<s>
Nervos	B-Protocol
Network	I-Protocol
is	O
an	O
open-source	B-License
blockchain	B-Application
platform	O
.	O
</s>
<s>
It	O
consists	O
of	O
multiple	O
blockchain	B-Application
layers	O
that	O
are	O
designed	O
for	O
different	O
functions	O
.	O
</s>
<s>
Other	O
blockchains	B-Application
on	O
the	O
platform	O
can	O
use	O
proof-of-stake	B-Protocol
consenus	O
models	O
.	O
</s>
<s>
Smart	B-Application
contracts	I-Application
and	O
decentralized	B-Application
applications	I-Application
can	O
be	O
deployed	O
on	O
any	O
layer	O
.	O
</s>
<s>
Nervos	B-Protocol
Network	I-Protocol
was	O
founded	O
in	O
2018	O
by	O
Jan	O
Xie	O
,	O
Terry	O
Tai	O
,	O
Kevin	O
Wang	O
,	O
Daniel	O
Lv	O
,	O
and	O
Cipher	O
Wang	O
.	O
</s>
<s>
Nervos	B-Protocol
Network	I-Protocol
's	O
design	O
philosophy	O
is	O
based	O
upon	O
utilizing	O
multiple	O
blockchain	B-Application
layers	O
to	O
achieve	O
different	O
functions	O
.	O
</s>
<s>
Layer	O
2	O
and	O
above	O
benefit	O
from	O
this	O
and	O
are	O
able	O
to	O
favor	O
greater	O
throughput	O
demands	O
of	O
high-performance	O
applications	B-Application
.	O
</s>
<s>
The	O
foundational	O
layer	O
of	O
Nervos	B-Protocol
Network	I-Protocol
is	O
known	O
as	O
the	O
Common	O
Knowledge	O
Base	O
.	O
</s>
<s>
This	O
currency	O
serves	O
as	O
a	O
store	O
of	O
digital	O
asset	O
and	O
executes	O
smart	B-Application
contracts	I-Application
.	O
</s>
<s>
1	O
CKB	O
represents	O
1	O
byte	O
of	O
storage	O
on	O
the	O
blockchain	B-Application
.	O
</s>
<s>
The	O
key	O
components	O
of	O
Nervos	B-Protocol
Network	I-Protocol
's	O
layer	O
1	O
design	O
are	O
NC-Max	O
,	O
the	O
Cell	O
Model	O
,	O
and	O
CKB-VM	O
.	O
</s>
<s>
Layer	O
1	O
achieves	O
cryptographic	O
consensus	O
through	O
proof	O
of	O
work	O
,	O
using	O
an	O
enhanced	O
version	O
of	O
Bitcoin	B-Protocol
's	O
Nakamoto	B-General_Concept
consensus	I-General_Concept
algorithm	O
:	O
NC-MAX	O
.	O
</s>
<s>
The	O
consensus	O
process	O
uses	O
a	O
novel	O
hash	B-Error_Name
function	I-Error_Name
called	O
"	O
Eaglesong.	O
"	O
</s>
<s>
The	O
accounting	O
method	O
on	O
layer	O
1	O
is	O
an	O
expansion	O
of	O
Bitcoin	B-Protocol
's	O
UTXO	B-Protocol
model	O
,	O
and	O
is	O
dubbed	O
the	O
"	O
Cell	O
model	O
,	O
"	O
where	O
a	O
cell	O
is	O
the	O
most	O
basic	O
structure	O
for	O
representing	O
a	O
single	O
piece	O
of	O
data	O
on	O
the	O
blockchain	B-Application
.	O
</s>
<s>
The	O
Cell	O
model	O
differs	O
from	O
the	O
original	O
UTXO	B-Protocol
model	O
by	O
being	O
programmable	B-General_Concept
,	O
thereby	O
supporting	O
smart	B-Application
contracts	I-Application
.	O
</s>
<s>
Additionally	O
,	O
a	O
cell	O
is	O
able	O
to	O
store	O
any	O
form	O
of	O
arbitrary	O
data	O
on-chain	O
,	O
such	O
as	O
non-fungible	O
tokens	O
(	O
NFTs	O
)	O
,	O
digital	O
assets	O
,	O
compiled	O
code	O
,	O
or	O
serialized	O
data	O
like	O
JSON	B-General_Concept
strings	I-General_Concept
.	O
</s>
<s>
The	O
Cell	O
model	O
functions	O
as	O
a	O
method	O
of	O
value	O
capture	O
of	O
the	O
data	O
that	O
is	O
stored	O
on	O
