How To Buy Nervos Network (CKB)?

A common question you often see on social media from crypto beginners is “Where can I buy Nervos Network?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. 

Step 1: Create an account on an exchange that supports Nervos Network (CKB)

First, you will need to open an account on a cryptocurrency exchange that supports Nervos Network (CKB).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Nervos Network (CKB) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Nervos Network (CKB)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Nervos Network (CKB) or Nervos Network (CKB) trading pairs. Look for the section that will allow you to buy Nervos Network (CKB), and enter the amount of the cryptocurrency that you want to spend for Nervos Network (CKB) or the amount of fiat currency that you want to spend towards buying Nervos Network (CKB). The exchange will then calculate the equivalent amount of Nervos Network (CKB) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Nervos Network (CKB) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is Nervos Network (CKB)?

Nervos Network is a public blockchain and collection of protocols that aim to solve the scaling limitations facing traditional networks like Bitcoin and Ethereum. Nervos’ blockchain is a layer-1 protocol that uses Proof-of-Work (PoW) consensus and supports smart contract development. It also consists of a series of layer-2 scaling solutions to facilitate high-volume use cases. Nervos’ native token (CKByte or CKB) allows users and developers to claim storage space on the Nervos blockchain in proportion to their holdings.

The Nervos project first launched in 2018 in search of a solution for the scalability issues that plagued layer-1 networks, specifically smart contract platforms, at the time. Nervos sought to build a blockchain that could satisfy the performance needs of enterprise uses cases.

Nervos’ mainnet launched 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 (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.

The Nervos CKB (Common Knowledge Base) is the base layer. It 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). CKByte is used for resource management and miner incentivization and entitles the holder to an allocation of state storage space on the CKB blockchain. Participants can also lock tokens in the Nervos DAO, which enables deposits to receive compensation or “yield” on their holdings.

What is the CKB token?

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.

In Nervos, the network’s state is stored in a set of so-called “cells.” The change of state (like a transaction or smart contract call), as in the “update” of cell content, is done through cell destruction and cell creation, which means the content of the original cell is not directly changed. Every transaction actually destroys some cells and creates new ones. The newly-created cells will have new owners and store new data.

This cell system mimics Bitcoin’s UTXO model. When a cell is destroyed, it is marked as “destroyed” in the same way a UTXO is marked as “spent”, instead of being removed from the blockchain. Every cell can only be destroyed once, just as every UTXO can only be spent once. After a user releases state storage, they will receive an amount of CKBytes equivalent to the size of state (in bytes) their data was occupying.

What is the NervosDAO?

Nervos CKB includes a special smart contract called the NervosDAO. Users that deposit their holdings into the DAO receive a portion of the network’s secondary issuance (the base issuance being the block rewards for PoW miners). Using CKBs to store data on the CKB creates an opportunity cost to CKByte owners; they will not be able to deposit occupied CKBs into the NervosDAO to receive a portion of the secondary issuance.

The economic model of the CKB is an attempt in using an economic incentive to bound state growth. While CKBs are being used to store state, they cannot be used to earn secondary issuance rewards through the NervosDAO. This makes the secondary issuance a function like a “state rent” on state storage occupation. This economic model imposes state storage fees proportional to both the space and time of occupation, which is far different from the “pay once, occupy forever” models used by chains like Ethereum.

What makes Nervos Network (CKB) unique?

Nervos is a layered network that consists of a base general computation and consensus layer and a series of application layers. The first layer is Nervos’ CKB mainnet that features Proof-of-Work (PoW) mining for security. It works in tandem with the layer-2 protocols. Nervos CKB stores the network’s state (account balances and application activity) in cells, whereas Nervos’ layer-2 protocols process transactions and generate new states.

Nervos CKB also provides a stateful Turing-complete virtual machine (VM) to support and process applications built using smart contracts. The CKB VM uses a cell model (based on Bitcoin’s UTXO accounting model) to store and track state changes. This cell model facilitates the parallel processing of transactions and allow for the integration of light clients.

Nervos’ layer-2 protocols use the security provided by the base layer but can execute transactions faster and inexpensively relative to Nervos CKB. They can also serve as application-specific protocols with feature sets that cater to a particular use-case like privacy or finance.

