Bitcoin (BTC) was the first open-source public blockchain created for peer-to-peer payment using cryptography technology, thereby creating “  cryptocurrencies  ”. Later, Ethereum extended the use cases with the introduction of smart contracts to create a platform for hosting decentralized applications (dApps). The boom in the number of users and the number of applications emerging on these networks proves a real need, a change and a growing concept being described as “  the future crypto-economy  ”. Today it is the turn of Nervos Network to put forward.

However, these blockchains today suffer from many issues regarding network scalability and scaling. Transaction processing capabilities remain very limited in the face of growing demand for this technology. Bitcoin (BTC) was the first player to work on an off-chain solution to address the need for improved network performance via the Lightning Network. It took a few years of work to be able to set up this solution which today still suffers from shortcomings in the underlying Bitcoin (BTC) protocol. Other technical developments such as ”  Sharding ” or partitioning in French which aims to divide the tasks to be carried out by the nodes in the treatment of a transaction has been implemented. On the Ethereum (ETH) side, its compute-oriented business model does not scale well with off-chain scaling. Soon to be governed by proof of stake, the Ethereum (ETH) blockchain is expected to improve its capabilities and performance.

Nervos CKB offers a permissionless public blockchain designed for a cryptocurrency network with multiple layers.

  1. The Nervos Network project teams
  2. The values ​​of Nervos Network
  3. What is Nervos Network?
  4. The Nervos Network
  5. Conclusion

The Nervos Network project teams

The founders of Nervos Network want a better future and help build interoperable and fully decentralized business networks.

Terry Tai, the first co-founder of the project has significant experience in the creation and development of distributed infrastructures. He is accompanied by Kevin Wang and Daniel Lv the other two co-founders of the Nervos project of Chinese origin. Terry and Kevin created the Teahour.FM project, a tech podcast for developers and hackers in China. Kevin Wang, in charge of the project’s tokenomics , worked for ten years for IBM as a software engineer. Daniel, the community manager has had many successful experiences in the blockchain field in recent years. He is the creator of ”  imToken  “, the first and largest Ethereum wallet in China with over 2 million users worldwide.

The Nervos project teams

The Nervos project teams

The values ​​of Nervos Network

Nervos Network was born in 2018 with the main objective of creating an adaptable network. Indeed, for ten years the birth of Bitcoin has opened the door to the development and use of distributed systems. Since then, many barriers to adoption, both regulatory and technical, have divided the communities.

The teams wish to put forward an ideal functioning based on mutual aid rather than dictating the rules from above. This is the opportunity to work in a community way to develop the Nervos network. They are committed to championing open-source patterns in the design of code and their communities. The project is moving towards real decentralized and flexible innovation with open collaboration as the main lever.

Today, the Nervos network represents a total team of 86 people including 60 developers as well as a presence in more than 14 countries around the world.

Situation of the Nervos network around the world
Situation of the Nervos network around the world

What is Nervos Network?

The Nervos Network blockchain consists of several layers. The first layer (layer 1) serves as a trust base and intelligent repository. The second layer (layer 2) generates high-performance transactions and ensures confidentiality management. The Nervos framework is an open-source public blockchain that implements a common knowledge base. An architecture of which the CKB token is an integral part for (Common Knowledge Base), it is quite simply a common knowledge base. CKB represents the store of value of the network.

The entire network provides secure, confidential and public services for the entire community. The network offers a new paradigm called ”  cellular model  ” for decentralized application making development more flexible, scalable and accessible to businesses or organizations.

The Nervos Network

1. Network architecture

The network’s two-layer architecture allows the state of the blockchain to be separated from the computation needed to process transactions. This modeling brings flexibility in the interoperability of ecosystems. A blockchain wishing to use the second generation layer may very well use a different consensus algorithm. CKB, the first layer, on the other hand, manages the consensus and security of the entire Nervos network.

