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Blockchain Decrypted: The Block Lattice – In Depth

In Part 2, we deep dive into the Block Lattice’s validation mechanism, its overall structure as a ‘database of blockchains’, and much more.

Consensus Algorithm

In Nano, there is a different confirmation system based on “representatives”. In general, all that is needed is your cryptographic signature on your “send” and “receive” blocks. When the node syncs, it runs through the ledger to ensure that the signatures are authentic (remember that all of this is done in a matter of seconds).

In order to prevent double-spend attacks, Nano has a “representative system”. A representative in the system is basically an address with a lot of money. The representative acts as the arbiter of which double spent block to go through and propagate through the system. I’ll elaborate a lot more on potential attack vectors in chapter 4.

Incentive for Running Full Nodes

A very common question for Nano is, who is going to pay for running the full nodes, in most crypto currencies there is an incentive for miners to run full nodes because they can collect mining fees (coins and transaction fees); there is no mining in Nano however.

Clarification:

A node is basically a computer that facilitates transactions across the global network. Nodes may be added or removed at any time by anyone on the internet and the cryptocurrency, as a whole, will continue to function. Cryptocurrencies tend to need a minimum number of nodes to prevent attacks on the network, but that’s another topic (see chapter 4 on attacks).

Read all of Part 2 here…

Greg Nance – CEO at Dyad.com – Push the Frontier of What I View As Possible