Nano Blockchain: What It Is, How It Works, and Its Benefits
The world of technology is constantly evolving, and we need to stay updated with it. Blockchain technology has attracted organizations from every sector, and they expressed an interest in adapting to blockchain technology by using cryptocurrencies, decentralized finance, smart contracts, and more.
Nano blockchain is one such blockchain trend that is gaining momentum due to its peer-to-peer transaction functionality. The Nano is designed for the dedicated reason, which is providing high-performance cryptocurrency. It does not take any fees, and it can work on low-power hardware too. This article will help to understand what is a Nano blockchain along with its detailed benefits.
What is Nano Blockchain?
The Nano is a cryptocurrency that is designed for better efficiency and performance. The vision of the Nano is the same as the other cryptocurrencies, but Nano provides all the transactions with no fees. When it was launched in 2015, the initial name was RaiBlocks, and in 2018, it was changed and rebranded as Nano. Nano is an open-source and decentralized-based cryptocurrency. There is no intermediaries present due to the distributed ledger approach followed by Nano.
Nano is one of the highest performing cryptocurrencies, and it uses the novel type of Direct Acyclic Graph (DAG) algorithm base architecture calls as the block-lattice. It is designed to enhance the already implemented blockchain model in cryptocurrencies like Bitcoin. The receiving address must sign the transaction to confirm that it has taken place when a user sends funds on the lattice blockchain. The transaction becomes pending when it is only signed by the sender resulting in an unsettled transaction. The resultant balance is recorded as a new block, replacing the old one.
It is developed using the Direct Acyclic Graph (DAG) algorithm but employs its novel technology called block-lattice architecture. Every individual is assigned their blockchain, provides quicker transactions, and maintains its decentralized system. It is one of the highest-performing cryptocurrencies.
What is Block Lattice?
The Nano uses the novel type of Direct Acyclic Graph (DAG) algorithm base architecture calls as the block-lattice. It is the key innovation of the Nano cryptocurrency. Because of this architecture, individuals have their blockchain, which they can control by using the private key. It is designed to enhance the already implemented blockchain model in cryptocurrencies like Bitcoin.
One of the best features of the block-lattice is its fastest transactional rate. And user can check their account balance. The benefit of this block-lattice architecture is that it can provide high performance without colossal energy consumption. It helps Nano to work even in low-power hardware also.
How Does a Nano Work?
Nano transactions require the sender’s and receiver’s transactional comments during a transactional process. After this step, signals convey that the transaction is completed and therefore can be settled. The transaction is said to be in the pending stage when it is only signed by the sender, resulting in an unsettled transaction. The transaction will be recorded on the main chain after the receiver signs it, and there is no need to check transactions.
The lattice block structure also consists of a feature called User Datagram Protocol (UDP). These are transactional packets that allow you to send funds to offline accounts and maintain computational costs low. Considering Nano, each transaction is an independent block, and every successive block replaces the older block stored in the accounting chain.
Every new transaction takes the current balances in the user’s account and records them as part of the new transaction to have an accurate ledger history on the block-lattice chain. It replaces the old balance with a new one, recorded on the main Nano chain.
The account chain would verify the transaction by considering the difference between the send block and the immediate balance. The resultant balance is recorded as a new block, replacing the old one. Now, both of our account chains have new, updated balances. The block-lattice system allows the Nano framework to maintain the records of current account chain balances on the Nano ledger.
It is not like what traditional blockchains or distributed ledgers do. Instead of having the entire transaction history hogged onto the main ledger, the Nano protocol only records account balances.
How Nano Improves Crypto Usage
Nano is the ideal cryptocurrency from a user’s perspective as it is free of fees, transactions are instantaneous, and can scale infinitely. The quick transaction time is a change over the most popular cryptocurrency, and Bitcoin transactions can take days to transfer if there is huge network traffic. This could be because each block only has space for so many transactions, and it takes 10 minutes for each block to be mined.
Nano can easily do this by making every transaction its block and by having blocks instantly processed. An attacker would need to control half of the Nano tokens to create a network attack, which requires a considerable sum that is not friendly to everyone.
The dPoS system avoids the huge energy consumption and expensive mining hardware required by Proof of Work cryptocurrencies.
Benefits of Nano
1. Easy to use and Feeless
By design itself, Nano is simple and easy to use. The Nano network can offer feeless transactions by aiming to transfer value as efficiently and provide options for users and services to enable the empowering and cost-saving qualities of digital money easily.
Today’s world puts more effort into reducing pollution and energy consumption. Many digital money networks have resorted to wasteful designs to secure their networks. Nano is sharply designed to uses a weight-less and efficient consensus protocol called Open Representative Voting (ORV) for minimal energy usage instead of depending on the power consumption mining for security.
Digital money should be fast and easy to access. There is no need to wait for a long time to complete transactions to buy goods at a store, make payments online, etc.. Nano transactions can make work easier. These are fully settled payments on the network, those who do businesses no longer have to wait for credit card or banking network approval.
The block-lattice system allows the Nano framework to maintain the records of current account chain balances on the Nano ledger. Instead of having the entire transaction history hogged onto the main ledger, the Nano protocol only records account balances. Nano transactions can make work easier and faster.
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