Nervos Network is a group of protocols that aims to solve the scaling problem. Legendary networks like bitcoin and Ethereum suffer from scaling limitations.
Nervos is a network of interoperable protocols that serves as a platform for dApps and protocols. Here we will break this open-source network down for you. It is an excellent solution for a separate system to communicate, just like a nerve system. Read on to understand more about this cryptocurrency.
What is Nervos Network?
Nervos is an open-source ecosystem including different protocols that uses a series of layer-2 scaling solutions to facilitate numerous use cases.
Interoperability has been a real problem in the blockchain industry. Everyone knows that bitcoin is the grates “sore of value” blockchain in the world. But it just supports BTC, its native token, and suffers from scaling limitations.
Etherume, on the other hand, is the most appreciated smart contract platform in the world. However, the value created on the network won.t pass to the ETH token price.
So it is sufficient to say that Nervos Network as an open-source blockchain provides the best answer for the problems facing bitcoin and Ethereum.
The basic blockchain in this ecosystem is called the Common Knowledge Base, and the governance token is CKB.
The CKB lets users access storage space on the blockchain in proportion to their holding. CKB or the Common Knowledge Base is the layer one protocol in this network and uses the PoW mechanism.
The history of CKB
The Nervos Network was created, seeking a solution for the scalability problem. It was launched in 2019. It has two-layer to solve the problem of interoperability and scalability. Layer one acts as the base layer, and layer two is the application layer.
Layer one or CKB is a proof of work blockchain and features the native token of the platform known as CKByte. The CKByte incentivizes miners and provides the holder with storage space on the CKB blockchain.
It is also possible to invest CKByte in the Nervos DAO and yield.
To know the base layer of Nervos Network better, take a look:
- An enduring multi-asset blockchain
- A store of value blockchain
- secure, permissionless, decentralized
- The most outstanding solution for scalability problems so far
- A layer one that acts as a base for the layer two scaling solutions
- With developers and smart contracts capabilities
How does Nervos Network work?
As you know now, the Nervos was created to solve the scalability issue. Here we will talk about components of the network in detail:
In this layer, known as the Common Knowledge Base, the common knowledge that the whole system will need has been provided.
In this layer, the state of the blockchain is stored.
Layer 2, or the computational layer, is an off-chain solution that makes processing more transactions at one time. Developers can participate in this layer and lunch their function using the infrastructure.
The CKB consensus
CKB uses the proof of work consensus mechanism; it is the same SHA-256 system that Satoshi Nakamoto used for building Bitcoin. So it is sufficient to say that the Nervos Network borrowed the best futures of the bitcoin. Using this consensus mechanism, Nervos can process transactions faster. There are three different types of nodes in this network, which we will go through in the following.
Just like any other blockchains, miners use the PoW to verify blocks. The network works well with ASIC mining to have a better hashing power. And miners are incentivized by earning rewards in the form of CKB tokens.
Full nodes are responsible for keeping the Nervos valid. They are responsible for verifying new blocks and transmitting transactions through the network. Full nodes also receive CKB tokens as rewards.
Light nodes operated on mobile devices to solve the problem of fewer resources on mobile devices. This type of node makes it possible for everyone to participate in the network.
What is the Nervos DAO
We have talked about the possibility of locking your CKB on the Nervos DAO and earning yield, but what is a Nervos DAO?
It is a shelter used to manage storage and incentives miners. It is a store of value space that lets holders lock their tokens and receive a proportional share of the inflation.