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What is CKB (Nervos CKB)?

What is CKB (Nervos CKB)?

What is CKB and how did it evolve

Developed by NervosNetwork, CKB (Nervos CKB) is a cryptocurrency that can be used as a secure store of value, like Bitcoin. The token was issued on October 16, 2019, at $0.01, with a supply of 33,600,000,000 CKB. It can also be a value token behind smart contracts, like ETH. With CKBytes, you can store, execute, and even rent space on the Nervos Blockchain. The CKB consensus protocol NC-Max has three major innovations based on Bitcoin’s Nakamoto Consensus.

  1. Two-step transaction confirmation to reduce orphan rate;
  2. Dynamic block interval and block reward to best utilize bandwidth;
  3. Considering all blocks during the difficulty adjustment period to defend against selfish mining.

What is Nervos

Nervos is not just a single blockchain. It is also an interoperable protocol/network and a layered architecture designed to meet decentralized economic needs. Additionally, Nervos is also the basic layer of the Nervos network, a public permissionless blockchain for “asset storage” that focuses on preservation. The Nervos Network is an open-source public blockchain ecosystem that includes a set of mutually compatible layered protocols with blockchain technology as the core to solve the dilemma of blockchain scalability. Nervos CKB is the underlying public chain in the Nervos Network based on the PoW consensus mechanism. It allows for security, stability, and permissionlessness for any crypto asset while supporting smart contracts, Layer 2 scaling solutions, and a store of value crypto-economic design that allows native tokens, CKBytes, to capture the value of the entire network. Nervos CKB aims to be a common knowledge base and to serve as the public state layer of the entire Nervos network, as well as the state provider and the trust engine for applications built on upper-level layers. Furthermore, Nervos CKB also comes with plenty of technical features. Apart from voting and governance, the Nervos DAO (a smart contract) has also significantly lowered the user threshold. Regarding Nervos’ layered structure for scalability, local consensus focuses on security, whereas Layer 2 centers on performance. More specifically, Layer 2 runs local consensus, while Layer 1 only provides the most basic global consensus and supports off-chain computation and validation. Through off-chain computation, Nervos’ state improves the TPS of Ethereum.

How CKByte (CKB) is used

1. State storage on the network

CKB represents cell capacity in bytes, and they give owners the ability to occupy a piece of the blockchain’s overall global state. For example, if a user owns 1,000 CKB, he/she can create a cell with 1,000 bytes incapacity, or multiple cells that add up to 1,000 bytes incapacity. He/she can then use the 1,000 bytes to store assets, application state, or other types of common knowledge.

2. Miner compensation

Miners are compensated with both block rewards and transaction fees in the form of CKB tokens.

3. Staking rewards

CKB holders can deposit and lock their native tokens into a special contract called the NervosDAO to earn staking rewards.

How to get CKB

Nervos Network (CKB) is available on many leading exchanges, including Binance, Huobi Global, BKEX, OKEx, etc. In particular, Binance is most suited for users in Australia, Canada, Singapore, the United Kingdom, and most regions around the world.