An A-B-C Explanation of the Nervos Network- After Reading this, you Must Hop In!
The Nervos Network has been around since 2018, working to provide a universal ecosystem where different networks can enjoy unhinged interaction and interoperability. As the name implies, the Nervos Network is designed to become the nervous system of the blockchain, but many people still do not know enough about the network, and it’s taken the CKB token.
However, a few months ago, Nacho of the Nervos Africa team had a chat with Binance Nigeria, where he gave some remarkable insights about the Nervos project, and I’m here to share the scoop with you.
The Challenge of Unlimited Supply, and how CBK Plans to Stay Bullish and Valuable
Naturally, the price of any item that has an unlimited supply will be lower than items with a limited supply. This is because scarcity drives prices upwards. It’s a basic economic principle, but it is not the case with the CKB token despite its unlimited supply. This is because CKB is designed with an issuance schedule that helps prevent devaluation, thereby protecting its long-term holders.
Let me explain how this works
•CKB is currently undergoing a primary issuance stage—just like Bitcoin—which will end in due time.
• At the end of the primary issuance stage, miners will still be able to mine and get paid via secondary issuance.
So what’s the difference? And how will they get paid during the secondary issuance?
• Payment in the secondary issuance is made by making users pay for a space to store data on the CBK blockchain. This means that for users to store data on the CBK blockchain, they have to pay for their own space. It will cost 1CKB to buy 1byte of space on the CKB blockchain. Hence, the more space each user needs, the more CKB they have to buy. This also implies that as more users adopt the CKB space, increased demand will increase the value of CKB.
• Users can also place their CBK tokens in the Nervos DAO to protect them from any inflationary effects.
Why Should You Choose Nervos Over Other Cross-chain Projects?
While there are many other cross-chain solutions out there, most of them are limited in functionality and do not fully support interoperability. Those other solutions allow developers to build apps with their tools and interoperate with other apps within their networks. But they neglect the other large chunk of the blockchain ecosystem that wasn’t built inside their network, isolating and preventing them from benefiting from their offerings.
Now, this is where Nervos comes in! Nervos aims to provide a universal network—just like the internet— that’ll interconnect all universal and cross-chain applications such that users can interact effectively within the Nervos blockchain and other blockchains globally.
Apart from creating a solution where developers can build apps on the Nervos blockchain, the goal is to also allow them to port the apps they already built elsewhere, into the Nervos ecosystem. From there, they can interact and interoperate seamlessly with other apps and data within and outside the system.
The Nervos Strategy of Achieving this plan
To achieve its pipedream, the Nervos network has introduced the “Universal Passport Force Bridge.” The force bridge is a chain link that connects Etherum to Nervos. Unlike other etherum bridges that require users to complete several steps before they can move their assets around, the Universal Passport Force Bridge only needs your ERC-20 contract address. Just paste it, and voila! The job is done.
The bridge also allows Ethereum holders to buy CKB directly using their ETH instead of going through the tedious task of locking their assets before placing an order.
This force bridge will also incorporate other crypto assets in the nearest future, and within a bit of time, Nervos will reach the ultimate goal of universal interoperability of all crypto assets via the Nervos network.
Recently also, the IOHK and Nervos teams collaborated to build a unifying bridge between Nervos and Cardano. At the completion of this bridge, users on both blockchains will be able to transact assets between both blockchains. Apart from that, this bridge will also enable Nervos users to create tokens using the Cardano native asset standard, and port same into the Nervos blockchain. This bridge will ultimately enable enhanced interoperability between both blockchains, and create more possibilities for both Cardano and Nervos users.
Sustainability and Adoption Plan
The Nervos team is doing a lot of work to increase the adoption of CKB and the Nervos network. They have launched a 30 million dollars ecosystem fund to accelerate this project. Also, over 1.5 million grans have been awarded to developers to strengthen the works on development and operability.
There’s also the CKLabs which was launched for the massive building of apps on Nervos. On the other hand, local organizers are working hard at the grassroots level, canvassing for adoption, educating people on what the future holds, and igniting enthusiasm.
The truth is, the future is bright, and within a few years, Nervos Network will achieve its ultimate goal of becoming the nervous system of the crypto world. This is your best opportunity to hop on the train. Don’t miss it!
Find out more on the Nervos website or join their Telegram Channel.