Introducing Nervos CKB and the Multi-asset, Store of Value Security Model


The Nervos Common Knowledge Base or CKB innovates
on bitcoin’s proof of work “store of value” security model. Bitcoin’s proof of work has delivered ever
increasing security for more than 10 years without a single successful hack. Miners are paid a fixed BTC amount to secure
the network, and as BTC’s price increases, so do the rewards, attracting more miners,
and increasing security. Smart contract platforms like Ethereum support
multiple assets, expanding the scope of blockchain applications. But when these assets increase in value, there
is a greater incentive to attack the platform but no increased incentive to maintain security. This is because security is paid in ETH and
the price of ETH is independent from these other assets. To be a multi-asset, store of value platform,
the security of the network needs to grow with the value of the assets it protects. Nervos CKB does this by capturing the total
network value through its native token, the CKByte,which entitles their holder to storage
on the blockchain. In this way, it is equivalent to land ownership. As demand for land to store assets on CKB
increases, demand for CKBytes is expected to grow as well. “Land owners” are taxed for space occupied
while token holders are protected in the Nervos DAO. As more assets are stored, CKByte demand is
expected to increase, raising security, and raising the attractiveness of storing valuable
assets. In a decentralised future, a multi asset blockchain’s
value will come from its ability to safely and securely issue and store assets. Sustainable security for a layer 1 multi asset
platform is therefore essential for long term success. Sustainable security for a layer 1 asset platform
is necessary for long term success because in a decentralized future a multi asset blockchain’s
value comes from its ability to safely issue and store assets. Much like Bitcoin’s Network effects and
first mover advantage to become the defacto universal store of monetary value, as the
first truly multi asset, store of value platform we see CKB becoming the universal platform
for store of assets. CKB the multi asset, store of value focused
smart contract platform

Leave a Reply

Your email address will not be published. Required fields are marked *