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# The Current State of Crypto
## The Current State of Crypto
In 2021 news about cryptocurrency has been dominated by _meme coins_. It is without a doubt that the crypto bull runs of 2021 have been thanks to the hype around coins with zero utility besides the ability to rapidly shoot up in value due to carefully constructed tokenomics^[@Shiba]. Unfortunately, the hype surrounding coins with actual utility has been disappointingly low in 2021.
The current narrative of the most influential coins is that bitcoin will change financial infrastructure and keep governments from taking our freedom. Ethereum will be the backbone for everything from the internet, to art, to the mortgage on your house. The rest of the top 10 (and most of the top 100) coins by market cap are either smart-contract platforms with little community gunning for Ethereum's spot or meme coins promising valuations that challenge the wealth of the economy of the world.
The current narrative of the most influential coins is that Bitcoin will change financial infrastructure and keep governments from taking our freedom. Ethereum will be the backbone for everything from the internet, to art, to the mortgage on your house. The rest of the top 10 (and most of the top 100) coins by market cap are either smart-contract platforms with little community gunning for Ethereum's spot or meme coins promising valuations that challenge the wealth of the economy of the world.
# Return of the Utility
## Return of the Utility
The coin I want to talk about is Nano (XNO). As of writing, it is ranked #175 by market capitalization. Nano does one thing and executes it perfectly: being a currency. The current market capitalization is far lower than other coins with similar amounts of development and community. Ethereum has a vibrant ecosystem where usage causes more usage. [The figure here illustrates this nicely.](https://twitter.com/domothy/status/1462988092848156677/photo/1) The only way to increase demand for Nano and increase the price is to get it used for everyday transactions which would make the limited supply more scarce. Currencies have so much more to offer the world than just stores of value that can shoot up in price, and I think Nano is the perfect example of that. A coin of pure utility.
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| Initial Distribution | Faucets | Initial Coin Offering |
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# What is Nano
## What is Nano
**Nano is fast** because it uses a block-lattice architecture. This means that there is no concept of block times which are the limiting factor for most cryptocurrency's transaction time. Every wallet has a unique blockchain, and each "block" only contains a single transaction. Since the block is only needed when a transaction is made, wallets can pre-mine a block and hold onto the proof of work. Since each wallet manages its blockchain and proof of work, nodes only need to worry about the balance of each wallet. This enables transactions to be instantly propagated to the network, and the nodes that govern the network only keep track of the balance of each wallet.
**Nano is free** to transact because it does not rely on paying miners for proof of work, and it is designed to be efficient so running a node is cheap and does not require support from the network. Bitcoin requires 1900 kWh of power for a single transaction^[@BTC_ECI], whereas Nano is only 0.111 Wh per transaction^[CanadianVelociraptor_2018] which is a difference of about 17 million percent.^[Numbers as of writing. Mining difficulty is variable, and hardware efficiency gets better every day.] There are many arguments that no one will run the nodes required to keep the Nano network healthy without proper incentives. Nano can work around this by keeping the requirements to run a Node very low so that the indirect benefits of running a node far outweigh the costs of the hardware. Companies will likely run nodes since running a node will be cheaper than paying transaction fees for other payment methods. The Nano whitepaper goes into great detail about the types of nodes.
# Why isn't Nano Mainstream
## Why isn't Nano Mainstream
Most cryptocurrencies have features that directly benefit other users or network maintainers from being used. Transaction fees fed back into the coin's ecosystem are a great way to create feedback loops that generate more use for a coin. The incentive structure for Nano is much less direct but arguably much more potent. Established players in the cryptocurrency and payment processor world benefit significantly from having transactions go through them. To single out Coinbase, they have a feature where you can transfer crypto between any other member on the platform instantly and free^[@CoinbaseHowSend]. This proprietary feature could create a walled garden that Nano threatens to dismantle.