The Nervos Network is a public blockchain and open-source ecosystem, which involves a collection of protocols designed to solve the biggest limitations blocking popular crypto platforms, such as Ethereum and Bitcoin. The Nervos CKB or Common Knowledge Base is layer 1 of the Nervos Network that works on the proof-of-work public blockchain protocol. This layer allows for crypto assets to be stored with the same immutability, security, and permissionless nature as enjoyed in Bitcoin.
Layer 1 is responsible for enabling layer 2 scaling and smart contracts to capture total network value through its native token, CKByte, and crypto-economic design.
This guide will explain what Nervos Network is all about, the purpose it is designed for, the team behind it, the way it works, and the various uses and applications.
What Is Nervos Network Designed For?
Nervos CKB is designed to be the first general-purpose blockchain working as PoW multi-asset and store of value for the new crypto-economy. It takes the best aspects of Bitcoin, which is a decentralized store of monetary value while being a peer to peer payment network.
The Common Knowledge Base (CKB) applies these aspects and helps in generalizing them for the storage support of unlimited crypto-assets that go beyond transactions and electronic cash. The Nervos CKB layer acts as the fundamental Layer 1 in this Proof of Work blockchain. It creates the foundation for all layer 2 integrations, protocols, and scaling solutions for the overall Nervos Network.
Who Is The Team Behind Nervos Network?
The team behind the Nervos Network has deep roots in the crypto space. The past projects built by the Nervos Network core team involve CITA, Peatio, Spark Pool, imToken, and Ethereum clients (ruby-ethereum and pyethereum). They have also worked on core protocol development and research and development for Bitcoin and Ethereum.
The core team involves Terry Tai, Daniel Lv, and Bo Wang. Tai is the Jack of all Trades at Nervos Network. He worked as the core developer at Yunbi & Peatio cryptocurrency exchange. He also co-founded Teahour.fm, which is a popular tech podcast in China.
Lv is the community manager for Nervos Network. He is the former co-founder of KOL and ruby-china.org, and former CTO of Yunbi and imToken, which is one of the most popular Ethereum wallets in the world. Wang is the Layer 2 Researcher. He was a Director of Blockchain Lab at China Banknote Printing and Minting Corporation and former CPO at Cryptape.
Nervos Network has an impressive advisor backing as well. David Zou is a former chief economist at Bitmain. Jiasun Li is the Assistant Professor of Finance at George Mason University School of Business with research focused on crypto.
How Does Nervos Network Work?
Nervos Network is a collection of layer 2’s, protocols and public blockchains that represent the entire Nervos ecosystem. It is underpinned by CKByte token and Nervos CKB.
Nervos employs as plasma chains, side-chains, and state channels in its layer 2 solutions as a core design principle for scaling the blockchain system. Layer 2 solutions are implemented to achieve high performance and TPS instead of comprising the security and decentralization of the base layer through the largely untested consensus mechanism.
This allows for minimal transaction cost to layer 1 blockchains and brings almost unlimited transaction capabilities to the network. The network through this architecture solves the scalability trilemma in a secure, permissionless, and decentralized manner.
CKB is used by enterprises, developers, and users to deploy layer 2 solutions, protocols, Dapps, and blockchains.
What Are Current and Future Applications of Nervos Network?
The native token of the Nervos CKB is the CKByte (Common Knowledge Byte). The token represents ownership in the Nervos Network Common Knowledge Base blockchain. It is designed to be used as a value store as well. Users can employ CKBytes in resource management. The token is equivalent to owning land. It can be used to store smart contracts, smart assets, rent out space, and own other types of “common knowledge”.
CKByte scales when there is a creation of value through other assets, data, tokens, and smart contracts on the network. It is expected that the demand for CKByte token will grow proportionally to the growth of Nervos Network. This crypto design allows for "store of asset" properties and aligns network participants.
The Nervos DAO is used for managing state storage and providing sustainable incentives to miners, which acts as an inflation shelter against secondary issuance. Users can lock their tokens in Nervos DAO to receive a proportional share of this inflation. This protects the tokens from dilution beyond a fixed cap.