Nano (cryptocurrency)

Nano is a peer-to-peer open-source cryptocurrency. The currency is based on directed acyclic graph data structure and distributed ledger, making it possible for Nano to work without intermediaries. To agree on what transactions to commit, or forming consensuses, it uses a system called "Open Representative Voting" with weight based on the amount of currency they hold.[2][3]

Nano
Denominations
SymbolU+04FE Ӿ [lower-alpha 1]
CodeXNO[lower-alpha 2] (formerly NANO, XRB)
Previous namesRaiBlocks[1]
Precision10−30 (raw)
Development
Original author(s)Colin LeMahieu
White paper"Nano – Digital money for the modern world"
Initial release4 October 2015 (2015-10-04)
Latest releaseV23.0 / 17 January 2022 (2022-01-17)
Code repositorygithub.com/nanocurrency
Development statusActive
Written inC++
Developer(s)Nano Foundation
LicenseFreeBSD
Websitenano.org
Ledger
Timestamping scheme"Open Representative Voting", a form of proof-of-stake
Hash functionBlake2
Issuance scheduleCaptcha faucet (ended 20 October 2017 (2017-10-20))
Block reward0
Circulating supply133,248,297 Nano
Supply limit133,248,297 Nano
  1. Approximation of two-stroke "X"
  2. Compatible with ISO 4217, though is not approved

Nano was launched in October 2015 by Colin LeMahieu to address Bitcoin scalability problem. Solving the problem means that transaction fees and confirmation time under load can be decreased.[4] The currency implements no-fee transactions and achieves confirmation in under one second.[5]

History
Current logo of the Nano Foundation. It was used also for nano itself until change of ticker, symbol and logo change of 15th November 2021.

Colin LeMahieu started development of Nano in 2014 under its original name "RaiBlocks".[1] A year later, RaiBlocks was distributed for free through a captcha-secured faucet.[6] In 2017, after 126,248,289 RaiBlocks were distributed, the faucet shut down. This fixed the total supply to 133,248,297 RaiBlocks, after an addition of a 7,000,000 RaiBlocks developer fund.

BitGrail hack

A month later, on 9 February 2018, Italian cryptocurrency exchange BitGrail announced its hack and eventual shutdown. User was prevented from accessing assets stored on the platform, which was collectively worthed 17 million Nano.[7] The victims then launched a class-action lawsuit against BitGrail owner Francesco Firano for recoupment, inside the Florence Courthouse. The exchange was ruled to guilty in January 2019, as it was found to fail at implementing safeguards and reporting losses.[8]

Design

Nano uses a block-lattice data structure, where every account has its own blockchain for storing transactions.[9][10] It is the first cryptocurrency to use directed acyclic graph data structure,[11] by having a "block" consists of only one transaction and the account's current balance.[12][9]

Consensus is reached through an algorithm similar to proof of stake named Open Representative Voting.[13] In this system, the voting weight is distributed to accounts based on the amount of Nano they hold; accounts then freely delegate this weight to a peer (node) of their choice. No mining of cryptocurrency is needed.[14]

If two contradictory transactions are broadcast to the network, indicating a double spend attempt, nodes will then vote for either the transactions. Afterwards, they broadcast their vote to the other nodes for strictly informational purpose. The first to reach 67% of the total voting weight is confirmed, while the other transaction is discarded.[15]

