What Is Nano & How Does It Work? Who Created XNO? (2024)

What is Nano (XNO)?

Nano (XNO) is a decentralized peer-to-peer cryptocurrency system for payments that enables cost-effective and fast transactions on the ledger. Thanks to the use of a block-lattice data structure and a special system for decentralized voting, Nano enables users to receive and send transactions in NANO within seconds.

Projects like NANO cryptocurrency are known as altcoins, or alternative coins, given the fact that such cryptocurrency networks aim to offer solutions for the limitations and weak points of the first crypto to ever be created – Bitcoin (BTC). Bitcoin uses a Proof of Work consensus mechanism and relies on miners to validate blocks and transactions, which takes a substantial amount of energy and computational power, making transactions expensive. Microtransactions with Bitcoin may take hours to get verified and processed, while transaction fees for such transfers can be rather hefty.

Nano addresses this issue with its technology and different technical approach that is also based on blockchain and decentralized infrastructure, much like Bitcoin, but with substantial differences in the choice of consensus mechanism.

Nano also establishes decentralization and peer-to-peer functions through voting. NANO holders can vote for representatives who operate as validators. NANO is the native crypto of the network and is used for transactions and voting. Transactions on the Nano ledger are free.

How Does Nano Work?

Nano is based on the Open Representative Voting system and block-lattice data structure, unlike platforms with more traditional and more energy-intensive protocols, like Proof of Work.

Block-lattice data structure is the key to Nano’s innovative technology as it allows the network to split the ledger into smaller chains. Each user’s account has its own blockchain that updates immediately with every transaction, so the user doesn’t have to wait for the entire network to synchronize. This technology is what makes transactions instant.

The Open Representative Voting system is a variation of the Proof of Stake protocol that usually relies on stakers to secure the network and verify transactions. Nano enables NANO holders and account users to vote for representatives who act as validators. Validators confirm blocks and validate transactions on the network, keeping it secure and stable. Thanks to this consensus mechanism, Nano is environment-friendly, fast, and cost-efficient.

Nano also allows payment integrations with access to the Command Line, running a node, and offers a great array of tools for users to create their own payment solutions.

Who Are the Founders of Nano? (History of Nano)

Nano was originally released under the name RaiBlocks (XRB) in 2014 through a public offering where users could get XRB coins by completing Captcha challenges. Users could complete as many challenges as they liked and their efforts were rewarded with XRB coins.

Nano rebranded in 2018 as a peer-to-peer payment system that allows users to make fast transactions and payment integrations with NANO cryptocurrency. Nano was founded by the CEO and founder of the Nano Foundation, Colin LeMahieu. LeMahieu is a software engineer based in the United Kingdom.

The idea behind the project is to enable easy and fast transactions in a cost-effective way and within a decentralized environment. The project’s functionality and the speed of the network could also bring NANO to mainstream use.

What Makes Nano Unique?

Perhaps the most notable trait that makes Nano unique is the speed of the network and its instant finality for transactions. Unlike the majority of cryptocurrency networks in the market, almost every Nano transaction is validated and executed within a second or less. In comparison, many other popular networks and P2P payment systems take anywhere from several seconds to minutes.

With payment integrations in combination with instant finality, Nano makes a great solution for sellers all over the world. With Nano integrations, sellers can receive payments without delay. Instant finality also increases the chance of NANO becoming a commonly used cryptocurrency for payments.

Another thing that makes Nano unique is the fact that the network doesn’t charge any fees on transactions. Free transactions are enabled because representatives chosen by users don’t receive any compensation for their participation. That is how Nano provides a perfect solution for micropayments.

What Gives Nano Value?

Nano draws its value from its technology, technical capacity, and utility. These qualities determine the intrinsic value of Nano, which matters in terms of adoption and mainstream use. The market price of NANO is affected by the volatility in the cryptocurrency market, while it is also subject to frequent changes caused by a multitude of factors.

The intrinsic value of Nano often doesn’t match the market value of the NANO, which can change greatly from one moment to the next. However, both market and intrinsic value depend on the rate of adoption and the number of active users or traders.

How Many Nano (XNO) Coins Are There in Circulation?

