Exchange Nervos Network (CKB)

Nervos Network is an open-source public blockchain ecosystem and a collection of protocols. The Nervos Common Knowledge Base (CKB) is a Layer-1 Proof-of-Work blockchain protocol of the project. It also has a Layer-2 solution, thus enabling smart contracts on the network and providing ways for scalability. The advantage of the Nervos is that it can run the software of other networks without a hard fork while providing a high level of security of PoW. 

Layer-1 is also referred to as the verification layer, while Layer-2 is the generation layer. The project is named after the nervous system in the human body as it kinda repeats its structure. 

The vision of the project is to create an ecosystem where users can easily move the data from one network to another. The project team aims to connect as many projects as possible and let the main network evolve along with them. 

The network was originally built in 2018 with the intention to solve the scalability issues that most Layer-1 networks dealt with at the time. The initial idea was to create a solution with improved performance for the enterprise use cases. In 2019 the Nervos Network mainnet was launched. 

The Layer-1 or Common Knowledge Base consists of a Proof-Work-based Nakamoto consensus, virtual machine, cells-based state model, state-oriented economic model, and peer-to-peer network. Thanks to PoW, Nervos Network is censorship-resistant. As a peer-to-peer network, it allows the nodes to communicate in an optimal, secure way. 

The cell model of Nervos mimics Bitcoin’s UTXO model and spent coins are not removed but marked as spent. 

CKB generates trust and extends it to the upper layers, making Nervos a trusted network, while also being a store of value of the blockchain, providing public, secure, and censorship-resistant custody services for assets, identities, and other common knowledge stored on the network. Networks of Layer-2 process most of the transactions and generate new states. Participants of Layer-2 submit the newly generated states to the CKB whenever they see it necessary. The states need to pass the corresponding verification by the nodes on the global network. If they do so, CKB securely stores them on the peer-to-peer node. 

Due to the layered architecture of the network, the state and computation process are separated so each of them is more flexible and easier to scale. Interestingly, the networks of Layer-2 can apply different consensus mechanisms, but CKB always stays the lowest and provides the most secure consensus on the Nervous network. 

Recently the Nervos Network has launched another Layer-2 solution, called Godwoken, on its mainnet. It is an Ethereum Virtual Machine compatible Optimistic Rollup, which can be applied to build the Dapps across the blockchain and easily transfer them to the Nervos Network. Additionally, there was the Oblivion NFT marketplace launched on the Nervos mainnet. 

CKB is the native token of the Nervos Network. It is used to buy the storage on the network's mainnet and to execute the smart contracts. CKB is also used to pay the transaction fees and rewards to the miners. Since the date of launch, there were 33.6 billion tokens. 25% of them were burnt, 21,5% were allocated to the public sale investors, 15% went to the team with a four-year vesting program, 17% were sent for the ecosystem funding, 14% to the private sale investors, 5% were saved for the strategic funding partners, 2% kept for the foundation and 0,5% for the platform’s testnet incentives.