What is CKB token? Is Nervos Network (CKB) a good investment?

The presence of blockchain technology has brought many cryptocurrency projects with various missions and purposes in today’s technology revolution. Among them are Bitcoin, Ethereum, Solana, Polkadot, Cosmos… And today, invest286.com will introduce to everyone a cryptocurrency project that everyone may be interested in, which is Nervos Network. So, what is Nervos Network, what is CKB token, should you invest in CKB, then you should see the details right after this.

Contents

1 Nervos Network – What is CKB token, should you invest?

Nervos Network – What is CKB token, should you invest?

What is Nervos Network?

Nervos Network is a solution for the lack of scalability and interoperability issues faced by most Layer 1 blockchain networks. It is named after the body’s nervous system – its network shares a layered structure, with one layer acting as the consensus layer and smart supervisor, and another layer designed for high-performance transactions and privacy protection.

Nervos Network was established in 2018 to create a true peer-to-peer cryptocurrency economic network. As a multi-asset value storage blockchain ecosystem, it leverages a unique two-layer architecture to improve scalability and interoperability.

The Nervos Network is designed so that its Layer 1 is the common knowledge base layer, providing the ability to store common knowledge for the network. This is the foundation of the platform, providing a general-purpose proof-of-work (PoW) blockchain that acts as a consensus tool for applications running on the Nervos ecosystem.
On the other hand, the second layer is the computation layer, where the process of processing off-chain transactions takes place. This layer is also designed to create new states of the blockchain and can store several decentralized applications (DApps), as developers can use it to implement the functions of their DApps.

What is CKB token?

CKB token is the cryptocurrency used as fuel to operate all activities in the Nervos Network, such as paying transaction fees, rewards, executing smart contracts,…

**CKB stands for CKByte
With CKB, token holders are entitled to a portion of the total state storage of the network. For example, holding 1,000 CKB tokens allows the creation of a 1,000-byte cell – or multiple cells, all adding up to 1,000 bytes on the Nervos blockchain. CKB runs on a PoW blockchain, it is mined using an ASIC-neutral PoW function, designed to distribute tokens as evenly as possible to ensure the security of the network.

Besides being used to purchase storage space for cells on the base layer of Nervos CKB, the CKB token also brings flexibility to the entire ecosystem. The fact that CKB tokens are exchanged for cells (and vice versa) establishes an economic model where storage fees are applied for both space and time occupied.

Basic information about CKB coin:

Trading code: CKB
Blockchain: Nervos Network
Total supply: unlimited
Circulating supply: 44,949,240,028
Today’s CKB coin price: $ 0.013879

Who founded Nervos Network (CKB)?

The co-founders of Nervos Network include three key figures: Terry Tai, Kevin Wang, and Daniel Lv, among whom:

Terry Tai: currently the CEO of Nervos Network, graduated in Computer Science, with over 5 years of experience in the blockchain technology industry, previously Co-founder & Project Manager & Developer of Baoquan (a one-stop service platform for authenticating electronic data with experts in the chain, finance, law, etc.), Chief Architect of Zhiren, Product Director of Cryptape, co-founder of Teahour.FM…
Kevin Wang: has experience in the fields of IT, electronics, telecommunications, and networking. Previously a software engineer at IBM, consultant and software developer at Hashrocket, co-founder of Teahour.fm, co-founder of Launch School…
Daniel Lv: he graduated from Shanghai University of Science and Technology, former Senior Engineer, former CTO of imToken (the world’s most popular Ethereum wallet), former CTO of Yunbi, and co-founder of ruby-china.org and KOL.

What are the key features of CKB coin?

The Nervos network has an economic model designed to allow all participants to contribute to the success of the platform, while maximizing the utility of blockchain technology. Thanks to the CKB token, platform users, developers, and node operators can work towards a common goal by creating and storing states on the main CKB network.
Compared to existing blockchains, where state storage is a one-time transaction in which the state is indefinitely occupied, Nervos Network’s model encourages users to pay for network resources based on capacity and duration of occupancy. This model allows the platform to scale and grow organically.
Flexible multi-layer design: The layered design of the Nervos Network brings a lot of flexibility. The network’s permissioned and permissionless framework allows the platform to function as a global value storage network accessible for all types of blockchain services. Nervos provides an entirely new level of flexibility to the blockchain and cryptocurrency space, allowing developers to build global applications that can run on any blockchain network.
High level of security: While scalability and interoperability are essential to enhance the adoption of blockchain technology, security is why blockchain networks like Bitcoin maintain their leading status. Nervos Network is built on the PoW consensus protocol that has been tested and tried to keep decentralized applications and tokens built on its platform safe and secure. Furthermore, the Nervos Network has been audited by third parties and proven to be secure – even going further by organizing hackathon events with cash prizes for participants who find weaknesses in the project’s underlying protocol.
Nervos network’s Universal Passport: Nervos has built a set of tools they call the Universal Passport. This is the solution to create the next level of interoperability that will allow the creation of Global Apps – Applications that transcend individual blockchains to operate seamlessly across all chains in the ecosystem.
100% Ethereum compatible with EVM on CKB Solution. CKB consensus is an improved Nakamoto consensus based on Proof-of-Work, aiming to achieve openness, correctness, and high performance in distributed environments with network latency and Byzantine faults.
Current blockchains only charge a one-time transaction fee but allow states to be stored on all full nodes, occupying storage space indefinitely.

