Why Nano is important

Nano (XNO) is a scarce digital asset with an unchangeable monetary policy: its supply is fixed and fully distributed and thus has no inflation. Only 133 million Nano will ever exist. It operates independently of the fiat money system, yet is a liquid, globally tradeable asset. It is self-sovereign and can be self-stored or custodied with 3rd parties. It can be securely and instantly transferred between parties with no pre-existing trust and with no value loss during transfers (feeless).

It is capable of being a strong store of value (SoV) and a frictionless medium of exchange (MoE), making it one of the most advanced forms of money to ever exist.

The term money can be conflated with many things like wealth and fiat money, its most popular form. To understand its importance, one must understand its core function and why it matters for society.

The core function of money is being a medium of exchange that enables society to collaborate, cooperate, organize, specialize, and much more. Thus money, like communication, is foundational to society as it is a prerequisite for all complex cooperation. The concept of money was one of the first, and among the most important, collaborative innovations of mankind.

The concept of money is believed to have originated in the form of "promises" (i.e. debt), sometimes kept on a publicly accessible ledger (sound familiar?). Over time it evolved to commodity money, gold, coins, and eventually fiat money.

Fungibility: its units must be capable of mutual substitution.
Durability: able to withstand repeated use.
Divisibility: divisible to small units.
Portability: easily carried and transported.
Cognizability: its value must be easily identified.
Scarcity: its supply in circulation must be limited.
Acceptability: widely accepted.

Medium of Exchange — to transfer value
Store of Value — to hold value
Unit of Account — to measure value

Modern society is built on top of fiat money. Nano is an innovation in money that can be used to build a better society. Learn about its advantages in comparison to fiat money and other digital currencies.

Another core function of money is being a store of value. Money needs to be able to maintain its purchasing power over time. Scarcity is at the core of maintaining purchasing power over time. All modern money has an inflationary supply, which reduces its purchasing power over time, and diminishes its ability to function as a store of value.

Note: modern fiat money is inflationary as it is argued that small amounts of inflation drive economic growth and an adjustable monetary supply is a tool for governments to respond to economic events.

Nano is not a replacement for fiat money, but rather an alternate and better form of money. One that protects against inflation, corrupt monetary policy, and miners.

There will never be any more Nano created and dumped into the market, making its Stock-To-Flow undefined as you can not divide by zero.

Nano has no inflation, maintaining its purchasing power over time.

Nano is self-sovereign money. Its only ruler is the secret key that is associated with it. It only answers to whoever has the secret key and no other authority, government, or entity. This makes it resistant to confiscation, sanctions, and censorship.

Note: without decentralization, Nano would not maintain this quality

Any amount of value lost during a transfer creates friction. No value will ever be lost transferring Nano, making it an ideal medium of exchange.

The lower the friction (fee), the more accessible and useful it will be. High fees disproportionately impact the less fortunate and limit use cases.

Nano is feeless making it inclusive to all and useful in ways that were not previously possible.

Slow settlement leads to inefficiencies and a poor experience.

Nano works just like cash, it's instant, even if the person you are handing the cash to is on the other side of the world and you are on a red-eye flight.

Decentralization ensures many of Nano's other qualities like self-sovereignty, security, scarcity without the need for trust.

Without it, you lose qualities like "permissionless" and "censorship-resistant". It's this hard promise that gives someone the confidence to use it and build on top of it.

Not relying on an increasing amount of energy makes Nano sustainable. It is also resilient against power shortages and the emergent centralization forces that plague digital money that is secured by high energy usage (i.e. Bitcoin).