Nervos
The Nervos Network, also known as the Common Knowledge Base, serves as the foundational layer of the Nervos ecosystem. It ensures trust for all higher layers within the system. The blockchain is structured to prioritize decentralization, offering minimalism, flexibility, and security. Its main purpose is to store various data and assets securely. Kevin Wang, Jan Xie, Terry Tai, Daniel Lv, and Cipher Wang are the co-founders of Nervos. [1]
Overview
The Nervos blockchain, or Common Knowledge Base, is the foundational layer of the Nervos ecosystem, prioritizing decentralization and security while facilitating data and asset storage. Its multi-layer architecture addresses trade-offs inherent in decentralized systems, with Layer 1 emphasizing security and Layer 2 focusing on scalability for rapid transactions. This architecture enables programmability in familiar languages like Javascript and Rust while executing code within CKB-VM, a high-performance virtual machine. Nervos utilizes a Proof of Work (PoW) based consensus algorithm, NC-MAX, to enhance transactions per second and confirmation time without compromising security. [1]
Technology
Cell Model
The Cell Model, inspired by Bitcoin's UTXO model, defines the behavior of individual Cells within Nervos and outlines the process for updating their data. In Nervos CKB, a Cell represents the smallest and fundamental unit for storing states. Inherited from Bitcoin's architecture, Nervos CKB implements the Cell Model as a generalized UTXO model for state storage, maintaining simplicity and consistency. In this model, all states are stored in immutable Cells, with computation occurring off-chain and nodes handling verification. Updating data within a Cell involves Consumption, wherein the existing Cell is consumed, its data extracted and updated, and a new Cell created with the updated data subsequently added on-chain. [2]
Cells can only be consumed once, transitioning from Live to Dead Cells after consumption, rendering them unusable. Transactions in Nervos reflect cell state changes, where groups of Live Cells are consumed and new Cells are created. Network validation of transactions involves executing associated Lock Scripts and Type Scripts, ensuring compliance with developer-defined rules, and preventing fraudulent activities. [2]
In Nervos CKB's cell model, smart contract execution separates computation and validation stages, with computation occurring off-chain and resulting data validated on-chain by full nodes. This parallel execution allows transactions to run independently in their own virtual machines, offering significant scaling improvements, particularly on modern computers with multiple CPU cores. Transactions in the Cell Model are highly flexible, enabling multiple smart contract operations to be batched into a single transaction, thereby reducing overhead and processing fees. [2]
First-Class Assets
In the Cell Model, all digital assets like CKBytes, tokens, and collectibles are considered first-class, exclusively owned by their respective owners, not by smart contracts. While assets must comply with smart contract rules during transactions, their ownership remains with the user, ensuring only the owner can utilize them, regardless of smart contract specifications. This ownership structure protects assets from contract exploits, as attackers cannot access them since they are under the user's control. Additionally, this structure entails responsibility for asset upkeep, with owners subject to a small recurring upkeep fee, known as state rent, due to the assets' occupancy on Nervos. [2]
CKB-VM
Nervos introduces CKB-VM, a virtual machine powered by the RISC-V instruction set, enhancing smart contract execution on the blockchain with Turing-complete programmability in a secure and high-performance environment. RISC-V is the foundation for processor design, offering a mature and modular architecture ideal for blockchain development. With CKB-VM, developers can seamlessly integrate cryptographic primitives into smart contracts, fostering smoother development experiences and accelerating the adoption of advanced technologies like cross-chain interaction and scaling innovations. Any programming language targeting RISC-V can be used for development on Nervos, enabling developers to utilize preferred tools and languages for efficient and secure smart contract deployment, supported by native SDKs in mainstream languages such as JavaScript, Rust, Go, Java, and Ruby. [3]
CKByte (CKB)
The native token of Nervos, CKByte (CKB), represents data storage on the network, with one CKByte equaling one byte of storage. CKB is also used for transaction and computation fees. To store 100 bytes of data on Nervos, one must possess 100 CKBytes, which remain locked while the data is stored. If data is deleted, the corresponding CKBytes become available for other uses. Additionally, CKBytes can be deposited in the Nervos DAO, accruing interest through a staking mechanism. [1]
State Rent
Miners play a crucial role in ensuring data validity and preservation on the network, with cycles and transaction fees ensuring proper validation. However, once fees are settled, miners lack ongoing incentives for data preservation. To address this, State Rent continuously compensates miners for data preservation. Users storing data on Nervos incur a small State Rent fee based on the occupied space, with targeted inflation used to offset upfront fees, enhancing user convenience. During storage, a portion of locked CKBytes cannot earn interest, gradually depreciating in value due to inflation, primarily impacting users storing data on Nervos. Funding for State Rent comes from Secondary Issuance, where users not occupying network space can gain interest by locking their CKBytes in Nervos DAO. [4]
