Nervos Network and Nervos (CKB) serve as the Utility Token on the Nervos Blockchain network. Users have the option to lend/lock their Nervos (CKB) in order to receive Rewards.
To gain a deeper understanding of Nervos Network, read the following article from AZCoin.
What is Nervos Network?
Nervos Network is an open-source project, a collection of protocols and a public blockchain ecosystem. Nervos Network addresses the major challenges that platforms like Ethereum or Bitcoin are currently facing.
The core design principle of Nervos is that layer 2 will run various solutions, including Nervos App Chain focusing on scalability and dApps for users.
Instead of layering to protect base layers through unproven and novel consensus mechanisms to achieve high performance and TPS, Nervos Network uses layer 2 with nearly unlimited transaction capacity and minimal transaction costs for layer 1 blockchain with secure and decentralized design.
Nervos Network is a decentralized application network with layered architecture. CKB (Common Knowledge Base) is the blockchain protocol designed to serve the entire ecosystem.
Aligned with the goal of building a hierarchical architecture for all higher layers and enabling the deployment of infinite capabilities of various Layer 2 protocols.
As mentioned, the Nervos Network system consists of 2 layers:
- Layer 1: CKB, a public open blockchain structure based on Proof of Work (PoW) mechanism.
- Layer 2: Nervos expands centralization capabilities with solutions like Side-chains, State Channels, and Plasma Chains.
What issues does Nervos (CKB) seek to address?
The Nervos (CKB) development team has identified several challenges faced by current-generation blockchains:
- Earlier generations of blockchains, such as Bitcoin and Ethereum, have run into scalability issues.
- Some technologies have been adopted to address scalability, such as sharding. However, this technology has its own problems, including complex architecture and diminishing efficiency as the number of shards increases.
- Off-chain scaling solutions often impose high consensus mechanism costs on permissionless public blockchains.
- As the number of users and applications running on a blockchain grows, the amount of data stored on it also increases.
- Current blockchain solutions primarily focus on minimizing the cost of consensus and computation. At the same time, they allow users to pay to have their data stored on selected storage nodes. However, the price of cryptocurrency is constantly changing, and users may struggle if the price of cryptocurrencies increases.
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What is Nervos (CKB)?
CKB is the Utility Token within the Nervos ecosystem. It serves as a utility token for the Nervos Network, used to manage resources, incentivize miners, and allow owners to allocate storage space on CKB’s blockchain.
- Token Code: CKB
- Platform: Nervos
- Blockchain Token Type: Utility
- Token Standard: undefined
- Smart Contract: undefined
- Total Supply: 33,600,000,000 CKB
- Circulating Supply: 12,375,988,800 CKB
Token Distribution
34% of tokens were sold, with 14% in a Private Sale at around $28 million USD in early 2018 (1 CKB = $0.006) and 20% allocated for Public Sale.
What is CKB used for?
- Pay for transactions on the Nervos Network
- Earn rewards by lending or staking CKB in NervosDAO
- Hold CKB to gain storage on the CKB network. The amount of storage received is proportional to the amount of CKB held
- Stake CKB in NervosDAO to use services. When finished using the services, the CKB can be withdrawn
How to get CKB
- Buy CKB on an exchange
- Participate in an upcoming sale
- Mine CKB using hardware, as the token uses a Proof of Work consensus mechanism
Is it safe to store CKB myself?
- CKB can be stored in Nervos’ own wallet: https://github.com/nervosnetwork/neuron
- It can also be stored on exchanges that support the token. (However, the token is not currently listed or traded on any exchanges.)
The Future of CKB Token
Due to the lack of in-depth information regarding the project and the development team’s future plans for the token, it is challenging to predict CKB Token’s value in the absence of specific information.
However, by analyzing the project’s model as a public, permissionless blockchain with a two-layer architecture designed for dApp development, it is possible to make certain inferences about CKB Token’s potential. As the number of dApps, data stored, and users within the ecosystem grows, the demand for CKB is likely to increase.
Hopefully, more detailed information about the project and CKB Token will become available in the future.
Should you invest in the CKB Token?
The project’s private sale round was held in 2018. Its administrators have confirmed that there is no information or plan for an IEO/ICO for subsequent fundraising rounds. Therefore, it is almost impossible to buy tokens before they are listed on an exchange at this time.
For those who want to invest in the CKB token after its official release, here are some key notes to consider:
Testnet
The project started in January 2018 and is currently in testnet. You can check it out here: https://explorer.nervos.org
Mainnet
The mainnet is expected to be launched in the second or third quarter of 2019, along with the TGE. However, there is no official announcement yet on the exact time of this event.
Token
The project has not yet officially released its token. CKB is a utility token used for purposes such as transaction fees, service fees, etc.
Note: After the successful launch of the mainnet, the token will be able to function properly.
Conclusion
If you are truly interested or hopeful about Nervos Network, you can follow the news and observe the upcoming sale of CKB to gain your own experience. Take into account the Evaluation Process to guarantee the credibility of your investment. Thank you for always being interested and supporting AZCoin articles.
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