the	O
blockchain	B-Application
:	O
each	O
cell	O
is	O
a	O
data	O
container	O
that	O
requires	O
CKB	O
in	O
order	O
to	O
be	O
formed	O
.	O
</s>
<s>
Another	O
feature	O
of	O
this	O
design	O
is	O
known	O
as	O
state	O
rent	O
:	O
CKB	O
that	O
is	O
deployed	O
in	O
cells	O
and	O
occupying	O
storage	O
on	O
the	O
blockchain	B-Application
is	O
not	O
protected	O
from	O
inflation	O
.	O
</s>
<s>
CKB	O
that	O
is	O
not	O
used	O
in	O
cells	O
can	O
be	O
locked	O
in	O
a	O
smart	B-Application
contract	I-Application
called	O
the	O
Nervos	O
DAO	O
,	O
whereby	O
users	O
receive	O
additional	O
CKB	O
that	O
is	O
proportional	O
to	O
the	O
rate	O
of	O
new	O
CKB	O
(	O
secondary	O
)	O
issuance	O
.	O
</s>
<s>
This	O
creates	O
an	O
opportunity	O
cost	O
for	O
storing	O
unnecessary	O
data	O
on	O
the	O
blockchain	B-Application
and	O
is	O
designed	O
to	O
encourage	O
efficient	O
use	O
of	O
limited	O
space	O
.	O
</s>
<s>
The	O
CKB	O
virtual	B-Architecture
machine	I-Architecture
(	O
CKB-VM	O
)	O
is	O
a	O
software-based	B-Architecture
emulated	I-Architecture
computer	I-Architecture
that	O
executes	O
smart	B-Application
contracts	I-Application
on	O
Nervos	B-Protocol
Network	I-Protocol
's	O
base	O
layer	O
.	O
</s>
<s>
Like	O
the	O
Ethereum	B-Application
virtual	B-Architecture
machine	I-Architecture
,	O
CKB	O
is	O
a	O
Turing-complete	B-Algorithm
development	O
environment	O
,	O
but	O
also	O
integrates	O
the	O
RISC-V	B-Device
instruction	O
set	O
.	O
</s>
<s>
RISC-V	B-Device
is	O
a	O
computer	O
instruction	O
set	O
similar	O
to	O
the	O
one	O
that	O
powers	O
a	O
computer	O
or	O
a	O
smartphone	O
device	O
,	O
and	O
provides	O
raw	O
instructions	O
directly	O
to	O
the	O
CPU	O
.	O
</s>
<s>
Any	O
required	O
cryptographic	O
primitives	O
can	O
be	O
installed	O
by	O
being	O
deployed	O
on	O
the	O
blockchain	B-Application
.	O
</s>
<s>
Furthermore	O
,	O
it	O
enables	O
greater	O
interoperability	O
with	O
other	O
blockchains	B-Application
as	O
it	O
can	O
recognize	O
different	O
cryptographic	O
keys	O
and	O
address	O
schemes	O
.	O
</s>
<s>
The	O
user	O
experience	O
is	O
also	O
streamlined	B-Application
by	O
allowing	O
users	O
to	O
use	O
their	O
existing	O
preferred	O
wallets	O
instead	O
of	O
needing	O
to	O
install	O
new	O
ones	O
.	O
</s>
<s>
Two	O
layer	O
2	O
blockchains	B-Application
currently	O
exist	O
on	O
Nervos	B-Protocol
Network	I-Protocol
:	O
Godwoken	O
and	O
Axon	O
.	O
</s>
<s>
Godwoken	O
is	O
a	O
blockchain	B-Application
protocol	O
that	O
uses	O
a	O
scaling	O
solution	O
known	O
as	O
optimistic	O
rollup	O
,	O
and	O
can	O
be	O
configured	O
to	O
run	O
any	O
virtual	B-Architecture
machine	I-Architecture
or	O
consensus	O
model	O
.	O
</s>
<s>
The	O
current	O
iteration	O
of	O
Godwoken	O
runs	O
the	O
Ethereum	B-Application
virtual	B-Architecture
machine	I-Architecture
(	O
EVM	O
)	O
,	O
allowing	O
developers	O
to	O
use	O
of	O
tools	O
and	O
software	O
developed	O
for	O
Ethereum	B-Application
while	O
directly	O
interfacing	O
with	O
Nervos	O
and	O
utilizing	O
CKB	O
.	O
</s>
