At first, I thought Nano was too good to be true.
3 min read
Nano is legitimately the ultimate cryptoCURRENCY. When I was researching what cryptocurrency to buy, I decided I wanted a crypto that had the best balance possible of the following attributes:
1. Decentralization – Censorship resistance is the most important aspect of cryptocurrency
2. Environmentally friendly – Consume minimal wasteful energy
3. Scalable – More TPS = better
4. Fairly distributed – This is important to prevent creators from dumping on the buyers
5. Fast – Faster transactions are more convenient than slow transactions.
6. Low transfer fees – Cheaper fees to send = better
7. Low inflation – Inflation devalues existing coins and creates potential sell pressure. It also incentivizes spending which is bad for the environment.
Below is a description of Nano in regards to the above attributes:
1.Decentralization
Nano has hundreds of nodes. The below image shows the decentralization of the bitcoin mining pools.
And this image shows the Nakomoto coefficient of Nano.
2.Environmentally friendly
Nano is as environmentally friendly as they come. Nano does not have mining. Below is a visualization of Nano’s power consumption compared to Bitcoins.
3.Scalable
Nano does not have a hardwired limit on scalability (aka transactions per second). Instead, Nano’s transactions per second are limited by hardware and bandwidth.
4.Fairly distributed
Nano’s distribution was not perfect, but it was very close. 95% of the Nano supply was given away for free for solving captchas. Approximately 5% was reserved for the development of Nano. It is estimated that about .2% of the Nano supply is still in the development fund. It is extremely important to have a fair distribution. Without a fair distribution, founders of cryptocurrencies could rug pull and sell the tokens they own, thus crashing the price. This image shows just how much better Nano’s distribution is than most cryptocurrencies:
5.Fast
Nano transactions reach finality in about .3 seconds! This is incredible. If you deposit Nano to an exchange, most exchanges will let you instantly trade and withdraw the funds. This is unlike a lot of cryptocurrencies which pretend to be instant, but exchanges know they can’t trust the funds until x confirmations, which takes anywhere from seconds, to minutes, to hours, depending on the currency.
6.Low transfer fees
Nano is feeless! Here is a visualization that compares Nano’s fees to other coins.
7.Low inflation
Nano has no inflation. This is phenomenal. Unlike most PoW and PoS coins which constantly have new coins getting minted, no new Nano will ever be minted. This is phenomenal because at $40K per Bitcoin, $36 million dollars in Bitcoin is minted every single day. A lot of this Bitcoin has to be sold to pay for mining costs. This is constant sell pressure on Bitcoin’s price which Nano does not have!
Below is an image that compares Nano’s inflation (and other features) to other coins.
One complaint I have heard about Nano is that it does not have smart contracts. This was an intentional design feature of Nano. By being simple, Nano is able to have faster transactions and less chance of exploitation (to this day, Nano has never had a double spend). I also personally believe decentralized finance is the number 1 use case of crypto (it is Bitcoin’s sole use case), and Nano does it better than any other cryptocurrency.
Here is a video showcasing Nano:
Nano in the Real World: Lightning Fast | No Fees | Global Payments
Disclaimer:
I did my best to post accurate information. If I made any errors, please let me know. This is not investment advice.
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