grammarly it up

_posts/2021-11-27-notes-on-nano/notes-on-nano.Rmd

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 # The Current State of Crypto
 
-In 2021 news about cryptocurrency has been dominated by _meme coins_. It is without a doubt that cryptos 2021 bull run has 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]. The hype surrounding coins with actual utility has been disappointingly low in 2021.
+In 2021 news about cryptocurrency has been dominated by _meme coins_. It is without a doubt that cryptos 2021 bull run has 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 largest coins is that bitcoin is going to change financial infrastructure and keep governments from taking our freedom. Ethereum is going to 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 worlds economy.
+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
 
-The coin I want to talk about is Nano (XNO). As of writing it is ranked #169 by market capitalization. Nano does one thing and executes on it perfectly: being a currency. The current market capitalization is far lower than other coins with similar amounts of development and community. This is likely due to the lack of a network effect. Most coins have feedback loops that drive transactions. The only way to increase demand for Nano and increase the price is to get it used for everyday transactions. In the world of meme coins it can be very hard to get attention to a project that isn't made to have massive swings in price but hopefully I can explain by the end of this post why Nano is worth using.
+The coin I want to talk about is Nano (XNO). As of writing, it is ranked #169 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. 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.
 
 ![Data from [@kraken_deposit] and [@coingecko]](caps.svg)
 
-In order to be used for transactions a currency needs to be exchanged in seconds. Above is all the coins listed on Kraken along with the confirmation time. Confirmation time is the amount of time that Kraken recommends waiting before you can be sure that a transaction has been cemented by the blockchain and can not be reversed. Kraken's times are a bit conservative but considering they use the same time for all sizes of transactions I think the values are accurate and a trusted source to rely on for the information. To be fair, most of the coins on this list were never designed with buying coffee in mind but I think the comparison is still important since it is commonly believed that the only thing holding bitcoin and its derivatives back from being used everywhere is hitting a critical mass of adoption among retail. There is some progress being made but Bitcoin today is far from being capable for use as a currency.
+Exchanges must happen in seconds for a currency to be usable. Above are all the coins listed on Kraken, along with their confirmation time. Confirmation time is the amount of time Kraken recommends waiting before a transaction can be trusted not to be reversed on the blockchain. Kraken's times are conservative, but I believe them to be a trusted authority on the topic. It's important to note that most of the coins on this list are not designed with buying coffee in mind, but I think the comparison is still relevant since it is commonly believed that the only thing holding bitcoin and its derivatives back from being used everywhere is hitting a critical mass of adoption among retail. Bitcoin is making progress, but Bitcoin today is far from being used as a currency.
 
 ![Data from [@coingecko]](fast.svg)
 
-Above are all of the coins that are capable of settling in less than 1 second which is about on par with a credit card. Solana stands out the most since it is the only smart contract on the list and has the highest market cap. Solana has a ton of potential but I don't believe that a coin with a smart contract platform can compete long term with a coin specifically designed to be a currency. The DeFi and Parachain coins are more governance tokens than actual cryptocurrencies so they aren't designed with the scale required for use as a currency. That leaves Ripple and Nano which have wildly different market caps. Ripple is quite controversial since it is centralized to the point that I would argue its closer to Visa than Bitcoin^[@Jain_2021]. I personally think that Ripple is ran by a fraudulent organization so I don't want to justify it by talking about it too much here. However it would be unfair to no at least compare the performance and tokenomics since they are the only two serious projects with the goal of becoming a currency.
+Above are all of the coins capable of settling in less than 1 second, which is about on par with a credit card. Solana stands out the most since it is the only smart contract on the list and has the highest market cap. Solana has a ton of potential, but I don't believe that a coin with a smart-contract platform can compete for long-term with a coin specifically designed to be a currency. The DeFi and Parachain coins are more governance tokens than actual cryptocurrencies, so they aren't designed with the scale required for use as a currency. That leaves Ripple and Nano, which have wildly different market caps. Ripple is quite controversial since it is centralized to the point that I would argue it's closer to Visa than Bitcoin^[@Jain_2021]. I believe a fraudulent organization runs Ripple, so I don't want to justify it by talking about it too much here. However, it would be biased not to compare the performance and tokenomics since they are the only two serious projects to become a currency.
 
 :::l-body-outset
 | | Nano^[@nano] | Ripple^[@ripple] |
@@ -50,6 +50,6 @@ Above are all of the coins that are capable of settling in less than 1 second wh
 
 # What is Nano
 
-**Nano is fast** because there is no concept of block times. Every wallet has its own unique blockchain and each "block" only contains a single transaction. Since the block is only needed when a transaction is made it means that wallets can pre mine a block and hold onto the proof of work until the next transaction is created. So when a transaction is made it is instantly propagated to the network and the nodes that govern the network only keep track of the balance of each wallet.
+**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 and it is designed to be efficient. 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 the efficiency of hardware gets better every day.] There are many arguments to be made that without proper incentives no one will run the nodes required to keep the network healthy. Nano is able to work around this by keeping the requirements to run a Node very low. The Nano whitepaper goes into great detail about the types of nodes.
+**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. 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 the efficiency of hardware gets better every day.] There are many arguments that no one will run the nodes required to keep the network healthy without proper incentives. Nano is able to 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 running 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.