Price history of CKB token

Let’s review the price history of CKB coin over the past few months:

The starting price of CKB token was about 0.008954 USD on 20/11/2019 according to Coinmarketcap, however, after that, the price of CKB decreased gradually and ended the year 2019 at 0.006909 USD.

In 2020, the price of CKB fluctuated a lot, with moments when the price of CKB was only about 0.002918 USD, but also times when it rose to 0.009196 USD, ending 2020 at 0.003802 USD.

2021 was a booming year not only for the CKB token but also for most other cryptocurrency projects. Accordingly, in just the first 3 months of 2021, the price of CKB coin increased by nearly 1000% to 0.04176 USD. However, just 4 months later, the price of CKB decreased to only 0.008245 USD (a decrease of over 80%). This decrease also followed the general trend of the cryptocurrency market, and when the price of Bitcoin increased again, the price of CKB also increased, successively reaching the milestones of 0.02013 USD in September, 0.02199 USD in October, 0.03478 USD in November, and ending 2021 at 0.02225 USD with an increase of nearly 500%.

At the beginning of 2022, the price of CKB was still in a downward trend, although it sometimes increased with the price of Bitcoin, but the peak was lower than the previous peak, and at times the price of CKB was only 0.01011 USD.

The current price of CKB coin is: $ 0.013879

=> In the long term, it can be seen that the price of CKB coin has gradually increased, but the increase is due to the boom in Bitcoin price as well as the entire cryptocurrency market, whereas before that the price of CKB was not outstanding and mainly decreased lower than its starting price.

Should you invest in CKB token?

To know whether to invest in CKB coin or not, let’s review the advantages and disadvantages of this project:

What are the advantages of CKB token?

♥ Capable of executing smart contracts

♥ Flexible multi-layer design, allowing developers to build global applications that can run on any blockchain network.

♥ CKB can be used as a value store and for cross-continental payments like Bitcoin, but it can also be a value token behind smart contracts like Ethereum. According to the official website of this project, the CKB token has more uses than Ethereum or Bitcoin.

What are the disadvantages of CKB token?

♦ Unlimited supply, which will not help CKB increase in value due to scarcity like Bitcoin.
♦ Uses the POW consensus mechanism, which consumes a lot of energy and also pollutes the environment.

♦ Strong price volatility and high investment risk

♦ Must compete with numerous other layer-1 blockchain projects while the technology of Nervos Network is not really outstanding and the ecosystem of Nervos Network is still very small.

♦ Investing in CKB coin is an investment not recognized by law, so if your money faces any risk, it will not be protected.

=> Should you invest in CKB coin? The answer will depend on each person’s judgment. Although Nervos Network has been operating for over 4 years, the achievements of the project are still quite limited and are still in the process of building bridges to other blockchain platforms. So if you want to invest, you need to follow up-to-date information to see if the project has anything new to choose the right investment time.

Where to buy CKB coin, which exchange?

Where to buy CKB coin, token, which exchange?

Wallet for storing CKB token

SUMMARY:
♦ Nervos Network is an open-source layer-1 blockchain platform that brings together protocols to create a foundation for a public network similar to the global internet.
♦ CKB token is the fuel to operate the Nervos Network
♦ Nervos Network can be used to build Dapps and execute smart contracts.
♦ Although the value of CKB has gradually increased over time, it still carries high risk, and the price increase is mainly following the general market trend rather than Nervos Network significantly helping it increase in value.
♦ Currently, the CKB coin price is $ 0.013879, market cap $ 626.91 M, market cap ranking 157

See more related useful information:

Through this, you must have understood What Nervos Network – CKB token is, should you invest in CKB coin or not? If you have any opinions or judgments related to Nervos Network, you can leave a comment for everyone to discuss. Wish you make the right investment choice and succeed.