Base Issuance
CKB's primary token issuance is hard-capped at 33.6 billion tokens, following a schedule similar to Bitcoin's issuance. Every four years, CKB's issuance halves until all tokens are mined. Over the initial four years, 16.8 billion CKB will be mined, with an initial yearly issuance rate of 4.2 billion. After the first halving cycle, the rate decreased to 2.1 billion CKB per year and halved until all tokens were mined. These tokens were awarded to CKB miners as a fixed reward per block, incentivizing the provision of computer resources for transaction processing and network security. As the Nervos network expands and CKB tokens gain value, the reward rate can decrease without compromising security. This issuance model ensures fair token distribution during the network's bootstrapping phase, fostering long-term economic decentralization. [5]
Secondary Issuance
Nervos employs a novel tokenomics approach, incorporating secondary issuance to collect state rent and ensure perpetual compensation for network security provided by miners, irrespective of historical transaction volume. With an annual emission of 1.344 billion CKB, secondary issuance is split among miners, Nervos DAO depositors, and the Nervos treasury based on the current utilization of circulating CKB tokens. While the secondary issuance primarily targets state occupiers, allowing CKB to serve both as a deflationary token for long-term holders and an inflationary token for blockchain users, its implementation, particularly regarding treasury funds, remains subject to community-initiated hard forks. [5]
This two-tiered emissions model ensures the Nervos Network's long-term sustainability by delinking miner compensation from transaction fees and aligning it with blockchain utilization as a preservation or store-of-value platform. This fosters an incentive structure beneficial to all network participants, including users, miners, developers, and token holders. Such alignment distinguishes Nervos from other Layer 1 platforms in the market. [5]
Nervos DAO
CKBytes holders can earn interest by locking tokens in Nervos DAO, akin to staking. Interest accrues proportionally to Secondary Issuance to counterbalance long-term inflationary effects, thereby preserving value. Users with CKBytes locked due to occupying space in Nervos are ineligible for placement in Nervos DAO; however, once their space-occupying Cells are consumed and CKBytes released, they can be placed in Nervos DAO. This mechanism incentivizes the removal of unnecessary data, promoting the long-term manageability of the blockchain. [4]
Partnerships
Polychain Capital
On October 10th, 2019, Nervos announced a strategic partnership with Polychain Capital. Polychain actively participated in the Nervos ecosystem, aiding community building and promoting adoption and awareness, particularly in the US and the Western hemisphere. Additionally, Polychain intended to invest 5.7 million USD in the upcoming CKByte public sale, which was held on CoinList on October 16, 2019. [6]
China Merchants Bank International
On October 5th, 2019, Nervos announced a partnership with China Merchants Bank International (CMBI) to jointly develop decentralized financial services applications. Some of these applications were intended to serve the bank’s retail customers. [7]
PeckShield
On July 31st, 2019, Nervos announced that security auditor PeckShield would conduct a security audit on the Nervos testnet to prepare for the mainnet launch later that year. Nervos planned to collaborate with PeckShield on various aspects of digital assets and blockchain security, including code auditing, defense deployment, and emergency response. [8]
imToken
On July 30th, 2019, Nervos announced a strategic partnership with digital asset management platform imToken. imToken became a core wallet partner, providing Nervos CKByte holders with robust token management and first-rate wallet services. Both Nervos and imToken shared a commitment to developing an alternative financial ecosystem, and this partnership marked a significant step toward building a more inclusive economy. [9]
BitPie Wallet
On July 9th, 2019, Nervos announced a strategic partnership with BitPie, a multi-chain wallet. BitPie committed to supporting CKByte tokens upon the Mainnet launch in Q4. This partnership aimed to provide CKByte token holders with top-notch wallet services, leveraging Bitpie’s extensive experience in safely managing billions of dollars worth of crypto assets. [10]
Huobi
On July 4th, 2019, Nervos announced a partnership with Huobi to develop a decentralized platform for financial institutions. This platform was intended to enable these institutions to deploy their own blockchains, stablecoins, and other DeFi services, aligning seamlessly with Nervos Network's vision. [11]
Investors
On July 18th, 2018, Nervos raised $28M in strategic investment funds from key partners and investors, including Polychain Capital, Sequoia China, Wanxiang Blockchain, FBG Capital, Blockchain Capital, Dekrypt Capital, Breyer Capital, 1confirmation, Multicoin Capital, Matrix Partners China, Kindred Ventures, 1kx, zk Capital and more. [12]