Thread by @DalinHuang

1/ 🧵@elonmusk brings the discussion about #dogecoin block time and block size, and the #Nano community goes wild. Here is why? Before we start, let's talk about two companies, Kodak and Dyson. "Those who do not remember the past are condemned to repeat it."

2/ Steve Sasson, the Kodak engineer who invented the first digital camera in 1975, characterized the initial corporate response to his invention this way:

"But it was filmless photography, so management’s reaction was, ‘that’s cute—but don’t tell anyone about it."

3/ Dyson's story:
When James Dyson introduced his invention of the bagless vacuum to investors and brands, they thought it was bad because they couldn't sell more bags. Bagless will kill their business model.

4/ You can probably be thinking of more examples like this. Apple's keyboardless design and UX, Tesla uses much fewer parts to make a better car. "less is more" or "remove to improve" (comment here if you have more examples).

5/ Now, let's look at the classic (1st gen) blockchain, which needs a global state and has block time and block size. Block time is not the time your tx is settled(Final). For Bitcoin, you need 6 confirmations to be 99.9% sure and this is called Probabilistic finality.

6/ As more blocks are added, the transaction is further referenced in the blockchain and becomes harder to revert or alter as a result (see Double Spend). But if you think the double-spending problem is solved here, it is just difficult but not impossible.

7/ A low hash rate is extremely dangerous for many POW projects, and double-spending is very likely.

8/ First-generation blockchain has one single chain like a single linked list (Data structure). Every miner competes for the next block to collect rewards and fees. No matter how much the hardware scales, the network's performance gains nothing.

9/ It requires code change to increase (block size/time), which probably won't work and might just end up splitting the network into two chains (Hard fork). It didn't solve the scalability problem and also split the community 💔.

10/ Second-generation blockchain uses POS to achieve determinism finality.
Deterministic finality occurs when a transaction is immediately considered to be final once it is added to the blockchain. For this to happen, a “leader”👑 must propose a block to be added,

11/ and then a specified portion of validators 👥 must approve it. In my own opinion, this sacrificed too much decentralization to achieve some scalability, a bad actor leader can freeze your funds or block your account which is not good.

12/ #Nano uses DAG with account-level blockchain, more like a hash table linked list data structure. Currently, a nano tx has 2 blocks for determinism finality, send/receive block. There are no tx fees (feeless) and no rewards for nodes.

13/ The sender and receiver sign and maintain their own blockchain, no one else can do that. There is no global block to be added, no leaders. You send your tx from your account blockchain to your delegated node, the node verifies your signature and broadcasts it

14/ to the network for a vote, when a quorum is reached the tx is final. The receiver can sign the block later at any time (if offline).

15/ There is also a proposed two-chain (send/receive) per account structure that will scale better and it is very interesting. (out of scope and will not discuss further)

16/ To put it simply, a classic blockchain is like a train🚂, you have limited space and fixed time. Nano is like uber🚕(but instant), you make txs and you don't need to wait for the train and compete for the space.

17/ Transfer value becomes as simple as sending an email but faster (~0.35 sec). Low latency, no error, feeless, eco-friendly (no mining).

#Nano is the first DAG and uses Open Representative Voting (ORV) as a consensus mechanism, a variant of Delegated Proof of Stake.

18/ So, it is not the POS most people think it is, it is very different in a good way.

It scales with the network(no block time) and hardware (no block size), the global network has about 250ms latency, but some private networks can already achieve 20ms globally

19/ with 1TB throughput. That alone can scale Nano 1000 times from what we have today without any code changes. A transaction would only take 35ms (0.035) to confirm (you blink your eye and 10 Nano txs are done). If that excites you, DYOR about Nano.

20/ I could probably talk more about #Nano's architecture and design until 2040 but let's not do that. Nano is still under development and a lot of those will be changed for better scalability and performance, it is far from complete but already very exciting for

21/ many of us. I believe this is the 3rd generation of blockchain that could be the base layer of the value transfer network.

I appreciated my buddy that introduced me to the crypto world back in 2012, I learn a lot and had big hope this technology could solve

22/ some real problems, for 10 years this space changed so much but also changed so little. Talk about bitcoin will not be publicly shamed and laughed at anymore. But I'm disappointed that the fewer people in the community talking about technology and improvements.

23/ If you think about Lightning Network, let's say it works, but you also can implement it to most layer 1 projects and that does not solve a fundamental Layer 1 problem.
I love where #ETH is going, the Ecosystem is stronger than ever, and flipping is imminent.

24/ The sharding design should work, excited to see how cross-shard transactions will perform.

25/ I will end this with quotes from James Dyson:
“Like everyone we get frustrated by products that don’t work properly. As design engineers we do something about it. We’re all about invention and improvement.”