NKN, standing for New Kind of Network, is a decentralized, open-source network protocol that operates on a public blockchain-based peer-to-peer (P2P) network. It seeks to address the challenges faced by the current internet, such as centralization, scalability issues, and security concerns. NKN's primary objective is to share network bandwidth and internet connectivity. The NKN network operates on a unique consensus algorithm based on Cellular Automata, which allows for system-level convergence through simple local majority rules. The NKN token is the native token of the NKN network, with a maximum supply of 1,000,000,000 tokens.

NKN operates using a global addressing scheme based on public keys, enabling direct peer-to-peer communication without centralized servers. The routing of packets is based on the Chord Distributed Hash Table (DHT), which maps each NKN address to a random and verifiable position on the Chord DHT ring. NKN's network security is ensured through a mechanism called Proof-of-Relay (PoR), which compensates miners for relaying real-world data along the network. This is a departure from traditional proof-of-work systems, which reward based on computing hash functions.

NKN has several potential use cases, including a Content Delivery system, Edge computing, D-chat (a secure messaging app), and nShell (secure remote terminal access). These applications strive to harness the collective power of the community to create a cost-effective platform for decentralized applications. By tokenizing network connectivity and data transmission capacity, NKN aims to incentivize the sharing of network resources, thereby improving the utilization of network resources and the efficiency of data transmission.

NKN was founded by Yanbo Li, Bruce Li, and Yilun Zhang, who have backgrounds in networking software and blockchain technology. The project was launched in July 2019 with the NKN Mainnet and has since grown to include up to 25,000 full consensus nodes. The project's advisors include Stephen Wolfram, creator of Mathematica and Wolfram|Alpha, and Whitfield Diffie, inventor of public-key cryptography. NKN's main goals include decentralizing internet infrastructure, improving scalability, and promoting network security.

NKN, or New Kind of Network, encourages nodes to share internet connectivity through a unique model that tokenizes network connectivity and data transmission capacity. This model is built around a public blockchain where nodes are acknowledged for sharing their internet connectivity and network bandwidth. The system operates on a Proof of Relay (PoR) consensus process, where the recognition a node receives depends on its provision of network connectivity and data transmission power. This means that network participants are encouraged to contribute more network resources than they consume. The "participation" involved in the NKN protocol refers to sharing computer hardware for network connectivity and the relaying of data.

NKN currently has over 40,000 active nodes. This indicates a substantial number of active nodes in comparison to many other blockchain networks. The high number of nodes suggests a high level of decentralization, as each node represents an individual participant in the network. This level of decentralization reflects NKN's focus on creating a distributed network, where power and control are not concentrated in a single central authority. Instead, each node in the network participates in the consensus process, which is integral to the system's operation. This element of decentralization is an integral part of NKN's design, which intends to offer an alternative to the traditional centralized client-server model.

NKN utilizes a consensus mechanism known as Major Vote Cellular Automata (MOCA). This scalable consensus algorithm is based on a Cellular Automata and Ising model. It is intended to function in a peer-to-peer network across millions of nodes. NKN also employs a Proof of Relay (PoR) system, which is a variant of the Proof of Work (PoW) mechanism where the expected non-monetary incentives a node may receive are dependent on its network connectivity and data transmission power. This system aims to motivate nodes to participate more actively in the network, with the intention of fostering a network with low latency and high bandwidth data transmission. The competition between nodes in the network is intended to foster a low latency, high bandwidth data transmission network.

NKN's Decentralized Data Transmission Network (DDTN) is a component of the NKN blockchain platform, striving to transmit any data to any node or client without the need for a central server. The DDTN operates on a network layer, with each node in the network only connected to and aware of a few other nodes, known as neighbors. This network is dynamic, allowing any node to join or leave at any time, with the intention of preventing system failures. The DDTN utilizes the network topology of Chord Distributed Hash Table (DHT) to enhance its scalability potential. Each node has an m-bit random address on the ring and is connected to a set of other nodes that have a specific distance from it. This aims to ensure that the choice of neighbors can be verified. Routing between any node pair is up to O(logN) and is deterministic and verifiable given the topology. The DDTN includes a Proof of Relay (PoR) algorithm, which verifies the relay workload for data transmission. This is achieved through a special signature chain, with a small and fixed portion of the packets randomly selected as proof. The random selection can be verified and cannot be predicted or controlled. The PoR plays a role in the NKN as the amount of data being relayed is linked to non-financial incentives.

NKN has several notable use cases and contracts. For instance, it has a contract with Chinese video giant iQIYI for a Content Delivery System and a contract with China Mobile for Edge computing. Other use cases include D-chat, a messaging app, and nShell, a remote terminal access. NKN's consensus algorithm is based on Cellular Automata, a simple local majority rule that intends to lead to system-level convergence in a small number of iterations. The project's design aims to accommodate arbitrary numbers of equal consensus nodes. NKN uses a global addressing scheme based on public keys to enable direct peer-to-peer communication without centralized servers. The routing of packets is based on Chord Distributed Hash Table (DHT), which maps each NKN address to a random and verifiable position on the Chord DHT ring.

NKN applies a routing algorithm grounded on the principles of Cellular Automata and the Ising model. This algorithm, known as the Majority Voting Cellular Automata (MVCA), aims to facilitate consensus among nodes in a scalable manner. The MVCA consensus algorithm is designed to support a network of a large number of nodes. It seeks to achieve global consensus through communication iterations between several neighbors, with an intention to be efficient in consensus time and the number of messages sent. NKN's routing algorithm is developed with a focus on data transmission security and integrity.

NKN employs a unique method known as Decentralized Data Transmission Network (DDTN) which amalgamates multiple independent and self-organized relay nodes to facilitate connectivity and data transmission capacity. This coordination is decentralized and does not necessitate trust of any involved parties. The operation of NKN is secured through a consensus mechanism that coordinates and validates the operations carried out by each node. NKN also utilizes a Proof of Relay (PoR) mechanism to validate network connectivity and data transmission capacity. This mechanism rewards nodes for contributing more network resources than they utilize. Moreover, NKN employs a consensus algorithm based on Cellular Automata to facilitate communication between nodes, and achieve consensus among large-scale nodes.