What is CKB?
The Nervos Network is an open-source solution that facilitates a network of protocols. Nervos’ first layer is called the “common knowledge base” (abbreviated to CKB), runs a proof of work consensus mechanism which is the base for additional layer 2 protocols to be built upon. The Nervos Network’s layer 2 solutions such as sidechains and state channels facilitate its scalability, while its base layer support the network’s security, serving as a custodian of assets and transactions processed in the layer 2 chains. The CK Byte (CKB) acts as the Nervos Network base layer’s store of value, and is used to facilitate base layer transactions, as well as distribute mining rewards. CKB is also used for staking within the Nervos Decentralised Autonomous Organisation (DAO). CKB holders can lock their CKB with the DAO to earn staking rewards to protect themselves from inflationary pressures, as CKB adoption grows.