Nervos Network defines itself as an open-source blockchain network consisting of protocols. The cryptocurrency used in the Nervos Network is known as CKB coin. According to the team, this enables secure, seamless, and efficient storage of all kinds of cryptocurrencies. Additionally, the platform provides support for smart contracts. Moreover, this network also offers a second-layer scalability solution. The Nervos platform aims to achieve significant value with its crypto-economic design and the CKB coin. In this context, we will discuss the Nervos Network, its capabilities, and its advantages. We will also explore the data related to the CKB coin and discuss what it brings to the cryptocurrency ecosystem.
Nervos Network can also be described as a blockchain platform designed for global applications. The Nervos team aims for their developed platform to serve as an open network, much like the Internet. Beyond the idea of interoperability, the goal of the Nervos team is to create a platform for global applications… This statement can be considered one of the fundamental objectives of the Nervos team.
Some applications developed for the internet previously had to go through challenging processes to be adopted by users. In today’s decentralized world, it can be said that these processes now offer even worse opportunities. Nervos Network team proposes to eliminate this problem by introducing a series of integrated solutions. With these solutions, developers will find it much easier to create global applications.
What is Nervos Network Coin?
Nervos Network is a solution addressing the scalability and interoperability challenges that plague most Layer 1 blockchain networks. Taking its name from the body’s nervous system, the network shares a layered structure, including a consensus layer and a separate layer serving as an intelligent custodian, along with another layer designed for high-performance transactions and privacy protection.
The Nervos Network is designed to have a Layer 1, known as the Common Knowledge Base layer, providing shared knowledge supervision for the network. This layer serves as the foundational layer and offers a general-purpose Proof of Work (PoW) blockchain, acting as the consensus engine for applications launched within the Nervos ecosystem. Additionally, this layer possesses a native utility token called CKB.
The second layer is the computation layer where off-chain processing of transactions takes place. This layer is designed to create new states of the blockchain and can host several decentralized applications (DApps) as developers can execute the functions of their DApps using this layer.
Employing this layered approach seeks to overcome the limitations of traditional blockchain systems, achieving greater scalability, interoperability, and privacy protection. The Common Knowledge Base layer serves as the bedrock, while the computation layer adds flexibility and efficiency for processing transactions and executing DApps. Together, these layers aim to create a robust and dynamic blockchain ecosystem capable of supporting a wide range of global applications.
What Is CKB Used For?
CKB is the native token of the Nervos Network. With CKB tokens, a holder gains the right to claim a portion of the total state storage of the network. For instance, a holder with 1,000 CKB tokens can create a cell of 1,000 bytes or have multiple cells in the Nervos blockchain that collectively add up to 1,000 bytes. As CKB operates on a PoW blockchain, tokens are mined using an ASIC-resistant PoW function designed to distribute tokens as evenly as possible to ensure the network’s security.
Beyond utilizing within the storage of cells on the base layer of Nervos, the token also brings flexibility to the entire ecosystem. The fact that tokens can be exchanged for cells (and vice versa) creates an economic model where state storage fees are applied to both the space occupied and the time utilized. This economic model ensures that token holders can manage their storage needs efficiently, while also contributing to the overall stability and sustainability of the Nervos Network.
The incorporation of CKB tokens in both the base layer and the economic model of the network establishes a balanced and secure framework, where users can actively participate, incentivize token circulation, and enable continuous development and growth within the Nervos ecosystem. As a result, the token serves not only as a medium of value exchange a fundamental component that governs and strengthens the Nervos Network’s infrastructure.
How Nervos Network Works
Nervos operates on a layered architecture. The first layer consists of a PoW blockchain that provides security and stores application activities and account balances in cells. The second layer protocol is responsible for processing transactions and generating new states, including handling application activities and other additional data storage requests.
The foundational layer of the network is known as Nervos mainnet, which also offers a “Turing Complete” virtual machine with state information to support application processing through smart contracts. This virtual machine system is based on Bitcoin‘s UTXO (Unspent Transaction Output) accounting model, allowing it to store and track state changes on the blockchain.
Thanks to the cell model in Nervos, transactions, and application activities can be processed in parallel, enabling scalability without compromising the network’s security. This innovative approach makes Nervos Network a promising blockchain solution for a wide range of applications.
How Flexible Tiered Design Works?
The flexible layered design provides it with great versatility. The network’s decentralized and permissionless framework allows it to function as an accessible universal value store for all blockchain services. Nervos introduces an entirely new level of flexibility to the blockchain and cryptocurrency space, enabling developers to create universal applications that can work on any blockchain network. This innovative approach opens up exciting possibilities for the development of cross-chain applications and enhances the overall usability and adaptability of the Nervos ecosystem.
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