Why X might implement Ӿ (Nano) to turn it into the everything app.

It's no secret Elon Musk has plans to turn X into the everything app, including payments.

I think he's realised neither Doge nor BTC is suited for it. In an absurd twist of fate, Ӿ might be exactly what he's looking for. The most entertaining outcome may truly be the most likely.

First off: why not Bitcoin?

Elon: "There is a fundamental issue with for example Bitcoin in that its transaction volume is very limited. Its latency, the latency for a properly confirmed transaction is too long, much longer than you’d like."

"It’s actually not great from a transaction volume standpoint, or from a latency standpoint. What you want to have is a high transaction volume capability. You want to have low costs of doing a transaction."

More on this in the article linked.

It's well known Elon is fond of Dogecoin, has mentioned it repeatedly, either holds some or held it in the past, and often engaged with the Doge community. It's clear that he likes it.

But at this point I doubt that it will be integrated into X.

On the dimensions he seems to find important, Doge does not do better than Bitcoin. Regardless of its fantastic community and memes, settlement takes about half an hour, fees go up with usage, and its scalability is limited.

My interpretation of Elon's decreased DOGE (and BTC) engagement is that he's spent more time getting to understand distributed ledger technologies and has realized how fundamentally flawed both are. They're not the perfect money he wants X to use.

"I think money should really be viewed through the lens of information theory, kind of like an internet connection. What’s the bandwidth, total bit rate, what is the latency, jitter, packet drop, errors in the network communication."

Such an ideal form of money would offer instantly settled transactions at zero fees. It would offer absolute security and absolute certainty that transactions arrive.

Given that X is turning into the everything app for everyone, this money also needs scalability.

This is where the movie script becomes slightly unbelievable. At the end of 2021, Nano changed its ticker to XNO to be more in line with ISO standards. Its currency sign changed to.. Ӿ.

"The idea was for X.com to be an all-encompassing financial services company. To be the most efficient database for the thing that is money. The way money currently works, from a practical standpoint is it's still run on mainframes, in batch processing."

"The financial system is very slow, it's not secure. You want a real-time homogenous database that is fundamentally more efficient. Money is simply information exchange." "We want to.. enable people on Twitter to send money anywhere in the world instantly and in real time."

Ӿ, or Nano, is well known for a couple of reasons.

It offers instantly settled transactions. It does so at zero fees.

It has no bells and whistles whatsoever, focusing on pure value transfer.

As opposed to most other crypto Ӿ does not batch process blocks. Each transaction settles individually and asynchronously, instantly in real-time.

It's a global database allowing anyone to transfer from anywhere to anywhere, at lightspeed, with zero fees.

To be clear, Elon has never mentioned Nano. I don't know whether he even knows it exists. It just seems like an amazing coincidence that Ӿ is exactly what Elon wants for X.

Plus, who wouldn't want the world's top currencies to be $€Ӿ¥?

As Elon would say: the most entertaining outcome may truly be the most likely.