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A security audit of Nano was completed by Red4Sec in July of 2019. You can find an overview of the audit here[1] and the full Red4Sec report here[2]. "Red4Sec h

A security audit of Nano was completed by Red4Sec in July of 2019. You can find an overview of the audit here[1] and the full Red4Sec report here[2]. "Red4Sec has been able to determine that the overall security level of the asset is optimal." [1]https://medium.com/nanocurrency/nano-protocol-security-audit-summary-and-full-report-48760be8ab3d https://medium.com/nanocurrency/nano-protocol-security-audit... [2]https://content.nano.org/Nano_Final_Security_Audit_v3.pdf https://content.nano.org/Nano_Final_Security_Audit_v3.pdf

Geee 6y ago
This seems to be an vulnerability analysis of the Nano source code. I meant the monetary security and game theoretic plausibility of the protocol itself. E.g. how do we know which blocklattice is the correct one? (in Bitcoin it's the longest chain, which contains most energy and thus can't be created from thin air). Are there enough incentives to keep the network running and decentralized? Etc.
- onelastjob 6y ago
  Each Nano account is its own blockchain. These accounts interacting form the block lattice. So it's not as though there are competing block lattices in Nano. In Bitcoin there can be a sidechain that can overtake the main chain (if the sidechain becomes longer than the main chain) and then cause a reorg of some blocks. But I don't think anything like this is possible in Nano. You'd have to ask the devs though to know for sure on the official Nano forum at forum.nano.org In terms of the incentives to keep the network running without mining fees or proof of stake rewards, the Nano community and devs think that merchants and other services using Nano will save significant amounts of money by not having to pay credit card processing fees. This will incentivize those merchants and service providers to run their own node (which only costs around $60 per month) in order to keep the network healthy and decentralized. The lack of mining fees and proof of stake actually disincentivizes the kind of centralization we are seeing with Bitcoin mining.

Geee 6y ago

This seems to be an vulnerability analysis of the Nano source code. I meant the monetary security and game theoretic plausibility of the protocol itself. E.g. how do we know which blocklattice is the correct one? (in Bitcoin it's the longest chain, which contains most energy and thus can't be created from thin air). Are there enough incentives to keep the network running and decentralized? Etc.

onelastjob 6y ago
Each Nano account is its own blockchain. These accounts interacting form the block lattice. So it's not as though there are competing block lattices in Nano. In Bitcoin there can be a sidechain that can overtake the main chain (if the sidechain becomes longer than the main chain) and then cause a reorg of some blocks. But I don't think anything like this is possible in Nano. You'd have to ask the devs though to know for sure on the official Nano forum at forum.nano.org In terms of the incentives to keep the network running without mining fees or proof of stake rewards, the Nano community and devs think that merchants and other services using Nano will save significant amounts of money by not having to pay credit card processing fees. This will incentivize those merchants and service providers to run their own node (which only costs around $60 per month) in order to keep the network healthy and decentralized. The lack of mining fees and proof of stake actually disincentivizes the kind of centralization we are seeing with Bitcoin mining.