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