Common Knowledge Base or CKByte ($CKB) is a native token of the Nervos Network which is an open-source public blockchain ecosystem and collection of protocols designed to offer a network that could replicate all the advantages of the Internet.
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Nervos Network
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What Is Nervos Network?
The Nervos Network is an open-source public blockchain ecosystem and collection of protocols designed to offer a network that could replicate all the advantages of the Internet. It basically recognizes the clear segregation problem caused by the need to access and interact across different networks to develop Internet apps. By providing one blockchain that can be easily built upon and that can reach every other blockchain, Nervos has come up with an excellent solution to some of the challenges faced by major blockchains like Bitcoin and Ethereum. With their motto of the “Universal Passport to Blockchain” they’ve built a platform able to achieve some really interesting features that would easily seem too good to be true if there wasn’t such a talented team of developers behind this exciting project.
Just like a STOP sign or a green light are well-understood concepts anywhere around the world, the Nervos Network wants to become the blockchain where common knowledge is stored. That could take many different forms and shapes, with the shared feature that all of it will be secured within a cell-like model that has some wonderful advantages to it. This is probably the reason why their native token is called the Common Knowledge Base or CKByte ($CKB).
Not only does the CKByte act as a value token behind smart contracts like Ethereum, but it also serves the purpose of the store of value with a very well-thought reward system to ensure its consistent valuation. This system requires users to hold CKBytes to be able to store assets on the Nervos blockchain, which brings up demand and price for CKB tokens that will later transfer the increase in value to higher mining rewards, which will then incentivize mining and end up in higher network security. Achieving this last step makes more people want to transfer their assets to the Nervos Network, and that just closes the cycle where the token as the store of value is guaranteed.
Pros and Cons of Nervos Network
Advantages of Nervos Network
The Nervos Network has been able to solve the Blockchain trilemma where usually only two features out of scalability, security, and decentralization can be chosen simultaneously. The majority of projects forgo scalability to ensure the remaining two, which automatically makes them much less efficient in the number of transactions per second allowed. Nervos, on the other hand, operates with layers to solve the trilemma in a very similar way as the Lightning Network does. There is Layer 1, a shared resource focused on efficient use with a broad consensus by all nodes, which is used for verification of transactions that ensures security and decentralization. And then there’s Layer 2, used for computation and transaction capacity that make up for the scalability and usability forgone in Layer 1. Furthermore, the project is lucky to have an amazing team of highly skilled professionals with successful careers in Silicon Valley prior to the Nervos foundation. Their access to Asian markets and investors like CMB International is a key asset to the project, just like it is to have Sequoia Capital as one of their many investors as well.
Disadvantages of Nervos Network
There is currently no official option to use the CKByte tokens for staking, even though holders can deposit them on the Nervos DAO in exchange for rewards and have a similar experience as staking. At the same time, just as their reward system helps ensure the store of value of their token, a day may come when transaction fees will become much higher due to the intense activity of the mining process, which is what’s happening nowadays with gas fees on Ethereum. A certain equilibrium between price and mining incentives needs to be established to prevent users from switching to other blockchains in the long run.
Where to Buy Nervos Network?
You can currently buy the CKByte token on the following exchanges:
Storing CKB: Best Nervos Network Wallets
The project has a large list of official custody wallets displayed on their website, of which we highlight:
- Neuron (native wallet)
- imToken
- ABC Wallet
- Bitpie
- Hoo
- RenrenBit
- Token Pocket
Conclusion
With the Nervos Network, it is now possible to create an app on a blockchain that can reach users on a different blockchain, as well as use one cryptocurrency and one interface to interact with every single blockchain. Plus, their open-source nature allows the adoption of their code to every blockchain to ensure a fully decentralized experience. The list of advantages brought by the project is long and exciting, and with a market cap of over 600 million dollars at the time of writing, it looks like a promising blockchain that could see a lot of growth in the future. Their value proposal seems to solve many of the problems that are currently a challenge for other projects, and with a solid team of developers and investors backing the core of the platform, they’ve got all the tools to become a leading network of security, decentralization, and scalability.
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