Nano Coin Might Save The Whole Cryptocurrency System and Here Is Why
Most of the cryptocurrencies are energy-intensive by design. This means that for these decentralized, unregulated coins to function and for users to make transactions, they must be mined by millions of computers all around the world.
Mining in itself is a process that requires powerful computers and lots of energy to solve complex numerical problems. It is like creating new blocks in the blockchain while receiving rewards paid for example, in Bitcoins. This has created a financial network that uses more energy which is said to be greater than the entire country of Argentina, with no regulatory system whatsoever.
To solve this problem, miners choose to move to countries where the cost of electricity is cheaper. In China alone, at some point there was an average of 109,000 active crypto mining IP addresses on a daily basis (Source: CNBC), making it the country with the most Bitcoin miners in the world by mile (Source: Reuters). But with increased Bitcoin prices, mining has become way more profitable, leading to the entrance of new miners, and making the process more difficult and energy-consuming.
There are countries that have banned Bitcoin mining completely, such as Kosovo, as it deals with a power crisis. Moreover, Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China have all completely banned cryptocurrency as well (Source: Fortune.com).
But what if there is another coin that avoids this and many other problems? Let me introduce you to Nano.
What is Nano?
Nano is a decentralized cryptocurrency based on an Open Representative Voting consensus mechanism, as called by its creating team. It was created to solve some scalability issues that Bitcoin and Ethereum were facing, such as high transaction fees, intense energy mining, and slow transaction times.
Nano has less data storage and short confirmation time; thus, it works perfectly as a medium of exchange. No money is lost either when storing value in Nano because of the lack of transaction fees and inflation. The energy usage of a single nano transaction has been calculated as low as 0.111W and currently, there are only a few hundred machines needed to power the network, according to their website. Additionally, Nano adds value to everyone around the world. People experiencing hyperinflation (like Venezuela) and corrupt governments (like many low—income countries) find this means of exchange safe and reliable.
How does it work?
As mentioned above, the cryptocurrency is based on an Open Representative Voting consensus. The mechanism is similar to the proof-of-stake system, where the holders of the coin can choose delegates to vote for them. They don’t have to compete to solve the next block in the blockchain, but their representatives confirm their transactions on their behalf. The more tokens the user has, the bigger the weight of the voting.
Nano also uses a directed acyclic graph (DAG) which means that every token holder is contributing to their own individual blockchain known as “account chain” which is processed instantly, instead of the entire ledger of transactions that everyone can access. This also expedites the processing time and makes transaction confirmations run faster.
Tell me more! What is the price history?
Nano reached its all-time high on January 1, 2018, at the price of $33.7. During that time Nano was the most used digital asset in Venezuela because of its near-zero fees and fast transactions during the country’s financial crisis.
The cryptocurrency has a fixed total supply of 133,248,297 nano. To distribute as many tokens as possible when it first launched, nano was dispensed free of charge from “an online faucet”. Users would need to solve complex Captcha tests to receive the tokens. Captcha tests are online tests that include distinguishing different objects in images, such as finding traffic lights in 9 different images. This made it possible for people around the world including lower—income countries to own a few tokens and have access to a digital asset that is immune to inflation.
What’s the downside?
The crypto has been a victim of an unusual system hack, but not only. In 2020, Francesco Firano, the founder of Bitgrail, publicly announced that 17 million tokens were stolen from the blockchain by hackers. Two years later, it was found that he had stolen the tokens himself and had tried to convince the Nano team to alter the ledger (Source: Avvenire.it). Later in 2021, Nano’s blockchain was also attacked with spam where the users were stopped from sending transactions on the blockchain, but it was soon resolved.
What is the solution?
How much longer are we going to be able to afford mining blockchain cryptocurrencies?
Nano includes no mining and is extremely energy efficient. It contains zero fees, and its fast confirmation time makes it easy to use as a means of exchange. Although it has had a few dark moments in its history, the world is heading towards more energy-efficient solutions. On the other hand, we are advancing further with stronger cyber security. With multiple countries already blocking the mining of different digital assets, people will want to be invested in more economical cryptocurrencies.
Lastly, Nano competes with the most well-known crypto like Bitcoin and Ethereum, in that it has almost zero fees, a fast confirmation process, and no mining whatsoever. The future is in energy-efficient solutions. Wouldn’t you like to be part of this powerful coin?
Disclaimer: I am not a financial advisor. Do your own research. Please consult a professional investment advisor before making any investment decisions.
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