What is Nervos?
Nervos is a developer’s dream come true. Nervos is a Layer 1 Blockchain that has Layer 2 built-in protocols in place for developers to create Dapps or tokens while remaining as secure as a PoW L1 Chain but also have the flexibility of an L2 protocol that enables the use of smart contracts.
First, we must discuss the three biggest problems in all of Crypto:
Scalability – A chain is useless if it only works for a very limited number of people and can never grow to the extent of mass adoption.
Sustainability – What good is the motor in a car if it only works for a year? Chains need to be able to handle the influx of new users, new tech, and of course, new ways to be circumvented by bad actors.
Interoperability – Too many fragmented ideas and too many barriers kept civilizations in the dark for thousands of years. In Crypto we now have over 100 L1 Blockchains and they have a very difficult time trying to interact with one another.
Some protocols or projects aim to satisfy one or two of these problems. Nervos has decided to tackle all three at the same time using a host of well-researched and well-thought-out protocols.
The Nervos Solutions
Nervos has decided to go with Proof-of-Work to secure its Blockchain. When all the dust settles and all the reports have been read, they felt that nothing beats PoW security running an optimized version of the Nakamoto consensus algorithm.
Economic sustainability will be achieved by a token called CKB. This CKB token will be representative of the cell capacity used as a store of value on the L1 blockchain.
CKB – Or Common Knowledge Base, is the foundational core of Nervos and it is split into 2 layers, L1 and L2. L2 is flexible enough to allow cross-chain communications between chains and the ability for developers to create Universal Apps.
All things are looking good for Nervos! Earlier this year, only last month, Nervos released its Ethereum Force Bridge. This was a major milestone for the project and a very good example of how other chains will operate in the future. Up next will be the Cardano Force Bridge and then eventually Bitcoin and a host of others.
ALso in October, Nervos released a ton of upgrades to the code, streamlining smart contracts and allowing more efficient use of its Virtual Machines. These VMs are what allow any developer to write and connect to any other chain in the future -0 so it’s important that they are as efficient as possible.
The Team currently sits at 60 Core Developers and a total Team of 86 people. The three founders are all former executives or were founders of other companies before Nervos. The Research and Engineering team, as well as the three co-founders, are all fairly young. It would not hurt them at all to add a few senior crypto professionals into the consulting department. That being said, they seem to be delivering at the moment.
For this model to work, there cannot be a cap on the CKB minting mechanism. That’s is always a tough pill for investors to swallow. The token does provide payment for three different services on the network. Cycles for computation power, Transaction Fees for power, security and verification and State Rent for use of the State Channels or storage on chain.
The Price Action
CKB got started right away when listed on Binance. After only 63 days, most of them being up days, CKB imprinted its ATH at $0.0444 after a gain of 816% from the Low.
Unfortunately, like so many others, CKB suffered an 82% loss that spanned over 111 Days.
However, the entire market has been healthy and some coins have been making some serious moves. CKB has been moving with the pack and has posted itself a 329% gain from the lows reached back in July.
CKB is currently trading in a lightly congested zone. Prior Support that was flipped to resistance and was the cause of the swing-fail that resulted in an 82% loss – that is the area we are trading at now.
The good news is that when CKB approached the zone, it did so with momentum, speed, and force – coupled with Volume. The result was a 2-Day/70% One-Two Punch.
Now CKB needs to hold the line near $0.026 and allow the trend to continue. If that is to happen, we still face some resistance at $0.034, $0.041, and the ATH at $0.0444.
Nervos brings to the table the Best pieces of Bitcoin (security, consensus, PoW) and the best pieces of Ethereum (Smart Contracts) and smashes the two together without losing too much in return and actually adding an insane amount of use, sustainability, and scalability all in one platform that allows Developers to write Universal Apps.
The option of writing Universal Apps no longer pigeon holes developers and no longer handcuffs them to a specific chain. Even if the throughput wasn’t unbelievable, this one reason alone makes Nervos stand out amongst the 26K Blockchain projects.
As of only a few days ago, Ethereum developers can make use of the Force Bridge as well as Godwoken – the EVM compatible layer – to port their projects over to Nervos from Ethereum. This would mark a pretty significant move within the ecosystem.