Some thoughts on #Nano $XNO. It's one of the most interestingly-designed crypto projects, though I think its incentive problems will keep it from reaching mainstream adoption.
Let's dive in! 🤿
1/11
Let's dive in! 🤿
1/11
First, even though I'll be saying some critical things, I'm grateful Nano exists: it needs to in order to provide a contrarian position to existing crypto assumptions.
Nano proves you don't need to do things the same as everyone else in order to make something that works!
2/11
Nano proves you don't need to do things the same as everyone else in order to make something that works!
2/11
Nano operates on maximizing two key principles: fast and no fees. Everything is designed in order to make sure you can send money quickly without paying fees or inflation.
And this is achieved by a unique and barebones structure. But it does actually work!
3/11
And this is achieved by a unique and barebones structure. But it does actually work!
3/11
This can't be done without trade-offs though.
#Bitcoin's innovation that launched the cryptospace was its self-funding: security, supply distribution, transactions, anti-spam protection.
It blew up because it was an open-source project that could pay like a company.
4/11
#Bitcoin's innovation that launched the cryptospace was its self-funding: security, supply distribution, transactions, anti-spam protection.
It blew up because it was an open-source project that could pay like a company.
4/11
Bitcoin still had some holes (running nodes, development, promotion), which still plague it to this day.
#Dash pioneered masternodes and the #DAO to solve this, and ever since modern projects self-fund just about everything.
5/11
#Dash pioneered masternodes and the #DAO to solve this, and ever since modern projects self-fund just about everything.
5/11
With Nano, everything is "free" but DIY: do some proof-of-work instead of a fee to block spam, volunteer open-representative voting instead of inflation/fee-paid staking, shill it yourself on Twitter instead of paid promotion, and so on.
Stuff gets done, but you don't pay.
6/11
Stuff gets done, but you don't pay.
6/11
Some people like it this way. Hobbyists would rather tinker and do things themselves than pay for services, which is fine.
I myself use mostly free open-source software and hate paying for things when I don't have to.
But this doesn't work at scale.
7/11
I myself use mostly free open-source software and hate paying for things when I don't have to.
But this doesn't work at scale.
7/11
Economies of scale and division of labor mean that specialization and trade are far more efficient than people doing everything themselves.
Most users would rather work their job and pay a tiny fee than do PoW, delegate voting, shill endlessly on Twitter, etc.
8/11
Most users would rather work their job and pay a tiny fee than do PoW, delegate voting, shill endlessly on Twitter, etc.
8/11
The proof is in the pudding. What has paying for stuff gotten the rest of crypto that Nano doesn't have?
-DeFi
-NFTs
-Privacy
-Digital identity
-Payments integrations
-Decentralized supply distribution
The capital growth in the rest of the space is fueling innovation.
9/11
-DeFi
-NFTs
-Privacy
-Digital identity
-Payments integrations
-Decentralized supply distribution
The capital growth in the rest of the space is fueling innovation.
9/11
That being said, I think there's value in a Nano-like model for a small, tight-knit hobbyist community.
Also, if it turns out that something was fatally wrong with the way the rest of the cryptospace works, it'll be great to have an alternative to fall back on.
10/11
Also, if it turns out that something was fatally wrong with the way the rest of the cryptospace works, it'll be great to have an alternative to fall back on.
10/11
If you enjoyed this make sure to subscribe to @DigitalCashNet and maybe even throw in some questions during a live show.
Cheers everyone!🍻
11/11
Cheers everyone!🍻
11/11
@threadreaderapp unroll please
• • •
Missing some Tweet in this thread? You can try to
force a refresh
