# L1 CKB Nervos Network By [moonduck15](https://paragraph.com/@moonduck15) · 2022-01-27 --- A cheat sheet to illustrate details on [Investors checklist for Blockchains](https://themoonduck-15.medium.com/investors-checklist-for-blockchain-47c14569c263) . Data or stats are not authoritative and picked from scans of tweets, discord , telegram reddit etc 2021 Q4 and some references are provided. In case of any misses do let me know and I will update. _These notes are more on under-the-hood engineering look. A separate article will cover the business development viewpoint_ _I use the trading ticker rather then name and for example for Axie Infinity blockchain game $AXS implies the coin or token and AXS implies the foundation/DAO/founders as appropriate_ **Status : DRAFT** * Basics * Price Action * Stats and Links * Highlight Pro and Con * Technology * Apps Ecosystem * Funds and Promotions * Readings Basics ------ [Nervos Network ($CKB)](https://www.coingecko.com/en/coins/nervos-network) was launched in 2018 by Cipher Wang Former  Product Director at the Blockchain Lab of the China Banknote Printing and Minting Corporation, Terry Tai, Kevin Wang and [others](https://www.nervos.org/about/team).Mainnet came in  Nov. 2019. It is a public blockchain that uses a different architectural design by separating its infrastructure into two layers: a single base layer Nervos CKB (Common Knowledge Base)  as Layer-1 and a high-performance application layer (Layer-2). Nervos developers are building a collection of protocols to provide the scalability and environment necessary to support applications. **Common Knowledge Base** $CKB  is a general-purpose, Proof-of-Work (PoW) blockchain that serves as the consensus engine for Nervos-based applications and application layers. This base layer also features a native utility token, the CKByte (CKB) for  miner incentivization . 200 tps with NC-max (Nakamoto Consensus) on POW L1 and ~1K with POA Godwoken layer 2 or POS Polyjuice EVM L2. ttf under 2 minutes Price Action ------------ 893% Return from 2021 low to high. 0.00378USD ( Jan 1) - 0.0222USD ( Dec 31) 487.34% returns in 2021 ![Snapshot 19 Jan 2022](https://storage.googleapis.com/papyrus_images/911e0b0feac0e510a98865a233d3fa57e4010d5bf6320aed322d81b45fad0abc.png) Snapshot 19 Jan 2022 Stats and Links --------------- **Community Stats** 16K+ Reddit 19K+ Telegram 83K Twitter **Links**  [Discord](https://discord.gg/AqGTUE9) [Github](https://github.com/nervosnetwork) [Nervos Talk Forum](https://talk.nervos.org/)   [Twitter](https://twitter.com/nervosnetwork) [Website](https://www.nervos.org/) [Whitepaper](https://github.com/nervosnetwork/rfcs/blob/master/rfcs/0002-ckb/0002-ckb.md) [Telegram](http://t.me/nervosnetwork) [Reddit](https://www.reddit.com/r/NervosNetwork/) ### Highlight Pro and Con * Modular POW for main chain nd POS for sub chains * EVM compatible * large scale bridges and links to other chains * Free NFT transfers features * Needs more apps and use cases * ### Technology The Nervos Common Knowledge Base ( $CKB ) is the layer 1, proof of work, public permission less blockchain protocol of the Nervos Network. It allows any crypto-asset to be stored with the security, immutability, and permission less nature of Bitcoin while enabling _smart contracts and layer 2 scaling_. The mining algorithm is [Eaglesong](https://medium.com/nervosnetwork/the-proof-of-work-function-of-nervos-ckb-3cc8364464d9), and they have [third party mining pools](https://docs-old.nervos.org/references/mining-resources) . Nervos opted to host a mining competition on its testnet, where the top participants received real financial rewards in Nervos’ native CKB token upon mainnet launch (Nov. 15, 2019). This method helped familiarize miners with the nuances of Nervos’ blockchain and mining client design while facilitating token distribution. Current payout was 6 $CKB per 100MH/Sec/day. [LINK](https://www.f2pool.com/). [CKB VM](https://medium.com/nervosnetwork/an-introduction-to-ckb-vm-9d95678a7757) is just an implementation of the [RISC-V](https://riscv.org/) Instruction Set Architecture(ISA) **Consensus** Lite Nodes initiate transactions which are cached and propagated in memory by full nodes and placed into blocks by miners and added to the chain using POW consensus. 