Some of the core principles that led to the design of the Nervos Network include:

• A layer-1 blockchain’s native asset must be a store of value.
• Pushing scaling responsibilities to the second layer is preferable because layer-1 chains should be open and accessible. Designing for scalability at the base layer leads to compromises in decentralization and, sometimes, security. Instead, layer-1s should complement and not compete with layer-2 solutions.
• Proof-of-Work (PoW) as a Sybil resistance method is essential for layer-1 blockchains.
• The layer-1 blockchain must provide a generic programming model for interactive protocols (composability) and to facilitate communication between different layer-2s (interoperability).
• State storage has to have a clear and fine-grained ownership model to avoid the “tragedy of the commons” problem. State occupation must have an ongoing cost to deliver consistent long-term rewards to miners regardless of transaction demand.

Muta Layer-2 Framework

Muta is a proposed framework for building Nervos-based layer-2 blockchains. Muta chains will use Nervos CKB at their base but enabled developers to custom build a sidechain with distinct features, such as a Proof-of-Stake (PoS) or Delegated Proof-of-Stake (DPoS) design. Nervos developers created Muta to improve overall network performance (through the parallelization of computation), enable the development of customizable layer-2 chains, and unlock interoperability between other EVM or WASM-based networks. Muta is still in beta.

Lumos App Framework

Lumos is a JavaScript/TypeScript based application framework for Nervos CKB. It aims to simplify application development on Nervos. Lumos is still a work in progress.

Nervos Network development updates in 2023

In 2023, the Nervos Network (CKB) witnessed significant developments, reinforcing its position as a multi-layered blockchain ecosystem. Here are some of the key updates and advancements for the year:

• First Halving of CKB: Nervos Network marked a pivotal milestone with its first halving event on November 19th, 2023. This halving reduced CKB’s hard-capped base issuance rate by half, from 7.92% to 3.77%. This change brought the real inflation rate to one of the lowest among major Layer 1 blockchains. The halving lowered the annual base issuance from 4.2 billion to 2.1 billion CKB, while the secondary issuance of 1.344 billion CKB annually remained unchanged. This secondary issuance is key to preventing excessive state growth and ensures a sustainable income for miners, independent of transaction volume​​​​.

• The Common Knowledge Base (CKB) Layer 1: CKB, the primary layer of the Nervos Network, is known for its flexibility and interoperability. It uses Proof-of-Work for consensus, employs a unique UTXO model, and operates with a RISC-V instruction set-based virtual machine. This setup enables the support of various scaling and application solutions, maintaining a resilient, neutral, and permissionless global digital infrastructure​.

• Innovative Accounting and Virtual Machine Models: CKB has set new industry standards with its novel accounting model, the Cell model, and the CKB-VM (virtual machine). The Cell model is a generalization of Bitcoin’s UTXO model, giving developers control over on-chain data structures and transaction authorization logic. The CKB-VM allows for the deployment of various cryptographic algorithms without the need for hard forks, showcasing protocol-level abstraction and flexibility​.

• Addressing State Bloat: Nervos Network’s design confronts the issue of state bloat head-on. It uses a multi-layered architecture that ties state growth to the CKB token, where one CKB represents the right to store one byte of data on-chain. This approach minimizes node hardware requirements and ensures network decentralization by pushing computation off-chain and restricting blockchain state growth​.

• Modular Architecture and Tokenomics: Nervos Network was designed with a modular architecture, enabling it to scale to millions of transactions per second through various Layer 2 networks without compromising security or decentralization. CKB’s tokenomics align the interests of all network participants, ensuring long-term miner security and protecting token holders from inflation​​.

• Sidechain Development and User Experience: The Nervos Network encourages the development of sidechains, such as Axon, for high throughput requirements, and supports building universal decentralized applications. This approach, combined with the network’s protocol-level account abstraction, aims to provide seamless experiences across blockchains​.

These updates and improvements in 2023 highlight Nervos Network’s ongoing commitment to innovation, security, and sustainability in the blockchain space. The network’s focus on scalability, interoperability, and user-friendly blockchain experiences positions it as a notable player in the blockchain industry.

Official website: https://www.nervos.org/

Best cryptocurrency wallet for Nervos Network (CKB)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Nervos Network (CKB)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).