What is Nervos?
The developers mention Bitcoin and Ethereum on the homepage of their website. First, they talk about their advantages and then about their weaknesses. For example, they say that Bitcoin is the most secure and trusted “store of value” blockchain in the world today. However, Bitcoin can only securely store its own native token (BTC) and was not designed for future scaling solutions.
On the other hand, they say that Ethereum is the most used smart contract platform. But value created on the network is not captured by ETH’s token price.
Then the developers provide definitions for the key terms. Memorize them to avoid confusion.
- The Nervos Network is an open-source, public blockchain ecosystem and collection of protocols solving the biggest challenges facing blockchains like Bitcoin and Ethereum today.
- The Nervos CKB (Common Knowledge Base) is layer 1, proof of work public blockchain protocol of the Nervos Network. It allows storing any crypto-asset while enabling smart contracts and layer 2 scaling. Moreover, the network has a native token – the CKByte.
A bit of theory. Layer 1 or on-chain solutions are changes in the blockchain that involve serious chain transformation. Examples are increase in block size (to increase the volume of transactions) or decrease an average block find time (to increase the network capacity thanks to the higher number of blocks). It can be achieved by on-chain network updates or forks. Hence the name.
Layer 2 solutions are introduced over the mainnet and don’t require a transformation of the existing blockchain. As if they were operating outside the main blockchain while allowing to lessen the network load. The Lightning Network in Bitcoin is an example of the layer 2 protocol.
To sum up, the developers point out the following advantages of Nervos CKB:
- a sustainable multi-asset blockchain
- maximally secure and censorship-resistant
- solves challenges of leading blockchains in the industry
- supports scaling solutions
- native token CKByte operates in the interests of all network users
- supports smart contracts for developers
Moreover, the developers got financing in the amount of $28 million from such serious investors as Sequoia China, Polychain Capital, Multicoin Capital, and FBG Capital.
What Is CKByte
CKByte is the native token of the Nervos CKB. It is designed to be used as a store of value and for resource management inside the blockchain. CKByte can be used to store assets, execute smart contracts, or rent out your space on the blockchain. This is what the developers say – what exactly it means for the project is still unclear.
CKByte scales with value creation through other tokens, assets, data, and smart contracts on the network. The developers expect the demand for the CKByte token to grow as the Nervos network grows.
The CKByte token sale is scheduled for the third quarter of 2019. The mainnet will be launched in the fourth quarter of 2019.
Advantages Of Nervos Network
The Nervos Network is the ecosystem of Nervos and is a collection of protocols, layer 2 solutions, CKByte token, and other components of the project. The Nervos developers don’t want to introduce “untested and novel consensus mechanisms in order to achieve high performance and TPS.” They prefer layer 2 solutions instead. There are three reasons for that.
- Unlimited blockchain scalability
- Minimal transaction cost
- No risks for the main chain
The developers think that this is the only way to solve the scalability trilemma.
Scalability trilemma is a blockchain problem according to which chains cannot be decentralized, secure and scalable at the same time. They can possess only two qualities out of three. For example, Bitcoin is secure and decentralized, but it has issues with processing more transactions.
Nervos CKByte Token Sale
The CKByte token sale will be held on CoinList in October 2019. Before that, it’s impossible to buy tokens on other platforms, so beware of fraud.
Keep in mind that all the details about the token sale will be available exclusively through the official CKB channels. The company doesn’t have any third-party representatives.
Nervos CKByte Mining
CKByte mining will start on the 2Miners pool as soon as the working network of the project is launched in October 2019. We will keep you posted on our Twitter and Telegram channel.
In the meantime, check out our crypto chat.