Nano (NANO)

On Thursday May 5, 2018 some code was added on Nano (NANO) GitHub repository which is now raising questions amongst the various communities. Nano is facing a threat from a group within the team that changed the Nano V.12.1 source code privately with no major announcement made. The code in question allows whales to own up to 53 million USD worth of NANO tokens at a time, while also locking out small investors from participating from voting in the protocol. The accusations against the company have yet to be made official with NANO team yet to respond on the matter.

The secret lines of code on NANO GitHub

  1. Voting changes

The automatic voting mechanism on Nano (NANO) has been vague to most users, especially on the new version as questions fill up their Reddit page on the issue. The voting is carried out with each node expected to get a vote weighted by the amount of NANO tokens held (at least till the recent change). The recent update only allows users with 0.1% of the stake in NANO (approximately 133,000 NANO) to vote on specific matters. This locks out most of the community members as the price to obtain such a stake totals to over $1 million dollars.

  1. Node Transaction speed

The voters (owners of >133K NANO tokens) are also segregated. Those who own $53 million USD worth of NANO have acquired a new super ability over everyone else. A complete sign of centralized control. Their nodes transact at 15 times higher speeds that the lowest class of voters. This huge difference in transaction speeds in proof of stake consensus is however not new to the crypto field as it is comparable to the proof of work present in ASIC miners. The problem arises as to the change being made without official communication raising doubts in the motive behind it.

  1. Decentralized Nature

NANO has been one of the most controversial coins yet full of promise. Nano blockchain aims at providing the user with an instant payment platform, with zero fees and a highly scalable feature. The decentralized nature of the blockchain makes it easy to cut out complete control of the blockchain. Nodes were independently connected to each other in a trustless network ensuring total decentralization. However this is no longer the case as the nodes across the world are connected to 31 main nodes which form the main trust network. Does this make the network less decentralized?

The $150 million USD NANO hack on BitGrail.

The private change in code is not the first scandal arising from the Italian based token, with the coin experiencing a hack on BitGrail exchange earlier in the year in February.

Nano, formerly known as Raiblocks, has for the better part of the year been entangled in a back and forth blaming game with BitGrail cryptocurrency exchange. The exchange experienced a major hack back in February where over 17 million NANO tokens stolen from their investor’s hot wallets. The total estimated value of the coin was at $184 M USD at the time of hack ($170 Million at press time).

The increasing dramatic accusations of both parties blaming the other for the hack leaves the investors at a confused and sorry state. BitGrail owner blamed NANO for the failure to tighten their blockchain against such hacks. NANO on its part placed the blame impartially with BitGrail, stating the blockchain is secure.

The two companies have since come up with compensation schemes for the lost NANO tokens. NANO in its statement offered 4 million NANO tokens as compensation while BitGrail exchange offered to pay 20% of the stolen coins in XRB while the rest will be paid in their new coin offering BitGrail token.

Numbers on the board

All the community and exchange issues aside, the token has witnessed massive growth in price for the last 24 hours as it crossed the $10 mark for the first time soaring by 25% during the period. Nano (NANO) currently trades at $10.29 USD with the daily trading volumes hitting a 2-month high at $120 million USD worth of NANO traded. The coin ranks 23rd in the Coinmarketcap listing with a total market capitalization of $1.3 billion USD.


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