Over the past few years, there has been significant growth in the DeFi space. However, one of the major issues keeping DeFi from meeting its actual potential is the scalability issues such as network congestion and high gas rates.
Currently, there are a host of multi-chain tools, solutions, and other services are already available for testing purposes. One of the projects that have the potential to become DeFi’s next big ecosystem in the blockchain space is the Nervos Network.
The Nervos Network (CKB) is an open-source public blockchain ecosystem. The Nervos network utilizes a unique blend of dual-layer architecture to provide improved interoperability across the entire blockchain market. The dual-layer design also provides the platform with added functionality and scalability. Interestingly, the platform is named after the human nervous system to depict the purpose it aims to serve in the market i.e. act as a way for separate systems (different blockchain ecosystems) to communicate with each other.
What is Nervos Network?
The Nervos Network is a blockchain application for universal applications. The project aims to solve the issue of interoperability and scalability which is currently one of the biggest problems faced by the blockchain ecosystem. Keeping their motive in focus, Nervos Network uses its proof-of-work Nervos Common Knowledge Base (CKB) blockchain to let developers create naturally multi-chain applications. The vision of the project is to provide users with the ease to move assets from one network to another.
Nervos is an open-source public blockchain ecosystem and a collection of protocols intended towards creating a base for a universal internet-like public network. With a flexible, foundational blockchain called the Common Knowledge Base (CKB), the Nervos Network empowers a new generation of interoperability through scalable layer-2 solutions to bring about an ecosystem of Universal Apps. Nervos’ blockchain is a layer-1 protocol that uses Proof-of-Work (PoW) consensus and supports smart contract development. It also consists of a series of layer-2 scaling solutions to facilitate high-volume use cases. Nervos’ native token (CKByte or CKB) allows users and developers to claim storage space on the Nervos blockchain in proportion to their holdings.
Common Knowledge Base: The underlying blockchain of Nervos Network is named the Common Knowledge Base (CKB). CKB is open-source, permissionless, and is secured through the Proof-of-Work consensus algorithm. However, to differentiate it from available blockchain ecosystems, it is purposefully built for optimal Layer-2 development and scaling. Due to its native token the CKByte ($CKB), CKB works as a secure store of value blockchain while allowing developers to create smart contracts and providing arbitration for upper-level layers.
What problems to Nervos Network Solve?
Below we have listed the problems Nervos Network aims to solve.
Blockchain Trilemma: Public and private blockchains suffer from the blockchain trilemma. Permissioned blockchains prefer transaction throughput and speed over security and decentralization. Whereas, Public blockchains maximize security and decentralization limiting scalability. Nervos Network strives to become a bridge between public and private blockchains by introducing dual-layer architecture. Integrating a secured public chain as a Layer-1 and a high-performance application chain as Layer-2, the project aims to make blockchains easily usable for enterprises and end-users.
Lack of Interoperability: Another problem that is the root cause hindering the growth of the blockchain ecosystem is the lack of interoperability. Currently, the blockchain market is fragmented. Even though there are thousands of networks, all with their unique niches, however, operating completely independent of each other. Unfortunately, these networks lack the capability to exchange data in a streamlined manner. Furthermore, developers often waste time recreating features that are readily available on other platforms. Nervos Network aims to provide a way for inter-communication among these platforms, eliminating the need for developers to start from scratch. Also, it eliminates the need to use multiple wallets, exchanges, and remembering various passwords.
Scalability Issues: Almost all of the blockchains (especially the early ones) suffer from scalability problems arising due to several factors. In early blockchains, it’s the way the consensus mechanism operates. E.g., even though the Proof-of-Work algorithm is the most secure, it requires the most resources and time to complete transactions. Nervos Network aims at reducing scalability issues through the use of a dual-layer architecture. By placing computational requirements of the primary blockchain, Nervos can scale vertically to meet the needs of the masses. This strategy provides the network with high performance and the security of a PoW network.
Lack of Programmability: another significant problem that Nervos Network aims to solve is to reduce the developer restrictions. Currently, developers must choose a network to create their Dapps on. The downside to using a single network is that you are then restricted to the network’s technical capabilities. This issue becomes a major hold-up for developers when they require different services or consensus mechanisms for their applications to function properly. Nervos has a collection of protocols that are designed to empower developers to create universal apps. This strategy allows developers to sort through multiple solutions and find the best user experience option. Notably, developers can build and leverage any virtual machine using the Nervos Network.
Benefits of Nervos Network
The Nervos Network provides several benefits that make it an interesting project. The network is structured in a decentralized and permissionless manner. According to its developers, it is this structure that enables the platform to operate as a “Store of Assets” blockchain. The main goal of the project is to lay the foundation for a universal public network that is globally accessible and censorship-resistant that provides access to all blockchain services and features.
- Economical Sustainability: The driving factors that make the Nervos Network sustainable are its tokenomics and design. The developers have integrated common-sense crypto-economics to add value to the project’s token over time. Moreover, the platform serves a valuable role in the market that blockchain developers have long desired. These factors along with the layered architecture make the Nervos Network well prepared for the future.
