Cryptocurrencies often depend on hype and marketing to drive success. While this may temporarily boost prices in the short term, it fails to address fundamental issues with individual projects. In contrast, some of the most successful projects fly under the radar for years before exploding onto the scene with a fully realized product and robust ecosystem. The Nervos Network’s behind-the-scenes work with their CKByte (CKB) cryptocurrency exemplifies this type of action.
Establishing their blockchain as a native layer-1 solution for cross-chain and interoperable applications, Nervos has spent years preparing for the current decentralized finance ecosystem overtaking the cryptocurrency industry. Nervos believes that blockchain technology must achieve a certain degree of universal communication before it can fully displace more traditional financial systems. By supporting a variety of virtual machines and cross-chain links, they’ve brought this idea surprisingly close to reality – while staying out of the top 100 cryptocurrencies by market cap.
The cryptocurrency industry features hundreds, if not thousands, of disparate blockchains unable to communicate with one another. Like a nightmarish version of the PC versus Mac operating system troubles of the 90s and early 2000s, users must maintain multiple wallets and juggle cryptocurrencies to achieve their desired results.
Nervos is designed to solve this problem, with Nervos-native dApps easily integrating with all available virtual machines. In the real world, the Nervos Network also secured implicit government backing through the Blockchain-based Service Network. Considering the current state of China’s cryptocurrency market, this is a considerable victory and a show of power for CKB.
Nervos: Supporting Other DeFi Projects
As part of their commitment to expanding DeFi availability, Nervos pledged $5 million in grants to start-up projects.Given the nature of DeFi, Nervos’ “universal passport” system will greatly expand access to developers signing on with said grants. CKB launched support for the Ethereum Virtual Machine late last year, opening the network to ERC-20 tokens. As most projects depend on the ERC-20 standard, this brings Nervos interoperability to the vast majority of the cryptocurrency world.
In addition, Cardano’s first cross-chain bridge opened with Nervos earlier this summer. At this early stage in the deployment of Cardano assets, Nervos availability all but ensures a heavy degree of developer crossover. The Nervos Network’s success in establishing these cross-chains bodes well for the future in the industry.