Nervos Network (CKB)

Introduction to Nervos Network (CKB)

It appears that a modular architecture is increasingly becoming the go-to model for many emerging blockchain networks these days, and the Nervos Network is no different.

To that end, it’s composed of a Layer 1 known as the CKB, short for the Common Knowledge Base, over which several other layers may be built, complementing it.

But every blockchain needs consensus, and surprisingly, the consensus mechanism that the CKB uses is proof-of-work (PoW), all while supporting multiple cryptographic primitives.

And so, it’s able to interoperate with sidechains, Layer 2 networks, and heterogenous blockchains. On it, developers may build various decentralized applications (dApps), all with account abstraction reaching the protocol level.

However, what does Nervos seek to achieve with its modular architecture, exactly, you might be wondering?

That would undoubtedly entail solving the scalability or blockchain trilemma, ensuring outstanding decentralization, security, interoperability, and flexibility on its base layer, with its upper layer providing unparalleled scalability.

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The Genesis of Nervos Network

The Nervos project was founded in 2018, and underlying its vision was the search for a solution to all the scalability issues plaguing Layer-1 networks, particularly those smart contract platforms back then.

The whole idea was to create a blockchain that was capable of satisfying what enterprise-level use cases demanded in terms of performance.

So, all that development eventually led to the network’s mainnet launching in November 2019.

The blockchain is public and its architectural design is different compared to what you’d normally see within the blockchain space.

Hence, its infrastructure is divided into two layers, which comprise a performance-centric application layer, i.e., Layer 2, and a single base layer, i.e., Layer 1.

Besides that, the development team at Nervos has been making a set of protocols so that the environment and scalability needed to support applications can be provided.

Core Technologies of Nervos Network

There’s a lot that comprises the Nervos Network’s layered architecture. You have the CKB-VM, the CKB itself, Godwoken, NervosDAO, and more.

Starting off with Nervos’ base layer, i.e., the CKB leverages a generalized and novel UTXO model for its accounting needs, and as for transactional and smart contract execution, it uses a RISC-V instruction set-based VM (virtual machine). Due to it supporting numerous existing and prospective cryptographic primitives, every type of diverse Layer 2 network can be built on top of it.

Nervos Network’s Approach to Scalability

As of now, most blockchains, during their initial development phases have had to make some kind of architectural tradeoffs or accept sacrifices on some end, whether it be scalability, security, or decentralization.

For instance, there are those rather popular high throughput blockchains like Binance Smart Chain and Solana that in their efforts to optimize for scalability end up sacrificing decentralization, and considering how decentralization can be tied to security, there may be a couple of sacrifices made there too. But then the blockchains that do focus on security and decentralization lack ample scalability at the end in that only a few transactions may be processed per second.

To address this problem, a lot of blockchains are now moving away from that monolithic blockchain design, which just means having consensus, data availability, and transactional execution all occur within the same layer, towards a design that’s more modular, where each of these functions can be split between different layers.

Realizing earlier on that scaling to global ubiquity without having to sacrifice decentralization and security could be via a layered architecture, Nervos made sure to incorporate a modular design from the ground up.

Smart Contracts and DApp Development on Nervos

Another aspect worth a mention is how Nervos supports multiple virtual machines, such as the EVM, aka the Ethereum Virtual Machine, allowing developers to implement smart contracts while leveraging current frameworks and tools. With this approach, developers are provided with a lot more they can work with, and interoperability is promoted as well, since the application layer may interact with other blockchains, enabling data and assets to be seamlessly transferred between networks.

Nervos Network in the DeFi Space

DeFi was among the very first areas where blockchains could truly shine, since there was the prospect of increased transparency, trust, efficiency, and more. The term DeFi is short for decentralized finance. Around 1.7 billion people in the world lack access to basic financial services, and miss out on taking part within the massive potential for wealth generation they hold in the global economy.

With DeFi, such exclusions can be eliminated as there’s no need for gatekeepers or intermediaries. The unbanked of the world can thus access P2P fund transfers or loans without having any analog requirements for identity thrown at them, like birth certificates, and whatnot, which many people within developing nations don’t possess anyway. But, it’s not just the developing nations that could benefit from DeFi; the increased autonomy, privacy, and security can be a welcome opportunity for many, not to mention the convenience of it all.

However, just because something has the potential to achieve greater things doesn’t necessarily mean that it will be achieved, and this has certainly been the case for DeFi, unfortunately. Why? because of that aforementioned trilemma. The scalability and security needed to truly “bank the unbanked” are a lot, and as of now, there aren’t a ton of blockchains capable of doing that. But with modular infrastructures, things may appear more promising. 