- Security: To ensure that users’ projects and tokens are safe, Nervos Network incorporates sophisticated security protocols. The network has been audited by third parties and is open-source. Furthermore, Nervos Network hosts Hackathon with $150K in cash prizes. The goal of the hackathon is to find weaknesses in projects and listings on the network.
- Expandable: Nervos Network provides flexibility that’s on an entirely new level for the market. The layer-2 architecture enables scaling and interoperability that has the capability of powering a market full of diverse applications. The project provides a suite of integrated solutions that allow the developers to build Universal Apps. This approach enables applications to choose the appropriate generation methods based on their particular needs.
How Does Nervos Network Work?
The Nervos Network incorporates the security of a PoW blockchain along with the scalability of an off-chain scaling solution. This multi-layered approach uses the Nervos Network CBK (Common Knowledge Base). This public blockchain separates state and computation. The major components that play together and empower the Nervos Network to be capable of providing full interoperability across the market are listed below.
- Layer 1: The CKB operates as the layer-1 blockchain. It provides the common knowledge custody for the network. It ensures that the blockchain’s state is stored and defined. The CKB is an immutable distributed ledger.
- Layer 2: it is the computation layer. This off-chain solution processes most of the transactions and generates new states. The developers can program and execute their functions on this layer.
- Consensus: CKB PoW consensus is a variant of the SHA-256 system which was first introduced by Bitcoin. However, in Nervos Network, the PoW consensus mechanism is optimized for providing faster transaction times and ensuring decentralization. The consensus algorithm is capable of adjusting mining difficulty with respect to the network conditions. It increases the throughput when the network of nodes is well-connected and slows it down when the block orphan rate passes a certain threshold. Notably, this consensus system introduces a tri-node structure.
- Miners: In the Nervos Network, miners are responsible for the verification of the blocks using the PoW mechanism. In order to improve the hashing power, the network supports ASIC mining to improve hashing mining. The miners earn rewards in the form of CKB tokens for their efforts.
- Full Node: These nodes serve an important role in keeping the Nervos Network valid. The primary role of full nodes is to verify new blocks and relay transactions across the network. The miners then pick up these transactions are then picked up by miners who either approve or deny them. Full nodes are also awarded rewards in CKB tokens.
- Light Node: these nodes primarily operate on mobile devices. In Nervos, the network’s state is stored in a set of so-called “cells”. Light nodes however only hold a subset of cells because of the minimum amount of resources found on mobile devices. Light nodes make it possible for nearly anyone to participate in maintaining the Nervos network.
- CKB: it is the native token of the Nervos network and also its primary utility token. The token resides on the CKB (i.e. the layer-1) blockchain. Therefore, it has excellent scalability. CKB allows anyone to send value across the world in mere seconds. Moreover, the token is structured to hold store-of-value properties as well.
The Nervos Economic Model and Native Token CKByte
Nervos Network’s value is captured in its native token – the CKByte or $CKB. The $CKB can be used as a store-of-value, a value token behind smart contracts on the network, and even rent space on the Nervos Blockchain. In order to protect the store-of-value users from inflation from secondary issuance, the Nervos DAO plays an important role. Users are able to lock their $CKB in the DAO. This protects them from token dilution. Further, the users also receive a proportional share of inflation.
What is CKByte?
The CKByte is the token that powers the Nervos Network. The token vouches to have more functionality than what Bitcoin and ETH have to offer. The unique crypto-economic design makes it an ideal use case for store-of-value as well as capturing the total value of the network for increasing the security and aligning the interests of users, miners, developers, and the node operators.
How is it unique?
The $CKB token is regarded as unique by its developers because it has multiple functionalities. The $CKB is not just capable of storing value or just executing smart contracts. It is capable of doing both and even more. $CKB’s crypto-economic design is made to not only facilitate transactions but also for long-term value preservation which scales with network growth and value creation. $CKB is a powerful tool for the network, but strong stand-alone crypto as well.
What can it be used for?
$CKB stretches the limits of what the currently available cryptocurrency is able to do. $CKB has multiple uses. $CKB can be used as a medium of exchange, as well as a store-of-value. Furthermore, $CKB can also be used in executing the smart contracts or for use in dApps and also in renting out space on the blockchain.
What is Nervos DAO?
The Nervos DAO lets the users lock their currently unused CKBytes tokens. In return, they receive rewards from secondary issuance. This means that by depositing the CKBytes in the Nervos DAO, your holdings will never be diluted by secondary issuance. Even though at first it may seem slightly complicated, the Nervos DAO, alongside every feature of $CKB, is developed in a totally permissionless, decentralized, and trustless way.
How to purchase $CKB?
The best way to purchase the CKB token is to visit one of the following exchanges.
How to securely store CKB?
You can either use software or hardware wallets to securely store CKB. Also, CKB is available for purchase at several exchanges, where it can also be stored. However, it is always recommended to look into other options for added security. Some of the most secure wallets for storing CKB are as follows.
- Neuron: Neuron is the Nervos Network’s native wallet.
- imToken: is another easy and secure digital wallet trusted by millions.
- Ledger: it is one of the most popular hardware wallets offering support for storing CKB.
