CKB

1. Project introduction

Nervos Network is a network protocol initiated a by the Nervos Foundation. Nervos Network includes a set of mutually compatible hierarchical protocols with blockchain technology as the core. In Nervos Network , Layer 1 blockchain (Nervos CKB) ensures the security and decentralization of the network while Layer 2 protocol provides scalable transactions, computing services, as well as multiple application layer protocols for various business applications.

In Nervos, the Nervos CKB and all layer 2 protocols work together to serve the crypto-economy. Nervos CKB (or layer 1) is where state is stored and defined, and layer 2 is the generation layer (or computation layer, these two terms are interchangeable) that processes most transactions and generates new states. Layer 2 participants submit newly generated states to the layer 1 eventually at the time they deem necessary. If those states pass the corresponding verification performed by nodes in a global network, the CKB stores them in a peer-to-peer node securely.Such a layered architecture separates state and computation, providing each layer more flexibility and scalability.

2. Investment institution

Polychain Capital, Sequoia, Blockchain Capital, Multicoin Capital, Huobi, etc.

3. Application and distribution

Token application:

CKB(CKByte) is the native token of Nervos CKB. CKB can be used as a secure storeof value and a medium of exchange, like Bitcoin. It can also be a value token behind smart contracts, like ETH. Users can store, execute, and even rent space on the Nervos Blockchain with CKB or simply “hodl” in the Nervos DAO for value preservation. CKB captures the total value of the network to increase security and aligning the interests of Users, Miners, Developers and Node operators.

The native token of the Nervos CKB is the "Common Knowledge Byte", or CKByte for short. CKBytes entitle a token holder to occupy part of the total state storage of the blockchain. For example, by holding 1000 CKBytes, a user is able to create a cell of 1000 bytes in capacity or multiple cells adding up to 1000 bytes in capacity.

Token distribution:

The genesis block of the Nervos Network will contain 33.6 billion CKBytes, of which 8.4 billion will be immediately burned. New issuance of CKBytes includes two parts - base issuance and secondary issuance. Base issuance is limited to a finite total supply (33.6 billion CKBytes), with an issuance schedule similar to Bitcoin. The block reward halves approximately every 4 years, until reaching 0 new issuance. All base issuance is awarded to miners as incentives to protect the network. The secondary issuance has a constant issuance rate of 1.344 billion CKBytes per year and is designed to impose an opportunity cost for state storage occupation. After the base issuance stops, there will only be secondary issuance.