What Is Nervos Network (CKB)?

Nervos Network is a decentralized blockchain solutions ecosystem. The platform seeks to offer a host of solutions to allow developers to build universal decentralized applications (DApps). Nervos claims that the universal DApps let users access the ecosystem through any interface and digital asset of their choice, aiming to eliminate the need for multiple wallets and exchanges. According to the Nervos Network positioning paper, the Nervos Network is built with multiple protocols and innovations with the aim to solve problems related to scalability, sustainability, and cross-chain operations. The network has also launched an EVM-compatible layer, Godwoken, for a fast and scalable platform for decentralized applications.

Nervos Network is built on the Nervos CKB (common knowledge base) blockchain, a layer-1 decentralized protocol. A layer-1 blockchain is a set of solutions that aim to improve the scalability of the base protocol. The Nervos CKB works with various layer-2 protocols integrated within the ecosystem to serve the crypto economy. These layer-2 protocols are computational layers that help the platform process the transactions on the platform. Having a multi-layered architecture, Nervos claims, helps the ecosystem achieve flexibility along with better scalability.

The platform states that ensuring the long-term sustainability of a public blockchain like Nervos is quite challenging. Hence, Nervos seeks to incentivize the stakeholders in order to attain maximum public verifiability and full node operation for the system. Blockchain nodes are compact servers interconnected to facilitate the exchange of information within the network. Likewise, the platform aims to ensure that the hardware requirements for network participation remain accessible for an open global network. Furthermore, the network intends to allocate resources in a balanced manner to provide consistent rewards and prevent “tragedy of the commons,” i.e., individual gain over community welfare. 

CKByte (CKB) is the native cryptocurrency of the Nervos Network. The token is designed to function as a secure store of value while also enabling utility on the platform. The platform collects transaction fees in CKB tokens from users and rewards block validators with the same. Moreover, users need to own CKB tokens for holding other digital assets on the platform, which, Nervos Network claims, adds value to the native token, helping it grow in substance rather than depending on speculation or altruism. The Nervos Network also allows CKB holders to lock their idle holding and receive rewards in return. Additionally, the CKB token also functions as a medium of exchange within the ecosystem, helping developers execute smart contracts and users access DApps on the platform. 

History of Nervos Network (CKB)

Nervos Network was cofounded in 2018 by Terry Tai, Kevin Wang, and Daniel Lv. Tai is a core blockchain developer, while Wang is a former IBM engineer and the cofounder of Launch School. Lv is the former CTO of imToken and Yunbi and the cofounder of KOL. The Nervos mainnet was launched in 2019, and so was the whitepaper. The CKB token also went on sale in 2019.  

The Nervos Network is essentially a team of developers with deep roots in the crypto space. The team is a diverse group with backgrounds in engineering, cryptography, token economics, and community building, with more than 95 people across the world.

How Are CKB Tokens Created?

CKB token uses the proof-of-work consensus mechanism for the creation of new tokens, facilitating mining through ASICs. Miners receive dual compensation: rewards for block creation and transaction fees collected on the platform. The network will undergo halving every four years, reducing the block reward for miners to half after every halving event. However, the network aims to regulate computation throughput and bandwidth of the mining equipment to keep the operating cost accessible and ensure network decentralization.