Nano (cryptocurrency)

Source: Wikipedia, the free encyclopedia.
Nano
proof-of-stake
Hash functionBlake2
Issuance scheduleCaptcha faucet (ended 20 October 2017; 6 years ago (2017-10-20))
Supply limit133,248,297
Website
Websitenano.org
  1. ^ Compatible with ISO 4217, though is not approved

Nano (Abbreviation: XNO) is a cryptocurrency characterized by a directed acyclic graph data structure and distributed ledger, making it possible for Nano to work without intermediaries. To agree on what transactions to commit (i.e., achieving consensus), it uses a voting system with weight based on the amount of currency an account holds.[2][3]

Nano was launched in October 2015 by Colin LeMahieu to address the Bitcoin scalability problem and was created to reduce confirmation times and fees.[4] The currency implements no-fee transactions and achieves confirmation in under one second.[5]

History

Colin LeMahieu started the development of Nano in 2014 under the name "RaiBlocks".[1][6] A year later, RaiBlocks was distributed for free through a captcha-secured faucet.[7] In 2017, after 126,248,289 RaiBlocks were distributed, the faucet shut down. This fixed the total supply to 133,248,297 RaiBlocks, after addition of a 7,000,000 RaiBlocks developer fund.[8]

BitGrail hack

On February 9, 2018, an Italian cryptocurrency exchange BitGrail announced its hack and eventual shutdown.[9] Users were prevented from accessing assets stored on the platform, which was collectively worth 17 million Nano.[10] The victims then launched a class-action lawsuit against BitGrail owner Francesco Firano for recoupment, inside the Florence Courthouse. The exchange was ruled to be guilty in January 2019, as it was found to fail at implementing safeguards and reporting losses.[11] The Italian police branch Network Operations Command (Italy) alleged the Bitgrail founder had conducted fraud.[12] Nano prices had been around $10 prior to the hack and after the hack fell to $0.10.[13]

Design

Nano uses a block-lattice data structure, where every account has its own blockchain for storing transactions.[14][15] It is the first cryptocurrency to use a directed acyclic graph data structure,[16] by having a "block" consisting of only one transaction and the account's current balance.[17][14]

Nano's consensus algorithm is similar to proof of stake.[18] 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.[19]

If two contradictory transactions are broadcast to the network, indicating a

double-spend attempt, nodes will vote for both transactions and broadcast their vote to the other nodes. The first transaction to reach 67% of the total voting weight is confirmed, while the other is considered invalid.[20][non-primary source needed
]

References

  1. ^ a b Baldwin, Rosecrans (2019-11-26). "Cryptocurrency Will Not Die Archived 2020-12-03 at the Wayback Machine". GQ. Retrieved 2020-12-22.
  2. S2CID 220667938
    .
  3. S2CID 13741873
    .
  4. S2CID 158896456
    .
  5. S2CID 209471367
    .
  6. ^ Github (2014-05-01). "[1] Archived 2020-10-16 at the Wayback Machine". Github. Retrieved 2022-21-09.
  7. S2CID 50774787. Archived from the original on 2022-04-03. Retrieved 2022-02-11.{{cite book}}: CS1 maint: location missing publisher (link
    )
  8. ^ Wall Street Journal (2018-03-03). "Crypto Investing Comes With a Big Risk: The Exchanges Archived 2018-03-07 at the Wayback Machine". Wall Street Journal. Retrieved 2022-09-23.
  9. ^ Morris, David (11 February 2018). "BitGrail Cryptocurrency Exchange Claims $195 Million Lost to Hackers". Fortune. Retrieved 22 October 2022.
  10. ^ 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.
  11. ^ 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.
  12. ^ "Italian police accuse cryptocurrency exchange boss of huge fraud". Reuters. 21 December 2020. Retrieved 22 October 2022.
  13. ^ Hatmaker, Taylor (12 February 2018). "Italian cryptocurrency exchange gets hacked for $170 million in Nano". Techcrunch. Retrieved 22 October 2022.
  14. ^
    S2CID 108390582
    .
  15. doi:10.1109/COMST.2020.2969706
    .
  16. S2CID 199057702
    .
  17. ISBN 978-1-61208-781-8
    .
  18. doi:10.1109/MCE.2021.3060720
    .
  19. doi:10.1109/ICCES48960.2019.9068183
    .
  20. ^ Nano. "Protocol Design - ORV Consensus". nano.org. Archived from the original on 20 February 2021. Retrieved 27 February 2021.
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