Hackernoon logoVisualizing How NANO Works by@lucasols

Visualizing How NANO Works

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@lucasolsLucas Santos

NANO (formerly RaiBlocks) is a cryptocurrency based on DAG and block-lattice data structure, a new technology, different from bitcoin and all other cryptocurrencies. Eliminating the need for mining and allowing virtually instantaneous and zero-rate transactions. Here are some simple animations showing some design features of NANO.

Block lattice visualization

NANO has one block chain for each account which is controlled by the account’s private key and each block chain is replicated to all peers in the network, we call this arrangement a block lattice.

Balances are transferred between block chains through send and receive blocks. Send blocks reduce the balance of an account and marks the delta as receivable by an account number. At a later time the receiving account creates a receive block which increases the balance of their account by the delta.

More details: https://github.com/clemahieu/raiblocks/wiki/Block-lattice

Ledger pruning (in development)

Since each account operates on its own block chain, lite peers are able to do much more selective and aggressive pruning of the block chains. Only bootstrap or peers interested in doing full ledger validation actually need to store the full ledger history.

P.S: The video just shows a visual example of the general idea and is inaccurate.

More details: https://github.com/clemahieu/raiblocks/wiki/Design-features

Double spending and confirmation

This is short animation showing the process of confirmation and fork resolution (Double spending).

NANO uses Proof of Stake, instead Proof of Work, as consensus protocol. In a PoS system, participants vote with a weight equivalent to the amount of wealth they possess in a given cryptocurrency. With this arrangement, those who have a greater financial investment are given more power and are inherently incentivized to maintain the honesty of the system or risk losing their investment. PoS does away with the wasteful computation power competition, only requiring light-weight software running on low power hardware.

More details: https://github.com/clemahieu/raiblocks/wiki/Double-spending-and-confirmation

Some GIFs extracted from the videos: https://imgur.com/a/Uozo2

For more information, see the wiki or read the NANO whitepaper

Hint: Use shift + < to decrease the speed of youtube video playback

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