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Altcoin Review

What Is Nervos Network (CKB)? All You Need To Know

Author

Rickie Sanchez

Tags

Tags Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice / Slider Posts

Category

Altcoin Review

Reading time

3 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice, Slider Posts

Reading time

3 mins
Last update


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Key Takeaways

  • Nervos Network (CKB) is a blockchain platform designed to address scalability limitations in other blockchains.
  • It utilizes a unique dual-layer structure: Common Knowledge Base (CKB) as a Layer-1 for security and Layer-2 for scalability and compatibility with different applications.
  • CKB stores core assets and verifies transactions, ensuring security. Layer-2 blockchains built on Nervos handle specific application needs, providing scalability and flexibility.

What Is Nervos Network (CKB)?

Nervos Network (CKB) is a public blockchain ecosystem designed to overcome the scalability limitations experienced by other blockchains. The project’s goal is to become a universal infrastructure for blockchains. By offering a secure base layer and creating a network of interoperable Layer-2 solutions, Nervos’s vision is to support a wide range of decentralized applications (DApps) and unlock the full potential of blockchain technology.

How Does Nervos Network (CKB) Work?

Modular Design

Nervos operates on a layered system, separating core functionalities. The base layer, called the Common Knowledge Base (CKB), prioritizes security and decentralization. It uses a Proof-of-Work (PoW) consensus mechanism to validate transactions.

Upper layers built on CKB handle smart contracts and application logic. This modularity allows for scalability on upper layers without compromising the security of the base layer.

Security And Decentralization

CKB uses a Proof-of-Work (PoW) consensus system, which makes it resistant to attacks and ensures no single entity controls the network.

Scalability And Interoperability

Nervos addresses scalability limitations by separating state and computation. Upper layers process complex computations, while CKB securely stores the final state. This enables upper layers to scale to meet specific application needs.

CKB’s design promotes interoperability by supporting various cryptographic primitives. This allows developers to build Layer-2 networks compatible with Nervos, creating a broader ecosystem.

Additional Features

Nervos uses a unique virtual machine (CKB-VM) based on the RISC-V instruction set. This provides a low-level foundation for executing smart contracts, offering developers more flexibility than traditional virtual machines.

Nervos Network (CKB) Token And Tokenomics

Tokenomics

The CKB token is the native cryptocurrency of Nervos Network. It is used for:

  • Security
  • Storage
  • Payments for storage

Token Details

Total Supply ∞

Circulating Supply 43,773,700,478 CKB

Current Price $0.01806

Market Capitalization $790,347,357

This information is current as of March 22nd, 2024, and the token’s price, market value, and available supply may fluctuate.

Distribution

The distribution of Nervos Network’s token, CKB, follows a two-part structure:

Primary Issuance

  • Finite supply – 33.6 billion CKB in total
  • Halving schedule – Similar to Bitcoin, the issuance rate halves every four years.
  • Awarded to miners – Miners receive CKB as a reward for securing the network.
  • Fair distribution – This approach aims to decentralize the network’s ownership.

Secondary Issuance

The secondary issuance differs from the primary issuance (meant for miners initially) which gets halved over time. The secondary issuance is uncapped, and the ongoing issuance of CKByte tokens is at a fixed rate of 1.344 billion annually.

It is also designed to collect state rent and make sure miners are rewarded for network security in the long run, regardless of transaction volume.

Here’s a breakdown of the initial distribution at the time of mainnet launch in 2019:

  • Public Sale (20%)
  • Burn (34%)
  • Ecosystem (25%)
  • Team (18.5%)
  • Others (7.5%)

Where Can I Buy Nervos Network (CKB)?

Binance Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.

KuCoin KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.

Gate.io This exchange provides CKB, other cryptocurrencies, and margin trading options.

Is Nervos Network (CKB) A Good Investment?

Pros:

  • Scalability – Nervos Network utilizes a unique layered architecture that addresses scalability issues other blockchains like Ethereum face. By separating application logic from the core protocol, it can handle a high volume of transactions without sacrificing security.
  • Interoperability – Nervos Network is designed to be interoperable with other blockchains, allowing ecosystem communication and asset transfer.

Cons:

  • Complexity – Nervos Network’s layered architecture can be more complex for new users to understand than simpler blockchain structures.
  • Limited Adoption – Nervos Network is a new project compared to established players like Ethereum.

Final Thoughts

Nervos Network (CKB) presents a solution to scalability limitations in blockchains through its layered architecture. While the concept might seem complex for beginners, Nervos’s focus on security, scalability, and interoperability makes it well-suited for future adoption in the blockchain space.