Nervos Network (CKB) Review

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Nervos CKB  defi token is a public permissionless blockchain and the layer 1 of Nervos that wa created on nervos.org r. CKB defi builds trust and grows it to an upper layer, making Nervos a trust network. The value store of the Nervos network, providing public, secure and censorship-resistant safe keeping  services for assets, identities and other common knowledge made in the network. 

The blockchain community has proposed many scalability solutions in recent years. In general, we can divide these solutions into two categories, on-chain scaling and off-chain scaling. On-chain scaling solutions are those that try to scale at the same layer where consensus runs. The consensus process is the core of a blockchain protocol, in which nodes exchange network messages and reach agreement eventually. A consensus is slow almost by definition, because message exchange on a public and open network is slow and uncertain, nodes must wait and retry to reach agreement in the consensus process. To scale at this layer, we can either “scale up” by increasing the processing ability and network bandwidth of nodes (but sacrifice decentralization due to high hardware and infrastructure costs), or “scale out” by sharding. The idea of sharding is to divide nodes into many small “shards”, and ask each shard to process only a fraction of network transactions. Sharding is widely adopted by Internet giants, as they face the same scalability issues when serving millions of users. However, sharding is well known for the complexity of shard coordination and cross-shard transactions, which even in a trusted environment, leads to performance degradation as the number of shards grows.

In contrast, off-chain scaling solutions acknowledge the inherent complexity of the consensus process. They recognize that consensus within different scopes incur different costs, and the global consensus created by a public permissionless blockchain is the most expensive consensus. While it is hard to scale a global consensus, we can use it wisely. Most transactions between two or more parties don’t need to be known by every node in the network, except when they are securely settled; in other words, when users want to turn their transactions into common knowledge of the network. This network scales by offloading most of the work to upper layers, with no limit on scalability. Processing transactions off-chain also brings additional benefits, such as lower latency and higher privacy.

While we agree with the general ideas of off-chain scaling, we have found that there is no existing blockchain designed for it. For example, though the lightning network is one of the earliest explorations in off-chain scaling, it has taken years to launch its testnet and is still far from mass-adoption due to the limitations of the underlying Bitcoin protocol. Ethereum provides powerful programming ability, but its computation-oriented economic model doesn’t fit well with off-chain scaling. Because off-chain participants handle most of the computation, what is required is a blockchain that can keep their assets in secure custody and move assets according to the final state of their computation. The computation-oriented design of Ethereum also makes it difficult to execute transactions in parallel, which is an impediment to scalability.

The economic models of current blockchains also face challenges. With more users and applications moving to blockchain platforms, the amount of data stored on blockchains also increases. Current blockchain solutions are concerned more with the cost of consensus and computation, and allow a user to pay once and have their data occupy full nodes’ storage forever. Cryptocurrency prices also are highly volatile, and users may find it difficult to pay high transaction fees as the price of a cryptocurrency increases.

We propose Nervos CKB, a public permissionless blockchain designed for a layered crypto-economy network.


Essential Information

Nervos Network Price $0.004969 USD
Token Name Nervos Network
Token Symbol CKB
Nervos Network ROI -45.23%
Website Link Home
Market Cap $102,326,541 USD
Circulating Supply 20,592,105,640 CKB
Whitepaper Whitepaper
Market Rank #97

More about Nervos Network (CKB):

The Nervos CKB  defi token is the layer one , proof of work public blockchain protocol of the Nervos Network. It lets any crypto-asset to be stored with the security, invariability and permissionless nature of Bitcoin while allowing smart contracts, layer two is  scaling and catches the total network value through its “store of value” crypto-economic design and native token, the CKByte.

Nervos CKB (Common Knowledge Base) is a layer 1 blockchain, a decentralized and secure layer that provides common knowledge custody for the network. Common knowledge refers to states that are verified by global consensus. Crypto-assets are an example of common knowledge.

In Nervos, the CKB and all layer 2 protocols work together to serve the crypto-economy. CKB (or layer 1) is where state is stored and defined, and layer 2 is the generation layer (or computation layer, these two terms are interchangeable) that processes most transactions and generates new states. Layer 2 participants submit newly generated states to the CKB eventually at the time they deem necessary. If those states pass the corresponding verification performed by nodes in a global network, the CKB stores them in a peer-to-peer node securely.

The layered architecture separates state and computation, providing each layer more flexibility and scalability. For example, blockchains on the generation layer (layer 2) may use different consensus algorithms. CKB is the lowest layer with the broadest consensus and provides the most secure consensus in the Nervos network. However, different applications might prefer different consensus scopes and forcing all applications to use CKB’s consensus would be inefficient. Applications can choose the appropriate generation methods based on their particular needs. The only time these applications will need to submit states to CKB for broader agreement is when they need to make these states common knowledge that has been verified by the CKB’s global consensus.

Possible state generation methods include (but are not limited to) the following:

  • Local generators on the client: Generators run directly on the client’s devices. Developers can implement the generator in any programming language.
  • Web services: Users may use traditional web services to generate new states. All current web services may work with CKB in this way to gain more trust and liquidity for the generated states. For example, game companies may define in-game items as assets in CKB, the game itself functions as a web service that generates game data, which is then verified and stored in CKB.
  • State channels: Two or more users may use peer-to-peer communication to generate new states.
  • Generation chains: A generation chain is a blockchain that generates new states and stores them in CKB. Generation chains may be permissionless blockchains or permissioned blockchains. In each generation chain, nodes reach consensus in smaller scopes, providing better privacy and performance.


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Nervos Network (CKB) Scam or Not?

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