The cryptocurrency market has exploded in 2021 majorly because of the unique offering it has. The payment ecosystem is dominated by centralized institutions with the aim of exploiting users in order to maximize their profits. The blockchain technology was initially looked at with a skeptical lens. However, it soon became clear that cryptocurrencies is the way to break free from the web of corporate institutions. Cryptocurrencies offers near-instant transactions with reduced fees processes through a decentralized network.
However, cryptocurrencies like Ethereum which have an established reputation in the market have issues of the own. Ethereum and Bitcoin has somewhat failed to deliver what they promised. Bitcoin is regarded as more of a store of value than transactional means and Ethereum suffered from exorbitant transaction fees. These projects have also not been able to achieve their goals of scalability.
This is where Nano steps in. Nano addresses many of the major issues that market leading cryptocurrencies possess. This makes Nano an interesting project to look into.
What is Nano?
Nano was created by Colin LeMahieu through The Nano Foundation which is headquartered in the UK. Nano was originally incepted as RaiBlocks in 2014. However, the cryptocurrency rebranded in 2018 to what we today know as Nano.
Nano regards itself as the “digital money for the modern world”. The cryptocurrency was designed to solve the problems of not just centralized payment institutions but also many major cryptocurrencies. The architecture of the network makes nano secure and fast. Moreover, Nano also has the aim to make the technology more accessible and; hence, does not have any transaction fees.
What makes the network special?
The architecture of the network is interesting, to say the least. Each account on the network has a blockchain of its own. The owner of the account has complete freedom to update his or her blockchain as per their wishes. For transactions, the account owner has to first sign the transaction, update their ledger and then broadcast it to Nano’s network. Nano then validates the transaction once enough confirmations are seen. This also enables the network to not focus on each individual block but rather the overall account and its balances which makes it more efficient.
This technology is known is Block Lattice. The team claims that it enables the network to have a higher degree of security compared to other blockchains as well as increased scalability. The unique proposition of the network coupled with its strong fundamentals make Nano a strong contender for becoming the major mode of payment in the crypto world.