Nervos Network

What is Nervos Network?

The Nervos Network represents a public blockchain and a set of protocols designed to address the scalability challenges encountered by conventional networks such as Bitcoin and Ethereum. Operating as a layer-1 protocol, Nervos' blockchain employs Proof-of-Work (PoW) consensus and provides the infrastructure for creating smart contracts. In addition, the platform incorporates a range of layer-2 scaling mechanisms that enhance its capability to handle large-scale usage scenarios. The native token of the Nervos Network (known as CKByte or CKB) enables users and developers to secure storage space on the blockchain in proportion to their holdings.

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Recent Podcast Overview

Main points of the podcast:

• Nervous Network addresses scalability and flexibility challenges
• Proof of work favored for its proven decentralization over proof of stake
• Tokenomics of Nervous Network includes state rent, ensuring perpetual data persistence
• CK bytes serve as the currency for Nervous Network, with utility beyond transaction fees

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The Cell Model of Nervos Network

A Cell in Nervos represents a fundamental unit for storing individual data pieces. It can hold various forms of data, such as CKBytes, tokens, JavaScript code, or serialized data like JSON strings. Flexibility in data type choice is a key feature.

Each Cell features a Lock Script, a small program determining its authorized user. While typically defining a single owner, the Lock Script can facilitate complex actions like multi-signature ownership or conditional time-locking.

A Cell can also incorporate a Type Script for enforcing specific usage rules. This empowers developers to craft intricate smart contracts spanning diverse applications like tokens, CryptoKitties, and DeFi.

The Cell Model outlines how Nervos cells interact and update data. Similar to Bitcoin's UTXO model, the Cell Model takes inspiration from it. Cells are unchangeable once added to the blockchain. Updates involve consuming a cell, extracting data, and creating a new cell with modified information.

Each Cell can be consumed only once, transitioning from live to dead status. Transactions illustrate data changes, specifying live cells to consume and new cells with updated data to create. Network validation ensures adherence to developer-defined rules and fraud prevention.

Nervos Network Team Background

The Nervos Foundation, which has its main office in China, was responsible for creating the project. Researchers, engineers, and developers make up the core team, which was assembled in 2018.

Three people created the platform itself: Terry Tai, who developed the Yunbi cryptocurrency exchange and co-founded Teahour.fm; Daniel Lv, who co-founded ruby-china.org and served as the platform's chief technology officer (CTO) for both imToken and Yunbi; and Kevin Wang, an engineer who provided consulting services to IBM Silicon Valley Lab and co-founded the Launch School.

Nervos Network Project Development

Nervos CKB (Layer 1) employs a proof of work (PoW) model similar to Bitcoin's, ensuring uncompromising consensus. This updated consensus approach, named NC-Max in honor of Bitcoin's creator Nakamoto, reflects the network's commitment to security. Nervos Network unveiled its NC-Max consensus protocol at the prestigious Network and Distributed System Security (NDSS) Symposium in 2022, a prominent event among the "big four" security conferences. This achievement will solidify Nervos' standing as a prominent PoW research entity.

Nervos researchers have identified areas for enhancing the current consensus mechanism of Nervos CKB. These efforts include refining the difficulty adjustment mechanism (DAM). Nervos is actively collaborating with academic partners on a series of security analyses. On the network layer, Nervos has recognized a security-performance tradeoff, challenging the conventional belief that such tradeoffs are absent in non-NC-Max blockchain and blockDAG consensus protocols. Simultaneously, on the consensus layer, ongoing research explores the integration of artificial intelligence tools to assess security and uncover vulnerabilities in existing consensus protocols.

Nervos Network Price Analysis

As of October 11 2024 Nervos Network has a marketcap of $656M. This is {{percentagefromath}} from its all time high of $0.04370633. In terms of its tokenomics, there's a total supply of 46B with 98% currently outstanding. Keep in mind Nervos Network has a fully diluted value of $666M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.