Nano uses so-called Open Representative Voting (ORV), where consensus is achieved by voting on conflicting transactions. While most of the time the approval is instantaneous, the approval does not provide a 100% confirmation because it can be “disputed”. In case of a double spending attempt, for example, the special voting will be initiated to resolve the conflict.
Lyra secures its ledger via its unique implementation of Distributed Proof of Stake (DPOS) and proprietary consensus algorithm. Each Lyra transaction is instantly approved by a group of authorizer nodes elected through a voting process, and the approval is instant and final, which allows to use Lyra transactions in real-time payment applications.
While all Nano transactions are free, Lyra uses “traditional” payment networks’ approach requiring fees for most transaction types, so authorizer nodes are paid for their work and can share their income with stakeholders (voters). While the motivation of the Nano nodes’ operators is not clear, Lyra authorizers are paid to secure, promote, and develop the network.
Lyra uses a ledger based on “block lattice” concept invented by Nano, which we also call “chain collection”, or “blocklist”, where each user account maintains its own blockchain. However, unlike Nano which is ”mono cryptocurrency”, Lyra can carry an unlimited number of custom tokens created by users. For example, any merchant can create its own tokens representing their unique loyalty reward points, gift cards, promotion coupons, etc.
Since Lyra requires transaction fee, it does not have a DDoS problem which is partially mitigated in Nano by requiring a client to do PoW to send a new transaction. Therefore, unlike Nano, Lyra clients can “shoot” uninterrupted large batches of transactions within a short time, which is required in many situations, especially in large retail and banking applications. Removing the PoW requirement also enables super light clients such as IoT microdevices and smartcards.
Finally, Lyra block lattice implementation is designed to support privacy transactions. The sender, the recipient, the transaction amount, and the account balances will be hidden from public view. In current implementation, security and privacy are achieved through traditional methods (SSL, point to point encryption). In future releases, privacy will be implemented using special cryptographic techniques based on CryptoNote, Monero, and other technologies - see Privacy Transactions on Block Lattice for more information.