While decentralized finance (DeFi) applications struggle with high transaction fees, the cryptocurrency market is looking for alternative solutions to eliminate the scaling problem.
One of them is Nervos Network… The protocol has whetted the appetite of investors with a 341 percent rally in a month. The project also has the approval of the Chinese government and shows that this project may become even more popular in the future.
Nervos Network is a blockchain project based in China that supports second layer scaling solutions. Since its inception, the project has worked on decentralized finance (DeFi) and asset tokenization.
The Nervos Common Knowledge Base (CKB) network provides virtual machines to support and process applications built over smart contracts using high-performance second tier.
Unlike Bitcoin, CKB’s Proof of Work (PoW) blockchain consensus engine can adjust mining difficulty in response to network conditions. Thus, the efficiency can be adjusted when the number of nodes (nodes) increases and decreases.
This base tier contains CKByte (CKB), a native utility token used for resource management and miner incentives. Participants can lock their tokens to win prizes.
Listing, government support and DeFi popularity boost rally
Nervos has been integrated into China’s blockchain-based service network (BSN) and five different permissionless blockchain protocols.
In December 2020, Nervos reached a key interoperability milestone by bridging the Ethereum and CKB network to simplify cross-chain transactions. Shortly after, the project published its “universal passport”, which allows various blockchain developers to program using a single interface.
On January 26, Binance listed CKB, and a few weeks later, Nervos Network received a $ 5 million fund to support projects building decentralized exchanges (DEX), lending platforms, and other DeFi-style protocols.
Given that CKB increased 341 percent last month to put the Nervos Network into the $ 1 billion market cap category, investors may consider waiting for the DeFi ecosystem to grow before taking positions.
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