Introduction to XRB Nano (Previously RaiBlocks) Part 1

Market capitalization and 2018 rebrand. Cryptocurrencies and double-spending

In December of 2017, the price of RaiBlocks XRB (rebranded to Nano as of January 31, 2018) has skyrocketed from under USD$1 to USD$30 by January 1, 2018. By the end of January, the price fell to about USD$15 and the capitalization of Nano has been about 2 billion USD.

In short, Nano/Raiblocks wants to become everything Bitcoin wasn’t able to accomplish. It wants to be a fast, free, and easy to use cryptocurrency that people can use to pay for anything they want.

 

Reasons for rebranding from RaiBlocks to Nano

The team behind Nano/Raiblocks decided to rebrand their project despite the impressive growth of the price of the token and growing name recognition. The reason for rebranding was that many people didn’t know how to pronounce the word “RaiBlocks” and why the parts of the word (“rai” and “blocks” were there). Many of the members of the community weren’t sure if “Rai” was pronounced as “rye” or as “ray.”

The word “nano” is much easier to pronounce and the team behind RaiBlocks felt that it described the project much better. The new main website of the project is Nano.org. As of February of 2018, the developers behind the project plan to eventually update all the software and information and replace the name “RaiBlocks” with “Nano” everywhere. The change did not have any impact on the performance of XRB as a currency, the wallets, and the network.

 

The need for XRB Nano/RaiBlocks

Colin LeMahieu published the first XRB Nano/RaiBlocks whitepaper in December of 2014.

The developers of RaiBlocks were observing the growth of Bitcoin and correctly realized that moving forward the Bitcoin network would have problems gaining mass-adoption. The reasons for the problems are poor scalability (Bitcoin network can process between 3 to 7 transactions per second), long wait time for transaction confirmations (an hour or more) and power inefficiency because of how mining works on the Bitcoin network.

 

Problems with transactional capacity of the Bitcoin network. The issue of double-spending

Fundamentally, all the issues around Bitcoin are about the Bitcoin network having one decentralized ledger, also known as the Bitcoin blockchain, that records all the transactions that occur on the network.

The Bitcoin network aims to create a block of the blockchain every 10 minutes. Blocks on the Bitcoin blockchain are 1 megabyte in size, which in practical terms means that the Bitcoin network can only process between 3 and 7 transactions per second. If Bitcoin were to gain mass adoption and people all over the world were to start using it for payments, recording all of the global transactions onto one ledger in a way that allows people to engage in transactions quickly, easy, and efficiently, would simply not be possible.

Another problem with the Bitcoin network is latency or the time it takes for a transaction to go through. On the Bitcoin network, all transactions are final and irreversible. In the white paper that introduced Bitcoin, Satoshi Nakamoto, the creator of Bitcoin, argued that reversibility of transactions is one of the main reasons why the costs of transactions performed using traditional financial institutions is so high.

One of the biggest novelties of Bitcoin is that it solved the issue of peer-to-peer trust. Today, two people or organizations that do not know each other and do not trust each other can use Bitcoin, Ethereum, XRB Nano/RaiBlocks or one of many other cryptocurrencies without a need to use a third-party such a bank to facilitate the transaction.

The Bitcoin blockchain exists so that it would be impossible to modify past transactions on the network or somehow scam the participants of current and future peer-to-peer transactions.

In literature and scientific studies, the problem that Satoshi Nakamoto and the Bitcoin network were able to solve is also known as “the problem of double-spending.”