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Coin Reviews

Nano Coin SWOT Review | Everything You Need To Know

By January 5, 2017 No Comments

Nano first started out as Raiblocks in December of 2014 with the release of its original white paper and beta implementation. We first examined the project when we conducted a coin review of ‘Raiblocks’ earlier in the year. We decided to conduct the Nano Coin SWOT review again to re-examine and assess the project through a fresh set of eyes.

A SWOT review is a standard business practice that examines the Strengths, Weakness, Opportunities and Threats of a business model or idea.

Lets first examine what Nano is all about.

What is Nano?

Touted as the first project to use Directed Acyclic Graph (DAG) technology, Nano represented a move away from the traditional single blockchain models that most cryptocurrencies use today.

There are a few the things that set Nano, as it’s now called, apart from other cryptocurrencies. From the beginning, Raiblocks developed a block-lattice structure, where each account or user has its own blockchain equivalent to the user’s own transaction/balance history. Because of this type of structuring, only the owners themselves can modify that chain.

Nano today is a cryptocurrency which primarily aims to be a ‘transfer of value’. In other words, their ambitions revolve around attaining wide adoption as the global standard of currency. As such, its block-lattice structure has a reputation for providing very fast and fee-less transactions.

You can read more about the technology in the Nano whitepaper.

Nano Coin SWOT Review

Now to the meat of the post, the now famous SWOT review. As an interesting fact, we started conducting these over a year ago as a way to analyse a crypto project. Long-termers in this industry know the coin & the company are interlinked, which is hard to articulate. The SWOT review allows these two components to converge in the one review, which is why we like them so much.

Here is our Nano Coin SWOT review that conducted back when Nano was Raiblocks. Its a good watch, but some of the information covered has been superseded in this post, so keep that in mind.

Strengths

  • First and foremost, the Nano network has a reputation for very fast transaction times. We’re talking milliseconds, which is due to network consensus rules.
  • Documentation and available information are of a high standard of quality, written well and clearly.
  • Deliverables include a web and desktop wallet, nodes, and development tools.

Image of wallet download choices as relating to Nano Coin SWOT Review

  • Nano has a reasonably sized team of around 12 people, none of which are anonymous which is a positive.
  • The CEO conducts AMA’s on Reddit, and answers some tough questions.
  • The project has a very strong and engaged community of 99K Twitter followers, and 43K on their Reddit.
  • Plenty of activity in their Github, with commits starting from 2014 to the current day
  • People can trade NANO on multiple exchanges, including Binance, HitBTC and KuCoin.

Image of Nano CoinMarketCap value and activity as relating to Nano Coin SWOT ReviewWeaknesses

  • Nodes only keep the accumulated balance of an account’s current balance. In other words, nodes discard historical data, potentially weakening the strength of its distributed consensus model.
  • Nano has developed its own distributed ledger technology. Consequently, this makes it more difficult for exchanges to list it and for other developers to work with it.
  • The main developer is Colin LeMahieu, is also the author of the whitepaper. There does not appear to be any additional authors, or anyone listed who has peer-reviewed the whitepaper other than Colin himself.
  • There doesn’t seem to be an organisational structure in place. As per the website, the team consists of around 10 people, which could be considered small for a coin with a market cap of $249 million (at the time of writing).
  • In a Reddit AMA, Colin stated that Nano are not actively pursuing other active developments other than low-cost and fast transactions

Image of Lead Developer AMA statement for Nano Coin Swot Review

  • The wallet interface is quite basic with limited functions when compared to other wallets with multi-sig and hierarchical determination.
  • To date, there has not been a security audit or review of the source code.
  • In February 2018, 17 million NANO coins were stolen from the Italian exchange Bitgrail. This hack has caused ongoing issues between the exchange and the Nano core team, with both parties point the finger at the other as to who may be at fault.
  • As a result of the hack, a lawsuit was brought against Nano by investors to recoup funds lost through the hack. As of the 3rd October, this lawsuit has now been dropped.

Opportunities

  • Nano has the opportunity to become a widely used cryptocurrency if it becomes accepted with more merchants, improves its wallet interface, and continues overall development.
  • There is an opportunity for Nano to overcome the issues and bad press surrounding the Bitgrail hack.
  • The DAG technology used by Nano could prove an effective and scalable way to conduct transactions across a distributed ledger.

Threats

  • Because the technology is new and less battle tested than other cryptocurrencies, there is an increased threat of code vulnerabilities or a major hack.
  • The lack of economic incentive to run a node over time could lead to vulnerabilities as system security is lowered and transactions may fail to be verified.

Image about Nano's node monitor as part of our Nano Coin SWOT Review

  • A security audit of the source code could identify vulnerabilities and issues with the code. Without one, this is a major threat to users and investors in the age of multi $M hacks.
  • There is a threat that the Nano fails to compete with Bitcoin, Litecoin, Dash, Bitcoin Cash, ZCash, and Monero as a pure cryptocurrency. This is because many of these cryptocurrencies have similar value propositions, are more widely known and used, and have greater brand awareness.
  • Primarily, the purpose of Nano’s is as a medium of exchange and not a store of value. As such, the cryptocurrency itself could become overvalued due to the fact that a medium of exchange should not be volatile.
  • Given Nano is purely designed to be medium of exchange, there is a threat that stablecoins such as True USD or Maker DAI will provide the stability needed for a coin like this.
  • There is a threat that the ongoing issues from the Bitgrail Hack, and subsequent class-action lawsuit will disrupt or even de-rail the Nano team and subsequently the coins development.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Cryptocurrency Australia Media, or the author, may have holdings in the cryptocurrencies discussed.