We’ve all been there; browsing through coinmarketcap.com and seeing all these relatively new altcoins that have exploded in the recent months or even weeks, and just wondered how much we could have made had we bought into those coins not too long ago. Hindsight is 20/20, as they say.
But what if I told you there’s a relatively unknown crypto with potentially a very bright future; a genuinely exciting coin with useful technology behind it? Meet Nervos Network. The Nervos Network is much more than a coin actually; it’s a decentralised ecosystem, and here’s why I think it will succeed in the long-term.
Basics behind Nervos Network
Nervos Network is both an L1 and an L2 solution. The Nervos blockchain, with it’s native token the CKB the Common Knowledge Base, is the L1 (Layer 1) solution. In simple terms, this is the main (open-source) blockchain which works through a proof-of-work (PoW) consensus, meaning it’s both decentralised and a highly secure network. This base layer serves as the foundation for higher level blockchains (i.e., the L2 solution) which focus on scalability and the ability for anyone (including you!) to program and run dApps (decentralised applications) and smart contracts. For example, DeAccount LTD has a Decentralised Account System running on Nervos L2, which you can read about here.
The CKB token
The Nervos blockchain’s (L1 layer) native token is the CKByte or CKB, meaning Common Knowledge Base. The fundamental idea behind this is that one CKB = 1 Byte of storage on the blockchain; that is, if you wish to store 1 Byte of data on the Nervos blockchain, you will need to lock up 1 CKB token.
This means that as we see more and more entities locking their CKB in as a means to connect the L1 base layer to their L2 solution for smart contracts, dApps, etc., the total number of CKB will reduce as a means of keep the total circulation supply of CKB stable.
The PoW algorithm also means that CKB can be earnt through mining, but every 4 years the block reward halves. This is very similar to the Bitcoin (BTC) blockchain.
Currently as of writing this article, the Nervos CKB token is $0.026 USD with a total market cap of $738M or $0.738B. For comparison, Bitcoin has a market cap of $1.1T USD or $1100B, ETH is at $507B and BNB is at $97B.
In other words, Nervos Network and CKB token has a huge potential not only in terms of total market cap for investors (let’s face it, that’s most of us), but also the technology behind it. In my humble opinion, it’s a matter of ‘when’ not ‘if’ as to whether the Nervos Network will truly take-off, and be worth more than the ‘just a few cents’ that it is today.