What is Banano (BAN)? – The colorful fool | WHs Answers

banana (CRYPTO:BAN) is a meme token created by a hard fork of Nano (CRYPTO:XNO). Like most meme tokens, it started out as a joke and still doesn’t take itself too seriously.

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While meme tokens rightfully get a bad rap, Banano differs from the norm, and in a good way. It offers transactions that take seconds with no fees, and there are several easy ways to get Banano for free. Most importantly, having seen many meme tokens, I have to give Banano credit for not being based on the Doge meme.

It would be an exaggeration to say that Banano is a good investment, but it’s interesting and fun, so it’s worth knowing about.

What makes banana unique?

The first things to notice about Banano are transaction fees and times, which are as good as can be. Transactions have no fees and a three-second confirmation time. This makes Banano perfect for small transactions, such as B. tipping someone on a forum.

Banano aims to be welcoming and easy to understand for people new to cryptocurrency. Anyone can get free BAN tokens through Banano Faucets available on the website. Multiple taps are available, including games you play to earn Banano and a messaging app that hands out Banano to anyone who wants it.

One of the most interesting taps is the Banano Miner. As with other types of cryptocurrency mining, it involves donating your CPU or GPU power and getting Banano in return. The cool part is that your computing power is used for Folding@Home, software that runs protein folding simulations to help scientists around the world fight disease.

Where banana comes from

A group of Nano contributors founded Banano in April 2018 for fun. Banano is a hard fork of Nano, meaning the developers copied Nano’s source code. During launch, they distributed free BAN tokens through an airdrop to all Nano holders who signed up and provided their wallet addresses.

Little information is available about the team behind Banano. The website only lists their nicknames and a short, tongue-in-cheek description: for example, LOSHA1X, who is a “professional life hater”.

This is how banana works

While most cryptocurrencies record transactions using blockchain technology, Banano uses Directed Acyclic Graph (DAG) technology. A blockchain is a long chain of blocks, with each block containing a group of transactions. DAG uses a chart structure where transactions are interconnected vertices and each transaction builds on a previous one.

On Banano, each account has its own blockchain. Each payment requires two transactions: a send, which is deducted from the sender’s balance on their blockchain, and a receive, which adds the same amount to the recipient’s blockchain.

To secure the transaction book and prevent fraud, Banano uses open representative voting as the consensus mechanism. The open representative voting is like a Proof of Stake, but with the ability to delegate your own stake. Banano account holders elect a representative node to vote on their behalf in the event of conflicting transactions. Anyone can run a node, but since continuous operation isn’t practical for everyone, the representative system allows users to vote by proxy.

Banano uses a proof-of-work system as an anti-spam tool. When you send Banano, your device has to solve an equation to show that it has used processing power. Most average computers can compute the answer in a second or two.

partnerships

The most impressive thing about Banano is how much it contributed to Folding@Home through the Banano Miner. As mentioned above, Folding@Home allows people to run their software and donate their computing power to contribute to medical research. This helps fight diseases like Alzheimer’s, cancer, COVID-19 and Parkinson’s.

Anyone with a Banano wallet can earn BAN tokens by helping with this research. The Banano community has made a significant contribution in this way; it’s in the top 10 of Folding@Home’s all-time best list.

Banano has also partnered with other cryptocurrency projects. It announced a partnership with Vite Labs, the company behind the Vite blockchain network, in 2020. A partnership was formed ApeSwap (CRYPTO:BANANA), a decentralized finance (DeFi) hub, in 2021.

Can I earn passive income with Banano?

There are all sorts of ways to earn free Banano. You can find some of these on the cryptocurrency website in the “Get Banano” section. If you are looking for passive income, you can provide proof of work for apps and services via Boom POW or run the Banano Miner.

Banano also has more active ways to earn BAN tokens. It often has games that you can play and unlike most crypto games, there is no startup cost required. There is also the JungleTV platform where you can get Banano to watch videos.

To keep expectations realistic, none of these will get you rich. Banana isn’t worth much, so it’s not like you’re getting free Bitcoin (CRYPTO:BTC) here. But these are all easy ways to collect some free crypto tokens.

Unique risks

Meme cryptocurrencies like Banano are inherently risky as they rely heavily on popularity. Although some, mainly Dogecoins (CRYPTO:DOGE) and Shiba Inu (CRYPTO:SHIB) have generated tremendous returns in a short period of time, they tend to depreciate just as quickly.

Banano has a strong community that has built several related projects including JungleTV and a craps game, BananoBet. While there are plenty of people who love Banano, its goofy nature will likely turn off just as many potential buyers.

Another problem is that Banano doesn’t have any significant competitive advantages. Fast transactions with no fees are great, but Nano, the cryptocurrency it’s based on, already has them. Other cryptocurrency projects have more applications, such as B. Smart contracts, but not Banano. It is solely focused on being a free payment system.

Is Banano a good investment?

Banano isn’t the best choice as a cryptocurrency investment, but it’s easy enough to get for free if you’re interested.

To be honest, I liked Banano more than I thought at first glance. It’s beginner-friendly, has some fun projects, and doesn’t market itself as a get-rich-quick opportunity.

This does not mean that you should choose Banano if you want to invest in cryptocurrency. There’s nothing to suggest that Banano is likely to appreciate in value over the years. The best case scenario is that it gets widespread attention like other meme tokens, but you roll if you invest in the hope of it.

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How to buy banana

Most crypto exchanges don’t have a banana, so it’s not the easiest token to buy. You can find it on CoinEx or on decentralized exchanges including pancake swap (CRYPTO:CAKE) and ApeSwap. To use a decentralized exchange, you need to connect a blockchain wallet and exchange another cryptocurrency for Banano.

Remember that you can always get Banano for free instead of buying it. The Banano website has everything you need to get started. Just select one of the Banano wallets, set it up and you can get BAN tokens through any of their taps.

Lyle Daly has positions in Bitcoin and PancakeSwap. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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