Different possible options for implementing solutions for customers:

  • Local generators: These generators run directly on the client’s devices. Developers can implement the solution in any programming language.
  • Web Services: Users can generate new reports through today’s traditional web services that can work with CKB. For example, a game company can issue assets on CKB that will be used inside the game. The game will issue data that can then be verified and stored on the Nervos blockchain.
  • Status channels: Multiple users can use peer-to-peer communication to generate new statuses.
  • Generation chains: It can be a public or private blockchain that generates new states and stores them in the CKB infrastructure. During each generation the nodes reach a consensus with a smaller scope which improves performance as well as confidentiality.
Whitepaper Github Nervos Network
Credit: Github – Nervos Network

2. The first CKB layer consists of several elements

Consensus based on proof of work (PoW – Proof-of-Work)

Proof of work helps provide a censorship-resistant public service. The combination with the CKB virtual machine along with the Cell model creates a complete stateful Turing model for developers.

The CKB consensus set up by Nervos Network is a variant of proof of work (PoW) initiated by Satoshi Nakamoto, the famous creator of Bitcoin. Each node can freely decide to join the network or not, by participating either in the exploitation of the new blocks, or in the verification of these.

CKB uses an ASIC-independent proof-of-work feature with the aim of improving token distribution to increase the level of security. This function is based on three fundamental values ​​to be respected for the network to operate correctly:

  • Eventual Consistency: Ensures that each node can have an identical state of the blockchain
  • The principle of availability guarantees that the network can respond favorably to user requests within a reasonable time.
  • Equity provides a fair return to all nodes in the system

RISC-V instruction set

CKB VM is a virtual machine based on RISC-V instruction set to run and lock scripts. By supporting syscall, scripts can read metadata like current transaction or general blockchain information for example. This virtual machine is crypto-agnostic, which means that all app developers can use any cryptography. Be it Schnorr signatures, BLS signatures or zkSNARK/zkSTARK. This ensures the security of user assets including in the post-quantum era.

Blockchain and common knowledge base
Nervos Network

CKB programming model

Nervos Network’s CKB programming model consists of three actions including generating, verifying, and storing state. State generation runs off-chain, verification will be done by the CKB virtual machine while storage is done through the Cell model. Cells represent user-owned assets that follow application logic dictated by scripts. It is the CKB virtual machine that executes these scripts and verifies the evidence included in the input data. It ensures user authorizations as well as validation of the state transition for the applications.

Peer-to-peer network

The peer-to-peer network maintains the secure and optimal mode of communication between the different types of nodes. Within the Nervos infrastructure there are 3 types of nodes:

  • Mining nodes: They participate in the CKB consensus by collecting and aggregating transactions into blocks. This allows new blocks to be created when they find proof of work.
  • Full nodes: They verify new blocks and transactions.
  • Lightweight nodes: They trust full nodes, they only use subsets of cells that they need to function. These nodes are designed to work on mobile devices.

Economic model

The economic model makes it possible to retain common knowledge and data over the long term. It ensures the security as well as the decentralization of the network. Today the price of a CKB coin is 0.00857 usd per unit. The project has a capitalization of 265 million dollars which allows the coins in circulation to be exchanged between users.

The native corner of the ecosystem, CKB for ”  Common Knowledge Byte  ” or ”  CK Byte  ” represents the currency of the entire system thanks to the representation of the capacity of cells in bytes. It offers and gives owners the ability to occupy part of the global state of the blockchain. For example, if a user makes a purchase of 1000 CKB then he can create one or more cells totaling 1000 bytes of capacity. Thanks to this space, the participant will be able to store his assets, the state of the application or any other type of knowledge.

There are two types of CKB token issuance:

  • Base Issuance: A finite total supply with an issuance schedule similar to that of Bitcoin (BTC) and with issuance halving every 4 years. All tokens issued in this category are inducements to protect the network for all miners.
  • Secondary issue: The latter makes it possible to receive annuities linked to the state of the system within a given time. After the end of the basic broadcast, only the secondary broadcast will remain. Since native tokens represent the right to expand the global state, through this economic model, the project limits growth. Since state storage is limited it becomes a scarce resource such as bandwidth on Bitcoin (BTC), thus coins facilitate exchange and can be valued in the market.


The CKB project envisions a crypto-economy based on two layers, including CKB the base layer. It provides trust within the decentralized environment as well as upper layer security for the community. Now it is a common knowledge platform where state functionality is verified through global consensus and improves exchanges between all participants. Thanks to the CKB blockchain, users as well as developers can define, store, issue and transfer crypto-assets. In addition, for the crypto-economy, the Nervos network allows the creation of digital identities.

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SAKHRI Mohamed

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