Nano Vs Stellar: Which Coin Should You Buy? Check Right Now
Investing in cryptocurrency is a very risky venture, and it is easy to lose money if you don’t know about the coin you are investing in. So, today we will give you a detailed comparison between Nano Vs Stellar to help you make an informed decision.
Table Of Contents
Nano is an open-source cryptocurrency that uses blockchain technology. It was developed by Colin LeMahieu who also founded the Nano Foundation. He launched the project in 2014 as RaiBlocks but changed the name to Nano in January 2018.
Nano is a software designed for free-of-charge currency transactions. Each account has its own blockchain, and the owner of the account can update it. To do a transaction, the account owner signs a transaction, and sends it to the Nano network. Nodes then independently verify the transaction, and add it to their copy of the ledger, updating their copy of it.
This allows the user to make a transaction without having to pay any fees.This differs sharply from other cryptocurrencies, because there is no limit on how many transactions can be added to the ledger. There are no fees associated with using the network. Users do not need to purchase anything to make transactions.
This means that everyone is free to use Nano without paying anything to get involved. Transactions happen quickly and easily, and the network grows larger every day. The Nano foundation keeps tabs on the global adoptions of the NANO currency on its official website, and it also publishes continuous updates on its technical roadmap.
Nano is a trust-free currency with low latency, and it doesn’t use a blockchain. Instead, it uses directed acylic graph technology and block lattice architecture. This makes each account have its own blockchain, something that no other cryptocurrency does. Consensus mechanisms are important tools for ensuring security and reliability. In this case, the consensus mechanism is delegated proof-of-stake.
This means that instead of miners having to solve complex mathematical equations to earn coins, users who stake their coins can vote for others to do the work. This allows the network to scale infinitely and quickly.
How does Nano work?
Nano uses Delegated Proof of Stake (DPOS). DPoS allows people to participate in the blockchain by delegating their coins to other participants. A person who delegates their coins to someone else gets rewards when the delegate performs well. This incentivizes people to perform well.
Nano’s key innovation is its design called “Block Lattice“. This design allows users to update their accounts instantly instead of waiting for the whole network to agree. Each account has its own blockchain that records and updates the current state of the account.
Transaction amounts are interpreted as the change in the account balance between two consecutive blocks. Every block in Nano includes a small proof-of work component. Spamming transactions are discouraged by this method. Only account holders can modify their accounts.
Nano is a very ambitious project with an amazing team behind it. They are currently working on making their platform extremely scalable and decentralized, which will enable them to scale much faster than other cryptocurrencies. Their goal is to achieve total decentralization.
Nano is an innovative cryptocurrency that solves basic problems faced by other cryptocurrencies. Nano enables micro payments, cross border payments, and is infinitely scalable.
Benefits Of Nano
1. Instant Payment – Nano transactions are instant and free. This means that you don’t need to wait hours or days for your payment to arrive. When you send money through Nano, it goes directly to the recipient.
2. Scalable Network – Nano can handle thousands of transactions at once. As more people start using it, the network scales. Blockchains are great for recording transactions but they’re too slow for everyday use. Lattices are better than blockchains because they allow you to isolate transactions. Transactions can be isolated and recorded individually on an account chain. This allows transactions to be processed faster and more efficiently.
3. Network latency – Independent account chains enable users to update their accounts asynchronously, without having to involve the entire network, thus eliminating the need for miners. Transactions are instant and with zero fee. Therefore, the network becomes more latent.
4. Energy consumption – Nano uses the delegated Proof of stake consensus algorithm to validate transactions, therefore reducing power consumption. Block lattice structure helps Nano nodes reduce energy usage.
5. Decentralized – The Nano ledger is distributed across all nodes and no single entity controls it.
Stellar is a decentralized peer-to-peer payment system that allows users to send money across borders instantly, cheaply, and without intermediaries. It was designed to move money quickly, reliably and at almost no cost to users. The Stellar lumens power the entire range of operations within the network.
Lumen (XLM) is the native token of the Stellar network. Lumens are used as a currency on the Stellar Network. They’re used by people who want to send money across the world.
Stellar blockchain is a decentralized, open source, and fast network. Transactions take about three to five seconds to be confirmed. Thousands of transactions can be processed per second. Stellar blockchain supports multi-sig and smart contracts. It has an Inflation rate set at 1% every year.
Nodes are the backbone of the Stellar network. There are four types of nodes: watchers, archivers, basic validators, and full validators. Watchers are just there to verify transactions. Archivers store all the data. Basic validators vote on transactions. Full validators vote on transactions and also maintain an archive of all the transactions.
Stellar strives to set an international payments standard. To do this, it was designed to be interoperable, connecting the existing financial infrastructure and payment rails with new digitized ones so that money flows seamlessly across borders.
Stellar blockchain technology can connect any type of financial infrastructure anywhere in the world so that all systems and forms of value are interoperable. This builds toward a world where equitable accessibility is not a privilege, it’s a right. That‘s the power of Stellar.
Which Coin Should You Buy?
The purpose of this article was to provide you with information about both coins so that you could make an informed decision. I hope you found this helpful.
If you have any questions, let us know your thoughts in the comment section below.