- It promises to offer a censorship-resistant and eco-friendly alternative to Bitcoin.
- The transactions on its network take place very fast.
- The community-driven consensus mechanism is focused on ease of usage.
- There is nothing like a transaction fee.
- It has a scalable and flexible architecture in place.
- Its DPoS Blockchain network is lighter on the environment.
- Not immune to unpredictable price rise and fall affecting the crypto sector.
- Yet to gain popularity as other rivals.
- Hard to buy if you have only fiat currency.
With time, newer types of cryptocurrencies are hitting the market. Usually, these new generation crypto coins have some unique points to woo the target buyers. You will find them being linked with tangible assets and some such crypto projects come with promises that target people looking for newer digital investment options. One such new contender in this realm is Nano coin. While the project is being hailed as the alternative to Bitcoin, it is necessary that you learn its details before deciding to invest.
The basics and origin of Nano coin
The Nano coin project was earlier called RaiBlocks. The project has garnered traction and support owing to its economical, user-friendly, and practical approach. As per the project whitepaper, Nano coin is designed to replace fiat currency-much like Bitcoin. It may not be as popular as the latter but the Nano coin is hogging headlines for its speed and flexibility. Its value growth in 2 years has also worked in its favor.
Nano coin is among the most promising new generation altcoins. It comes with an uncomplicated network. The project aims for frictionless payments and instant transactions minus charges. This platform relies on a consensus mechanism that needs fewer uses for transaction authentication. So, Nano coin does not need huge processing power and this is where it gets an edge over many other competing crypto projects. The project is designed to promote eco-friendliness. In a nutshell, it promises to resolve the limitations associated with Bitcoin.
The origin of Nano Coin can be traced to 2015. A veteran software engineer named Colin LaMahieu launched the original project. As the original name aka RaiBlocks did not resonate much with target buyers, they opted for rebranding. The relearning proved to be beneficial for the project, eventually.
The unique aspects of Nano coin
From its inception, Nano coin made headlines owing to the uniqueness of concept and approaches taken by the core team. At the launch, they gave the coins for free and did not hold an ICO. They made Nano using a DAG model. It records crypto balances only and so fewer data has to be stored. You can think of it as a computer with a reduced number of files and a more robust CPU. Bitcoin, for example, records all transaction data on one ledger and everything taking place must be verified using consensus mechanisms. This leads to considerable resource consumption and delay in processing. Nano Coin does not suffer from these caveats.
Nano coin makes use of a mixed and advanced algorithm- which is a mix of PoW and PoS. It is known as DPoS. Nano coin scores over other rival crypto coins owing to its unique operational model- referred to as DAG- directed acyclic graph. DAG is very scalable but not as safe as traditional Blockchain systems. Nano simply stores outgoing and incoming transaction data in blocks in the user’s personal Blockchain. So, your wallet balance is updated as well as secure. The Blockchain also works as it should.
You may be curious as to how the Nano coin network evades charging the users for making transactions? Well, the network spreads the charges across the bandwidth and hardware providers. The enhanced staking mechanism leveraged by the network validates the network state and not the miners. This makes it lighter on resources. The stakers do not compete with one another. It is very fast and a transaction takes less than 5 seconds to be completed.
What about the Nano token?
NANO is the ecosystem’s main utility token. As a user, you can send the token anywhere minus any charges. You can use the NANO holdings for voting on behalf of the elected representatives, using the community governance system. The total number of NANO coins is pegged at 133,248,297.
The price of the Nano coin has surged and nosedived a number of times since its inception. While this is common for almost all cryptocurrencies, it has shown more drastic rise and fall patterns compared with many other contenders.
Should you invest in Nano Coin?
It is hard to pinpoint any crypto coin that can be called flawless or the best! Nano coin was designed to address the core limitations of Bitcoin. It succeeds in addressing those limitations- namely speed and usage fee. The mixed consensus mechanism helps reduce transaction processing and fee-less processing will help in wooing more buyers. The operating procedure is more scalable and flexible. Overall, the Nano coin scores over many rivals as it has well-defined goals and a simplified working mechanism in place.
However, that does not mean you should overlook its caveats! The price rise and fall pattern for Nano coin have been erratic. The price rise can happen again but no one can say when it will happen and for how long that will persist. It lacks support for fiat currency which can be a drawback to those who are new to crypto sector. You can keep it as a part of a diversified crypto investment portfolio. Eventually, it is better suited for people with some knowledge and experience in the cryptocurrency sector. The team needs to focus more on promotion and branding alliance.