4 subsequent blocks are used for TTF. ![https://www.nervos.org/blog/ckb-style-lego-pieces-polyjuice-on-godwoken](https://storage.googleapis.com/papyrus_images/6ca50d51293c2b34b87770a99c3003168bb0ffaf37ab1f8ba7999b778cd5c10b.png) https://www.nervos.org/blog/ckb-style-lego-pieces-polyjuice-on-godwoken L2 Chain Godwoken works by having a set of aggregator nodes collect specially designed layer 2 transactions, then pack them into a CKB transaction, which they submit to layer 1 CKB for acceptance. In 2021 Godwoken uses _Optimistic Rollup based design with A Proof-of-Authority_ and plans for A ZK Rollup based setup in future. There is an ETH compatible EVM  [Polyjuice](https://www.nervos.org/blog/understanding-nervoss-multi-chain-solutions) with facilities to handle state in different shards ( L2 chains) CKB  uses a hybrid of UTXO and account based model with [Cells](https://medium.com/nervosnetwork/https-medium-com-nervosnetwork-cell-model-7323fca57571) acting as UTXO but state maintained at account level. Blocks have cells as trace of transactions. A state change on CKB is represented by a transaction destroying some cells from previous transactions, and creating some new cells. The concept of state, is reflected via a set of UTXO ie 'live cells' in CKB. A transaction is atomic, it either gets accepted, or rejected. `As an abstract state verification model, the Cell model offers an internally unstructured storage space (data) and supports any state verification rule (type) and ownership verification rule (lock). We can simulate how the UTXO model works in the Cell model (as seen in SatoshiCoin), or build the Account model in it.` The code is kept in 'live cells'  (UTXO )   and referenced from the cell in a transaction. CKB charges a rent fee cost per byte used by smart code etc in CKbyte token. Nervos uses  [Muta toolkit](https://docs.muta.dev/) for creating a  L2 chain with [Overlord consensus](https://docs.muta.dev/docs/about/what-is-muta/) providing parallel consensus and execution and Rust coding. sUDT are are ERC20 type _user defined tokens_ and xUDT is an extension to support regulation compliance capabilities. It provides [features such as transfer whitelists and black lists](https://www.nervos.org/blog/xudts-the-next-stage-of-udts), emergency Halts and support for [Security Token Offerings ( STO)](https://www.cointelligence.com/content/security-token-offering-sto-how-to/) Interoperability with other L1 using bridge/routers and [ForceBridge](https://medium.com/nervosnetwork/nervos-launches-force-bridge-to-connect-ethereum-dapps-users-with-ckb-24450df468f4) with ETH and BSC operational and Cardano ($ADA) under works. ckETH wrapped? Forcebridge avoids wrapping tokens and enables each chain to issue equivalent value tokens ![https://www.nervos.org/blog/understanding-nervoss-multi-chain-solutions](https://storage.googleapis.com/papyrus_images/621f2617f57d28312169177bf3cee20e837c7f5d566433ebd535c28564375653.png) https://www.nervos.org/blog/understanding-nervoss-multi-chain-solutions ### App Ecosystem [Roadmap](https://www.nervos.org/about/roadmap) shows [YokaiSwap](https://testnet.yokaiswap.com/)  Mimblewimble for enterprise users to hide amount and vendors transactions.Light client support. Payment channels. NFT with [built in transfer fee](https://medium.com/nervosnetwork/nervos-for-nfts-how-nervos-is-positioned-to-change-the-nft-game-1a06bf9d43f5) enabling zero fee usage by collectors ![https://www.nervos.org/blog/nervos-network-a-year-in-review](https://storage.googleapis.com/papyrus_images/f57b43c4c9da211f84675471ba3864ae0852bd6e46a909a5df081d4a5b7f5c34.png) https://www.nervos.org/blog/nervos-network-a-year-in-review ### Sentiment **Funding** 2018 raised 30 Mill from 30 VC like Polychain, CMS, Dragonfly, Electric Capital, Multicoin, Huobi capital Nov 2019 $72 million [CoinList](https://messari.io/organization/coinlist)\-hosted token sale. Included investments from China Merchants Bank International (CMBI), [Polychain Capital](https://messari.io/organization/polychain-capital), [Blockchain Capital](https://messari.io/organization/blockchain-capital), Hashkey, [MultiCoin Capital](https://messari.io/organization/multicoin-capital), and [Distributed Global](https://messari.io/organization/distributed-global). **Promotions** [Godwoken Whitelisting program](https://www.nervos.org/godwoken) and other initiatives. [Ecosystem](https://www.nervos.org/about/ecosystem) with Mining pools etc. ### Readings [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=fubeSokngY8) [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=BuFmbJh6yRg) [SundaeSwap Liquidity](https://www.nervos.org/blog/nervos-and-sundaeswap-labs-partner) --- *Originally published on [moonduck15](https://paragraph.com/@moonduck15/l1-ckb-nervos-network)*