Nervos Network is an open source public chain ecosystem and protocol collection.

Nervos Network aims to build the infrastructure of the crypto economy.

Scalability, sustainability and interoperability are the biggest challenges facing public chains today. Scalability solutions fall into two categories: on-chain capacity expansion and off-chain capacity expansion. On-chain capacity expansion may damage the long-term security model of the platform, increase the cost threshold of independent verification transactions, and increase the centralization tendency and generation gap of node operators. Sharding architectures can also present "composability problems." Downchain technology can balance decentralization, security and scalability. Effectively leverage the limited global consensus of the public chain by moving all business down the chain except for settling transactions and resolving disputes. Different Layer 2 protocols can be implemented based on application requirements, providing flexibility for developers and users. As more participants join the network, performance is not affected and all participants can share the security guarantees provided by Layer 1 consensus.

Nervos is a set of extensible and interoperable protocols, as well as an open blockchain Trustware platform for decentralized applications. Trustware is a new distributed computing model that goes beyond distributed ledgers and smart contracts to bring a universal expression of trust to meet the needs of today's real-world applications. Compared to other smart contract platforms, Nervos uses a "common knowledge base", a simpler state machine with uniform state transition semantics, excellent scalability, interoperability, and better consistency incentives for all participants in the network.

Nervos Common Knowledge Base (CKB) is designed to store all types of Common Knowledge, not just money. For example, it can store user-defined cryptographic assets, such as Fungible and non-fungible tokens, as well as valuable cryptographic proofs, to provide security for higher-level protocols, such as payment channels and Commit-chains. Consensus THE CKB consensus protocol is a variant of the Satoshi Consensus that improves its performance limits and resistance to selfish mining while maintaining its advantages. By identifying and eliminating NC's block propagation delay bottleneck, the CKB consensus protocol is able to support very short block intervals without sacrificing security. The shortened block interval not only increases throughput, but also reduces transaction confirmation delays. CKB's consensus agreement counts all valid blocks during difficulty adjustment, so selfish mining is no longer profitable. Nervos CKB uses the Cell model, a new structure that provides many of the benefits of the account model (as adopted by Ethereum) while retaining the asset ownership and validation-based properties of the UTXO model (as adopted by Bitcoin). The Cell model is a state-focused data model. Cells contain arbitrary data, which can be simple, such as the number and owner of tokens, or more complex, such as a code specifying validation conditions for token transfers. CKB's state machine executes scripts associated with the Cell to ensure the integrity of the state transition. Nervos CKB is a virtual machine (CKB-VM) designed based on risC-V instruction sets. Risc-v is an open source RISC instruction set architecture created in 2010 to facilitate the development of new types of hardware and software. Risc-v is a royalty-free, widely understood, and widely audited instruction set.

Nervos Cells Nervos CKB's native token is "Common Knowledge Byte", or CKByte for short. CKBytes authorizes token holders to occupy a portion of the blockchain's total state store. For example, by holding 1000 CKBytes, the user can create a unit with a capacity of 1000 bytes or multiple units with a combined capacity of 1000 bytes. In Nervos, network state is stored in a set of so-called cells. Changes in state (such as transactions or smart contract calls), such as "updates" of cell content, are done through cell destruction and cell creation, meaning that the contents of the original cell do not change directly. Each transaction actually destroys some cells and creates new ones. The newly created cell will have a new owner and store new data. The cellular system mimics bitcoin's UTXO model. When a unit is destroyed, it is marked as "destroyed", just as UTXO is marked as "used up", rather than being removed from the blockchain. Each cell can only be destroyed once, just as each UTXO can only be consumed once. When users release the state store, they receive the number of CKbytes equal to the size of the state (in bytes) occupied by their data. NervosDAO Nervos CKB contains a special smart contract called NervosDAO. Users who deposit their holdings in the DAO receive a portion of the network's secondary offering (the base offering is a block award to PoW miners). Using CKB to store data on CKB imposes an opportunity cost on the CKByte owner; They would not be able to deposit the occupied CKB into NervosDAO for a partial secondary release. CKB's economic model attempts to constrain state growth by using economic incentives. While CKBS are used to store state, they cannot be used to earn secondary release rewards through NervosDAO. This makes the secondary issue a "state lease" of state storage occupancy. This economic model charges state storage fees proportional to the amount of space and time occupied, which is very different from the "pay once, occupy forever" model used by chains such as Ethereum. Miners receive block awards and compensation for transaction fees. For block rewards, when a miner mines a block, they receive the entire base release reward for that block and a portion of the secondary release. This section is based on national occupations. Therefore, if half of all native tokens are used to store state, miners will receive half of the block's secondary issue reward. When Nervos's mining incentives finally end, the miners will still receive a "status rent" income unrelated to the deal.

Nervos Network CKB consensus is based on proof of Work (PoW) and Satoshi consensus. CKB's PoW algorithm, NC-Max, can adjust mining difficulty according to network conditions, increase throughput when nodes are well connected, and slow throughput when block orphan rate exceeds a certain threshold.

Layered design Nervos is a layered network consisting of a basic common computing and consensus layer and a series of application layers. The first layer is Nervos' CKB main network, which has proof-of-work (PoW) mining to ensure security. It works in conjunction with layer 2 protocols. Nervos CKB stores network states (account balances and application activity) in cells, while Nervos's Layer 2 protocol processes transactions and generates new states. Nervos CKB also provides stateful Turing-complete virtual machines (VMS) to support and process applications built using smart contracts. The CKB VM uses the cell model (UTXO billing model based on Bitcoin) to store and track state changes. This unit model facilitates parallel processing of transactions and allows integration of light clients. Nervos layer 2 protocol uses the security provided by the base layer, but it can execute transactions faster and cheaper than Nervos CKB. They can also be used as application-specific protocols with a set of features that cater to specific use cases, such as privacy or finance.

1. The native asset of layer 1 blockchain is the store of value. 2. Pass the extension responsibility to the second layer, because the first layer chain should be open and accessible. Designing extensibility at the base level leads to compromises in both decentralization and security. Instead, Tier 1 should complement rather than compete with tier 2 solutions. 3. Proof of Work (PoW) as a witch resistance method for layer 1 blockchain. 4. Layer 1 blockchain provides a common programming model for interaction protocols (composability) and for facilitating communication between different layers 2 (interoperability). 5. State storage has a clear and fine-grained ownership model to avoid the "tragedy of the Commons" problem. Whatever the trading needs, state occupation must have ongoing costs to provide a consistent long-term return for miners.

The biggest innovation of Nervos lies in the layered design of Layer1 and Layer2. The first-layer network is the basic network, and the POW mechanism similar to bitcoin is adopted to motivate miners to dig and maintain the network. Meanwhile, the second-layer network built has launched a complete DAPP development kit and component tools. In the economic model, CKB is both the storage resource of layer 1 network and the pledge token of layer 2 application. In addition, the Nervos team has a luxurious background. Architect Xie Hanjian is the co-founder and CEO of Mixiapu Technology, former member of the core Ethereum research team, and other team members include former imToken co-founder and CTO Lu Guoning, cryptographer Zhang Ren, and members of spark Mine Pool. In July 2018, sequoia Wanxiang led the investment of 28 million DOLLARS, in October 2019, the public offering of 67.2 million dollars, in November 2019, the main network online.

At present, the value of CKB token is still in the breaking state, and the degree of value capture is small, but the value of NervosDAO locked position on the platform continues to rise. If the network-based extensibility application can develop, investors may gain long-term returns.