Godwoken – the EVM Compatible Layer
What is Godwoken?
Godwoken is an EVM compatible layer-2 built on top of the Nervos Layer-1 blockchain. It is an optimistic rollup ultimately inheriting security from layer-1. Godwoken provides instant transaction finality with low fees and a completely Ethereum compatible environment on Nervos.
Why choose Godwoken?
It is a powerful and secure inherently multi-chain blockchain ecosystem that offers low fees and faster transaction times. With Nervos, Ethereum developers can seamlessly port their dApps. This allows them to become part of the next-generation DeFi ecosystem easily.
How is Godwoken Different?
Godwoken is an inherently multi-chain solution utilizing advanced account abstraction that allows for flexible wallet support, or traditional user accounts, for an internet-like experience. Cross-chain assets such as ETH and ERC-20 tokens can be utilized on deployed dApps through Nervos’ Force Bridge.
Nervos Network Past Price Analysis
As of 03/02/2022, according to Price Prediction, the current price of Nervos Network is $0.014 and is currently ranked #134 in the market. The circulation supply of Nervos Network is 29.60B CKB with a market cap of $447,777,470. In the past 24 hours, the price has decreased by -3.42%.
Nervos Network is facing a hard time getting on board with other crypto coins. The CKB is down to almost -1.03% in the last 7 days. The coin is still showing risking framing segments for the past few days, the coin might have strong fundamentals but, we don’t think that it would a profitable asset in short term.
Last One Month Performance: Within the last one month, the price of CKB has decreased by -33.433%, eliminating a whopping average sum of $0.007 from its current value. This sudden down means that the coin is in a dip right now, meaning that it can be a good buy opportunity for quick investment.
Last 90 Days Performance: The 90 days price change is around -25.44% and the price circulated from a minimum average price of $0.019 to a maximum average price of $0.020 in the past 90 days.
Last 4 Months Performace: Nervos Network is down by -9.27% with the maximum average price of the coin being around $0.014 and the minimum average price of was around $0.012 in the past 4 months.
Nervos Network (CKB) Price Prediction/Forecast for 2022, 2023, 2024, 2025 and 2030
Below we provide a breakdown of the price prediction for FET token as provided by Price Prediction.
Nervos Network Price Prediction 2022: According to Price Prediction, in 2022 the price of Nervos Network is predicted to reach a minimum level of $0.021. The CKB price can reach a maximum level of $0.026 with an average trading price of $0.022.
Nervos Network Price Prediction 2023: The price of Nervos Network is predicted to reach a minimum level of $0.032 in 2023. The Nervos Network price can reach a maximum level of $0.037 with an average price of $0.033 throughout 2023.
Nervos Network Price prediction for 2024: As per the forecast price and technical analysis, In 2024 the price of Nervos Network is predicted to reach at a minimum level of $0.046. The CKB price can reach a maximum level of $0.055 with the average trading price of $0.047.
Nervos Network Price prediction for 2025: The price of 1 Nervos Network is expected to reach at a minimum level of $0.065 in 2025. The CKB price can reach a maximum level of $0.080 with the average price of $0.067 throughout 2025.
Nervos Network Price Prediction 2026: Nervos Network price is forecast to reach a lowest possible level of $0.095 in 2026. As per our findings, the CKB price could reach a maximum possible level of $0.11 with the average forecast price of $0.098.
Nervos Network Price Prediction 2027: In 2027, the price of Nervos Network is forecasted to be at around a minimum value of $0.14. The Nervos Network price value can reach a maximum of $0.17 with the average trading value of $0.14 in USD.
Nervos Network (CKB) Price Prediction 2028: The price of Nervos Network is predicted to reach at a minimum value of $0.20 in 2028. The Nervos Network price could reach a maximum value of $0.24 with the average trading price of $0.20 throughout 2028.
Nervos Network Price Prediction/Forecast 2029: In 2029, the price of Nervos Network is expected to reach at a minimum price value of $0.27. The CKB price can reach a maximum price value of $0.33 with the average value of $0.28.
Nervos Network (CKB) Price Prediction 2030: The price of Nervos Network is predicted to reach at a minimum value of $0.40 in 2030. The Nervos Network price could reach a maximum value of $0.47 with the average trading price of $0.41 throughout 2030.
Nervos Network Price Prediction 2031: Nervos Network price is forecast to reach a lowest possible level of $0.58 in 2031. As per our findings, the CKB price could reach a maximum possible level of $0.67 with the average forecast price of $0.59.
Is Nervos Network (CKB) a good investment?
According to different price predictors, Nervos Network’s value is expected to continue to expand, as shortage tends to encourage price rise. However, there is always some risk associated with any investment. Before investing one should conduct the maximum research possible.
How high can Nervos Network go?
The average price of Nervos Network (CKB) might go to $0.022 by the end of this year. If we estimate the five-year plan, it is estimated that the coin will easily reach the $0.098 mark.
Takeaways: The Nervos Network represents a major change in developer’s strategies. This project is not targeted to compete against other blockchains. Rather, it aims to exemplify the best characteristics of every network provides. As such, it’s a valuable addition to the market that is sure to see continued adoption moving forward.