accounts can then openly assign this weight to any node they choose.
As the network receives two conflicting transfers (as in a double spend attempt), nodes vote for one of them and broadcast their vote to the other nodes. The first transaction that receives 51% of the overall voting weight is authorized, while the others are discarded.
Nano will work without providing direct monetary rewards to users or validators thanks to this design.
Since some people profit indirectly from the network (cryptocurrency markets by trade fees, retailers avoiding credit card company fees, etc.), operating a node is a good way to maintain it safe and decentralized.
Since there is no clear desire to gain voting weight, this tends to prevent the centralizing tendency that conventional proof of work and proof of stake architectures provide.
What is the History of Nano?
Nano was first developed by Colin LeMahieu in 2014, under the label RaiBlocks. RaiBlocks changed its name to Nano on January 31, 2018.
Nano was first released for free in 2015 using a Captcha-based faucet. Since distributing 126,248,289 NANO, the faucet was turned off in 2017. This, along with a developer fund of 7,000,000 NANO, brought the overall supply to 133,248,297 NANO.
After being compromised, the Italian cryptocurrency exchange BitGrail declared its closure on February 9, 2018. Unaccounted losses of 17 million Nano were discovered in the platform’s wallets, blocking users from accessing their properties.
The plaintiffs requested redress in the Italian courts, and with the support of the Nano Foundation, filed a class-action lawsuit against BitGrail owner Francesco Firano.
After finding that the exchange has neglected to enforce any substantive safeguards to guarantee the protection of their customers’ funds and had failed to disclose losses as early as July 2017, the Court of Florence held Firano responsible for the losses in January 2019.