What is Nano?
NANO is a trustless low-latency cryptocurrency that uses the Directed Acyclic Graph (DAG) technology and block-lattice architecture. It allows every account to have a blockchain of its own. One of the key advantages of using DAG technology is limitless scalability and instant transactions with no fees. The lack of resource-intensive mining to protect the blockchain is what allows Nano to operate free of charge. Delegated Proof-of-Stake (DPoS) is the consensus method used by Nano.
Nano was designed on Directed Acyclic Graph (DAG) technology and uses a block-lattice architecture where each account has its own blockchain. Unlike blockchain’s that checks transaction amounts, Nano records account balances, and this allows for much smaller storage resources. Each blockchain can only be modified by its owner, meaning that individuals balance history and share it with the network. This design ensures each blockchain to be updated asynchronously. Each transaction is handled by the individual blockchain and there is no need for a consensus protocol.
NANO network is completely decentralized, guarantees immediate transfer of funds without fees, and is infinitely scalable. Each transfer on Nano’s network generates two different transactions.
The dual transaction model removes the need for miners, allowing quick and zero-fees transactions. Nano transactions take place outside of the main chain through UDP packets. It removes block capacity issues because nodes do not maintain a detailed copy of all transactions on the network.
Nano uses the Delegated Proof of Stake (DPoS) mechanism. If a disagreement occurs in regards to transactions, the network relies on the delegates who vote on which transaction is valid. All votes based on the balance of the account, users with greater balances having a higher voting weight. There is no possible mining threats and centralization problems. Nano delegates having (hold) a stake in the network, which promotes the security of the network's integrity. So-called representative nodes take on tasks such as verifying block signatures and voting for valid transactions in the event of a conflict.
The project is seeking to solve some of the fundamental issues that other cryptocurrencies are tackling. Nano's advantage is its infinite scalability, low-cost transactions, and speed. Nano can be used for:
Nano also uses Proof-of-Work as a part of the architecture, but not as a trust protocol. This is used as an anti-spam tool to deter attacks. Lack of fees means that an attacker could spam the network indefinitely, but with the implementation of PoW has a small amount of work associated with each block. This work takes 5 seconds to be produced and 1 microsecond to be validated. An attacker has to commit a large amount of computational power to an attack. The network also has methods for handling spam transactions.