Solve that trilemma for good, and the true potential of DeFi can finally be accomplished. With that, you have the potential to hold a lot of sway within the DeFi realm too, and many services will be looking to integrate with your network. Still, whether or not Nervos has truly solved that will only be tested when there are a ton of users using it, and right now, there isn’t much of that going around here, and it could certainly do with more promising dApps.

The CKB Token: Utility and Functionality

The Nervos Network’s native token is CKByte, or just CKB. As for what utility it holds, it’s a pretty standard incentivization and governance token. However, where it may stand out is its native token issuance in that there are two types, known as secondary issuance and primary issuance. And like Bitcoin, it has its own smallest indivisible unit too, called the CK Shannon, where one CKB is equivalent to 100,000,000 CK Shannons.

The primary CKB issuance has its supply capped at 33.6 billion tokens, and every four years it halves, much like Bitcoin. However, that isn’t the case with its secondary issuance, the supply of which is constant. 

As for initial token allocation, or rather, the token allocation of the primary issuance, you have 35.5% allocated to the token sale, 17% to the ecosystem, 2% to the foundation, 5% to strategic partners, 15% to the team, 0.5% to the testnet, and 25% to burn.

Mining on Nervos Network

Due to its consensus mechanism, mining serves a crucial role within the decentralization and security of the entire ecosystem. Miners are thus important members of the Nervos community and are compensated for their services in CKB. What they get could align with their interests, so that every user on the blockchain benefits, as mining can be profitable. Finally, to get a bit more into the specifics, in its mining, Nervos utilizes a hashing algorithm called Eaglesong, and ASICs are used within the CKB mining process as well.

How to Acquire and Store CKB

So, are you interested in getting some CKB? Well, fortunately for you, there are many exchanges that are offering this token, including some of the popular ones like KuCoin, Binance, Uphold, and HTX Global. However, eventually buying the tokens may take some time, as you’ll need to create an account and there’ll likely be a KYC process to go through too. But, once you get done with that, buying it shouldn’t be so hard. After all, a simple swap should get the job done. 

Still, once you’ve bought them, consider a safe place to store them, perhaps a cold or hardware wallet that stores your funds offline.

Market Performance and Adoption of CKB

As for how the token has been doing lately, it has been performing well, like many other tokens now that the bear market is over. Still, it hasn’t yet topped its all-time high of $0.04 in 2021. Currently, it’s trading at $0.024, and due to its performance, adoption rates appear positive too, though it remains to be seen whether it’s able to continue those for long.

Conclusion: The Strategic Vision of Nervos Network

Nervos claims to have solved the blockchain trilemma. However, the number of blockchains that claim the same isn’t by any means few, and since adoption rates have not yet reached the scale that can best demonstrate that assertion, the claims remain untested, with no way of proving their legitimacy, no matter how good things appear on paper. So, while there could be a lot of potential in its offerings, its future prospects, like many blockchains, remain unpredictable, both in the blockchain space and outside.

We Coin-Labs.com provides only objective information about Nervos Network (CKB).
Therefore, we are not responsible for the investment decision in Nervos Network (CKB) and the resulting loss.

Nervos Network (CKB) Basics

Here are some factors that investors should consider before investing in Nervos Network (CKB).

Cryptocurrency Features	Nervos Network (CKB) (CKB)
Publisher or Developers	Nervos Foundation
Headquarters (Registration Number)
Symbol	CKB
Platform
Published Date (CMC Registration)	2024-11-01
Max Supply	No limit

Reliability Score of Nervos Network (CKB) in 2024

These are indexes mesuring the investment reliability of Nervos Network (CKB) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 4 Exchanges
Number of Available Pairs Worldwide	146 Pairs
Market Cap of the Cryptocurrency	204,182,056 USD (Rank #234)

The table above shows the result of investment suitability evaluation for Nervos Network (CKB).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Nervos Network (CKB) Price

Here are the price and recent trading volume of Nervos Network (CKB). (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Nervos Network (CKB)
Nervos Network (CKB) Price	0.012 USD
Price Change 24h	-2.82%
Price Change 7d	-10.59%
Trading Volume 24h	26,685,497 USD
Trading Volume Change 24h	14.22%

Cryptocurrency Metadata

You can check the development status and social media information of Nervos Network (CKB) through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Nervos Network (CKB)

Here are the top ten world crypto exchanges where traders can buy Nervos Network (CKB) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Listed	https://www.binance.com/en/trade/CKB_USDT
Coinbase	Not listed
Kraken	Not listed
KuCoin	Listed	https://www.kucoin.com/trade/CKB-USDT
Bitfinex	Not listed
OKX	Not listed
Huobi	Listed	https://www.htx.com/trade/ckb_usdt
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Listed	https://www.gate.io/trade/CKB_USDT

Frequently Asked Questions