Join Matt Quinn and Jordan Mack from the Nervos Foundation for an AMA Tuesday 10th at 7pm EST!
Hi all, as confirmed by the Crypto Reddit moderators and the moons burnt to prove it 🙂
We'd like to thank r/Cryptocurrency for giving us the opportunity to host this AMA on Tuesday 10th October 7pm onwards EST
From the Nervos Foundation, we'll have Matt Quinn (executive director) and Jordan Mack (head of developer relations) on hand to answer your questions.
As an introduction, Nervos Network is a multi-layered blockchain ecosystem. At its heart is CKB – which represents the Layer 1 blockchain and its native token.
When it comes to smart contract platforms, the L1 space is dominated by Ethereum. Alt-L1s emerged in an effort to outpace Ethereum on the scaling front. Many Layer-1 blockchains see high TPS as the key to mass adoption, but their relevance is now being called into question with ETH L2 scaling solutions.
Nervos from the outset took an altogether different philosophy and value proposition to other Alt-L1s. Here are some key points that summarize the whitepaper:
CKB prioritizes flexibility and greater account abstraction whereas others prioritize TPS.
CKB as a Layer 1 blockchain is extremely flexible and interoperable. It can permissionlessly adopt any cryptography, any protocol, any standard – past, present, or future – without requiring a hard fork.
To adopt any protocol, all that is needed is to upload the cryptographic primitives on-chain. Then, any developer can make use of them. This makes it possible for Nervos to respond to innovation or challenges in the industry the fastest whilst other chains take months or years to agree on changes.
Nervos has already adopted quantum-resistant cryptography and can adopt new standards whenever they are released (https://github.com/cryptape/quantum-resistant-lock-script)
Nervos was one of the first chains to adopt FIDO WebAuthn – the authentication technology behind Passkeys that is used in Apple and Google devices. As such, applications on Nervos CKB can implement these well-tested security standards instantly. You can test one such wallet for yourself: JoyID (https://app.joyid.dev)
Nervos can verify wallet signatures from any blockchain. This enables users to interact on Nervos as if they were on their own blockchain, without needing to install any new wallet or create a new seedphrase. This makes Nervos applications inherently multichain, already supporting Ethereum, BSC, Tron, Polygon, Doge, XRP, Solana. An application that utilizes this feature is DIDbased (https://d.id)
CKB prioritizes security, decentralization and state efficiency
CKB is secured by proof of work. It is fully open-source, global, permissionless, and censorship-resistant. Whereas Ethereum arrived at the “Layer 1 for Layer 2s” thesis after years of debating L1 scaling options, CKB was designed to focus on verification and delegate computation to other layers: L2 rollups, state channels, sidechains etc. Therefore, Nervos addresses the Blockchain Trilemma by optimizing L1 for security and decentralization to be the trust anchor for the network, enabling upper layers to focus on scaling.
A key centralizing problem facing blockchains is state bloat. If too much useless or unused data remains on chain, the burden of running full nodes becomes higher: On Ethereum, there is no incentive to remove such data. To combat this, state rent is levied indirectly through inflation against state occupiers to ensure that miners are compensated for the long-term maintenance of this data.
On CKB, running a full node is something any user can do, and it can be run on something as lightweight as a Raspberry Pi.
CKB tokenomics are aimed at value capture and sustainability
CKB has 2 issuance models, primary and secondary.
Primary: This is a hard-capped fixed issuance for block rewards that halves every 4 years, similar to Bitcoin.
Secondary: This is a fixed and ongoing issuance to compensate miners in perpetuity for securing the network (tail emission) as well as sheltering long-term holders from inflation. These holders can lock their CKB in the NervosDAO and receive yield proportional to secondary inflation, thereby effectively hardcapping supply.
As well as being issued as a block reward for miners, being the native token for smart contract functionality and governance, CKB has an important utility – it entitles the holder to occupy on-chain state.
1 CKB = 1 byte of on-chain state. Any smart contract, NFT, or arbitrary data that is stored fully on the chain requires CKB to be locked in cells that can then hold that data. These cells are an advanced form of UTXO known as the Cell Model. If the data does no need to persist, the owner can destroy the cell and receive their CKB deposit.
Such a tokenomic design creates sustainability by disincentivizing unnecessary state occupation. Additionally, it creates demand for CKB and allows it to reflect the value of the data that is stored on the blockchain. It is in essence a store of asset.
Nervos CKB was a project that started in 2018 and launched its main net in November 2019, they raised funds through venture capital. Since 2022 all vested funds have been unlocked.
For more information, check out the following resources:
- Nervos whitepaper https://github.com/nervosnetwork/rfcs/blob/master/rfcs/0001-positioning/0001-positioning.md
- Nervos in a nutshell https://medium.com/nervosnetwork/nervos-ckb-in-a-nutshell-7a4ac8f99e0e
- Nervos Common Knowledge Hub https://www.nervos.org/knowledge-base
With that out of the way, send us your questions!