I've read briefly about nano and its super interesting. I don't really understand how its feasible though. What is the incentive for operating a node in the network?
A cryptocurrency that would ACTUALLY be used as a currency needs a resilient network. But if operating a node yields no financial incentive, how is that network supposed to be created?
The incentive is the exact thing you're worried about: merchants get to avoid fees. If Nano ever takes off as a payment method, then you'd probably see e.g. large grocery chains operating Nano nodes to avoid fees.
It looks to me like Nano will suffer from the free-rider problem.
If Nano becomes an established currency, then a grocery chain can just rely on the existing Nano nodes to process its transactions (which will still be free), they don't need to run their own node for it.
They can publicize their brand with a node. Moreover, if they want special functionality they may have to run their own node. In general, running nodes is so cheap that is not prohibitive to wider audiences. Today there are easily more than a hundred nodes running, exchanges, services, etc. The number is bound to increase as the ecosystem grows.
Sounds great. Why not just use the nano technology to let me move around the USD in my bank account?
Why do we have to invent an all new currency for these technologies to use? There is no good reason, other than to make early adopters wealthy, which they would like very much.
What's stopping the US government from taking nano and creating a USD-backed version?
Exactly. So where is it? I've been using the internet since 1997. Banks had the chance to make it. I read here all the time "a single database would be a better solution". So where is the single database? Where is the instant money transfer? Where is the free money transfer over country borders?
My wife lived in US for a while, she is now in EU. She still has some bank account there with a few thousand dollars on it. She can't transfer it to EU (some limitation of that account), she can only get cheques, or ask for some credit card. I told her to see how to purchase crypto with that card, and then transfer the money like that. It's fucking 2021, are you serious?????
So yeah, if you expect banks to come up with a system that can compete with current gen crypto, good luck to you.
> Where is the free money transfer over country borders?
I use a major US bank. They offer $0 wire transfers to EU accounts. Wire goes out same-day.
Would much rather do that than transfer to a crypto exchange, convert to crypto (with fee), send crypto (with fee), exchange crypto on the other end (with fee), and the transfer to other bank.
