The author invested heavily in the first seal of Rgb++ in the CKB ecosystem earlier this year, and finally won nearly 30X
Successfully reached A7. I have studied it for a long time and I really think that CKB's new protocol will really trigger the second financial revolution of Bitcoin.
The ecosystem is taking off, so I bet a lot, but in the end I failed, and succeeded A7. Now I will give you a detailed introduction to what CKB is, and I hope everyone can make money. A7 A8 A9 is not a dream!
1. What is CKB?
CKB is the underlying L1 blockchain of the Nervos Network, which operates in a similar way to Bitcoin, using a Proof of Work (PoW) consensus mechanism. It uses NC-MAX, an upgraded version of the Bitcoin algorithm, to improve network efficiency and responsiveness by speeding up transaction confirmation times and reducing orphan block rates. Bitcoin targets a 10-minute block interval and adjusts mining difficulty approximately every two weeks. CKB dynamically adjusts the block interval (approximately every four hours) based on changes in network activity to optimize performance.
2. What are the advantages of CKB?
Security
CKB secures the network using the Eaglesong function, an ASIC-neutral custom hash function that is an alternative to the widely used SHA256 hash function. Eaglesong is a sponge function that optimizes multiple cryptographic elements to provide the same level of security as other proof-of-work (PoW) hash functions, while being tailored specifically for the Nervos Network.
Convenience of payment channels
As an underlying public chain, CKB can be extended through payment channels, such as Perun, a payment channel framework developed by Polycrypt. By processing transactions off-chain and settlement on-chain, these payment channels can support a variety of applications from small payments to payment gateways, thereby improving the performance of CKB. Perun utilizes CKB's Cell model, where cells carry capacity, Lock Script, Type Script, and data to manage the state of the channel. One of the channel implementations (PerunLockScript) can manage the access rights of the channel's real-time Cell, while the other implementation (PerunTypeScript) can handle the verification logic of state transitions. These transitions are automatically managed from the channel being funded to being closed. As of press time, Perun is still in testing and has not yet been launched on the CKB mainnet. Nervos core developers are also working to connect CKB to Bitcoin's Lightning Network, enabling users to exchange BTC and CKB without relying on third parties.
3. What is the Cell Model?
The Cell model is the core of the CKB data structure, which can store and verify any data on the chain. Bitcoin's original script language and UTXO model limit its ability to perform complex calculations required by smart contracts. In contrast, CKB generalizes the UTXO model to allow more flexible data storage and verification. Unlike Bitcoin, which uses a single script to verify transactions, CKB introduces dual scripts in its Cell model:
The Lock Script ensures that only authorized users can access and use the contents of the Cell, similar to Bitcoin.
Type Script is an optional script that sets rules for how the cell can be used or changed in future transactions.
This system enables CKB to support more functionality than Bitcoin's limited options, making it more suitable for a variety of applications. Each Cell in CKB is a programmable Cell that can hold different data types, such as tokens, smart contracts, and specific application states. It can also run complex scripts similar to those in Turing-complete languages. Cells run independently, which means they can be updated or referenced without affecting other parts of the blockchain, improving scalability through parallelism.
4. What is CKB-VM
CKB-VM is CKB's execution engine for running smart contracts and decentralized applications. The virtual machine uses the RISC-V instruction set, a flexible, simple, open source hardware architecture set (ISA) that supports multiple programming languages, including popular languages such as C and Rust. This wide compatibility sets CKB-VM apart from other blockchain virtual machines that are typically limited to specific languages, opening it up to a wider developer community. The CKB network also supports SDKs for mainstream languages such as JavaScript, Rust, Go, and Java, making it easier for developers to develop with familiar tools. This makes it easier for developers to create complex decentralized applications using familiar programming languages.
In addition, CKB-VM's architecture provides predictable gas fees, secure execution, and efficient integration with the Cell model, which helps to effectively manage states and verify transactions. The predictable gas fee model avoids unexpected fees, improves user experience, and simplifies contract development.
5. CKB’s Token Economics
Nervos Network’s native token CKByte (CKB) plays an important role in maintaining network security and incentivizing efficient storage. The main roles of CKB in the network include:
Granting token holders data storage rights.
As transaction fee on the chain.
Distributed to miners as block rewards to ensure network security.
In addition, CKB tokens have three sources: (1) Genesis block; (2) Basic issuance; (3) Secondary issuance.
Genesis Block
When the mainnet was launched in November 2019, 33.6 billion CKB tokens were minted in the genesis block, of which 8.4 billion CKB tokens (25% of the initial issuance) were immediately destroyed. Of the 8.4 billion CKB destroyed, 5.04 billion tokens were used for on-chain storage ("occupying on-chain space"), and the remaining 3.36 billion tokens were in a liquid state ("liquidity"). The purpose of assigning the corresponding status to these destroyed tokens is to allow miners to initially receive at least 15% of the secondary issuance and the treasury fund to receive at least 10%. It is worth noting that all CKB tokens currently allocated to the treasury fund have been destroyed, and this setting can only be changed through a network hard fork.
The CKB in the genesis block is distributed as follows:
Public Sale (~21.50%): The largest portion of the genesis block was provided to public sale investors in 2018 and all was released when the mainnet was launched in November 2019.
Ecosystem Fund (17.00%): The Ecosystem Fund will support third-party developers within the Nervos ecosystem. In the Genesis Block plan, 3% of this grant will be in place when the mainnet is launched, and the rest will be distributed over two years, ending in December 2022.
Team (15%): Reserved for the project team, with a four-year lock-up period ending in May 2022.
Private placement (14%): provided to private placement investors in July 2018. 66.60% of it was released at the launch of the mainnet, and the rest ended the two-year lock-up period in 2020.
Partners (5%): This grant is reserved for strategic partners who help build the Nervos Network and has a four-year lockup period.
Testnet Rewards (0.5%): These rewards are distributed in full to testnet and bug bounty program participants at mainnet launch.
Destruction (25%): In the genesis block, this portion is directly destroyed to ensure that miners and treasury funds continue to receive secondary issuance.