Bitcoin and Ethereum are the king and queen of the cryptocurrency market. Both the coins have their own distinct offerings that place them at the position they are in the market but they have their own limitations. Bitcoin is the most trusted and secure channel for storing value on the blockchain; however, the network can only store its own token and was not designed for scalability. Ethereum is the market leader and pioneer of smart contracts and the dApp and DeFi technology but it suffers from network congestion and high gas fees due to infrastructural loopholes. Nervos Network derives its value from both Ethereum and Bitcoin. It is a hybrid of ETH and BTC with unique offerings of its own.
What is Nervos Network?
The Nervos Network is not a single blockchain, rather it is a collection of protocols which operate in tandem – each having their own value proposition. It is a complete open-source blockchain ecosystem. At its core is the flexible blockchain layer called the Common Knowledge Base or CKB. The CKB is an open-source and permissionless blockchain which employs the Proof-of-Work consensus mechanism. The Common Knowledge Base is a Layer-1 blockchain designed like the blockchain of Bitcoin. What sets the CKB apart is that it incorporates the security of Bitcoin but is designed to be compatible with Layer-2 scaling to tackle the problems of Bitcoin. The CKB also has smart contract compatibility like Ethereum.
The Nervos Network’s CKB is powered by the native token CKByte. CKByte represents the ownership of the blockchain layer. It is also utilized as a store of value and for the management of resources on Nervos Network.
CKB future outlook
Nervos Network is a unique ecosystem designed for security and decentralization. It aims to become the go-to platform for the development of decentralized applications. The DeFi has been one of the best performing sectors in the market and all DeFi projects are considered to have a good long-term investment potential.
The development team of Nervos Network is highly active and new updates of the network can result in a boost in value of the native token. Nervos Network recently announced a partnership with Covalent to expand the availability of data on the network. According to the estimates of Wallet Investor, CKB is expected to be operating at a price level of $0.02 in a year’s time. The upward trajectory of the cryptocurrency is expected to continue in the coming years and will reach $0.06 in five years’ time.
At the time of writing, CKB stands at a price level of $0.01.