There are currently NANO in circulation out of a total of NANO. Nano has a limited supply which is already fully diluted, meaning that no new coins will be minted. The finite supply works in favor of protecting the value of NANO from inflation as the supply will remain constant forever.

The number of Nano coins in circulation multiplied by the current price of NANO equals the total market cap. The total market cap determines the rank of Nano, and also defines its market share and dominance.

Other Technical Data

NANO is the native cryptocurrency of the network and is used for making feeless payments on the ledger. NANO coins are also used as an intermediary in securing the network, as Nano account holders can use their NANO funds to vote for representatives. Representatives secure the network by validating transaction blocks.

Nano splits the network into smaller transaction blocks where every account holder has an individual blockchain for instant transacting. As of 2021, all NANO coins that will ever be created are in circulation – no new NANO should be minted.

How is the Nano Network Secured?

The block-lattice architecture ensures that no malicious action can go unnoticed, so the system records the transaction as a difference between the balance of the account and consecutive blocks’ balances. Every block contained within the lattice records transactions and updates the account to change its state accordingly, similar to how a bank account works. Only account holders can manage and update their blocks in the system where each new block replaces the previous one. Every block also has a small fraction of Proof of Work to prevent malicious activities.

In addition, the network is secured with the use of the modified Proof of Stake protocol, Open Representative Voting. ORV enables democratized governance where users can vote for representatives who validate transactions on the ledger.

How to Use Nano?

You can use Nano to send and receive the digital currency within the system with no fees involved or central authorities. Merchants can also integrate Nano payments with their payments systems so they can accept Nano for purchases with no delays.

NANO enables easy and fast transactions and is a perfect alternative for microtransactions when compared with Bitcoin, for example. The Bitcoin network requires large fees for micropayments because the system demands great amounts of computational power and energy to resolve the equation and verify the transaction. NANO presents a solid alternative peer-to-peer payment system, especially for microtransactions.

How to Choose a Nano Wallet?

There are plenty of places you could store your NANO and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of NANO for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of NANO or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your NANO, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your NANO tokens without hassle. Storing your NANO with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling NANO, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Nano Proof of Stake

Nano is not a mineable cryptocurrency as the network doesn’t depend on miners to validate transactions and secure the network. Instead, Nano is based on a variation of the Proof of Stake protocol called Open Representative Voting.

Although the Nano blockchain integrates parts of the Proof of Work protocol to bring additional security to the network, the Nano network is based on the PoS consensus mechanism.

Conclusion

Nano is one of the fastest and the most cost-efficient ways to send and receive payments in a decentralized fashion. Nano makes a perfect choice for microtransactions with zero fees for all payments made on the network.

Nano also offers seamless integrations with NANO payments so merchants can get paid in cryptocurrency in seconds, without delays caused by validation congestion. Thanks to this mechanism, Nano has the chance to become a mainstream payment method.

Join the crypto revolution and start your Nano journey today!

Nano FAQ

What are the benefits of NANO payments?

Using the Nano network is simple and eco-friendly, while NANO payments are feeless and instant.

Why didn’t Nano have an initial coin offering?

The team decided to issue coins as organically and fairly as possible through a faucet system that required people to solve Captchas. Participants therefore had to contribute their time and attention, instead of their money or computing power. This made NANO distribution more sustainable as it didn’t require large amounts of power, as well as making the cryptocurrency more accessible as people with no money could still attain NANO.

How to buy Nano?

Buying NANO is as easy as visiting Kriptomat’s how to buy Nano page and choosing your preferred method of payment.

How to sell Nano?

If you already own NANO and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Nano Price

Nano price is in constant flux and is subject to frequent changes and trend reversals, mostly due to the volatility in the crypto market. Nano price can change dramatically from lows to highs and vice versa within a relatively short period. You can check live Nano prices on Kriptomat.

As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of NANO is also affected by commercial partnerships and the number of people participating in the Nano network.

The current Nano price is EUR.

The 24-hour trading volume of NANO is EUR. NANO is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of NANO and a max supply of NANO.

Register now to begin your journey into the world of Nano and cryptocurrencies with with Kriptomat!

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