References
  1. Baldwin, Rosecrans (2019-11-26). "Cryptocurrency Will Not Die Archived 2020-12-03 at the Wayback Machine". GQ. Retrieved 2020-12-22.
  2. Hrga, Alen; Capuder, Tomislav; Podnar Žarko, Ivana (2020). "Demystifying Distributed Ledger Technologies: Limits, Challenges, and Potentials in the Energy Sector". IEEE Access. 8: 2169–3536. doi:10.1109/ACCESS.2020.3007935.
  3. Bencic, Federico Matteo; Podnar Zarko, Ivana (2018). "Distributed Ledger Technology: Blockchain Compared to Directed Acyclic Graph". 2018 IEEE 38th International Conference on Distributed Computing Systems (ICDCS). pp. 1569–1570. arXiv:1804.10013. doi:10.1109/ICDCS.2018.00171. ISBN 978-1-5386-6871-9. S2CID 13741873.
  4. Easley, David; O'Hara, Maureen; Basu, Soumya (2019). "From mining to markets: The evolution of bitcoin transaction fees". Journal of Financial Economics. 134: 91–109. doi:10.1016/j.jfineco.2019.03.004. S2CID 158896456.
  5. Morais, Rui; Crocker, Paul; Melo De Sousa, Simao (2020). "A Tool for Implementing Privacy in Nano". 2020 IEEE International Conference on Decentralized Applications and Infrastructures (DAPPS). pp. 159–163. doi:10.1109/DAPPS49028.2020.00021. hdl:10400.6/7645. ISBN 978-1-7281-6978-1. S2CID 209471367.
  6. Bottone, Michele; Raimondi, Franco; Primiero, Giuseppe (2018-07-23). "Multi-agent based simulations of block-free distributed ledgers". Krakow, Poland: 585–590. ISBN 978-1-5386-5395-1. Archived from the original on 2022-04-03. Retrieved 2022-02-11. {{cite journal}}: Cite journal requires |journal= (help)
  7. Vigna, Paul (2018-02-10). "Cryptocurrency Worth $170 Million Missing From Italian Exchange Archived 2019-05-25 at the Wayback Machine". The Wall Street Journal. Retrieved 2019-12-18.
  8. Canellis, David (2019-01-28). "Italian court forces BitGrail CEO to repay $170M in 'lost' cryptocurrency Archived 2020-11-08 at the Wayback Machine". The Next Web. Retrieved 2019-12-18.
  9. Shahaab, A.; Lidgey, B.; Hewage, C.; Khan, I. (2019). "Applicability and Appropriateness of Distributed Ledgers Consensus Protocols in Public and Private Sectors: A Systematic Review". IEEE Access. 7: 43622–43636. doi:10.1109/ACCESS.2019.2904181. S2CID 108390582.
  10. Xiao, Y.; Lou, W.; Thomas Hou, Y. (2020). "A Survey of Distributed Consensus Protocols for Blockchain Networks". IEEE Communications Surveys & Tutorials. 22 (2): 1432–1465. arXiv:1904.04098. doi:10.1109/COMST.2020.2969706.
  11. Masood, Faraz; Faridi, Arman Rasool (2018). "Consensus Algorithms in Distributed Ledger Technology for Open Environment". 2018 4th International Conference on Computing Communication and Automation (ICCCA). pp. 1–6. doi:10.1109/CCAA.2018.8777695. ISBN 978-1-5386-6947-1. S2CID 199057702.
  12. Werner, Robert et al. (2020). "Anonymization of Transactions in Distributed Ledger Technologies". Twelfth International Conference on Adaptive and Self-Adaptive Systems and Applications. p. 69. ISBN 978-1-61208-781-8.
  13. Mercan, Suat; Kurt, Ahmet; Erdin, Enes; Akkaya, Kemal (2021). "Cryptocurrency Solutions to Enable Micro-payments in Consumer IoT". IEEE Consumer Electronics Magazine. doi:10.1109/MCE.2021.3060720.
  14. Khalifa, Amr; Bahaa-Eldin, Ayman; Sobh, Mohamed (2019). Blockchain and its Alternative Distributed Ledgers - A Survey. 2019 14th International Conference on Computer Engineering and Systems (ICCES). doi:10.1109/ICCES48960.2019.9068183.
  15. Nano. "Protocol Design - ORV Consensus". nano.org. Archived from the original on 20 February 2021. Retrieved 27 February 2021.
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