Let's review Nervos progress in 2022 and evaluate their achievements. While the team has made significant strides in certain areas, there are concerns regarding their marketing strategy. Although Nervos has impressive technology on paper, success ultimately depends on implementation. Moreover, they face tough competition from more popular rivals like Polkadot and Cosmos. In the cryptocurrency world, hype can often be more important than technology, and many coins with decent tech have failed due to poor marketing. Given these concerns, it's possible that Nervos may struggle to succeed without an effective marketing strategy, no matter how great their idea is. It is also worth noting that, Nervos currently lacks any innovative feature that could trigger a significant inflow of funds into its blockchain.
Other than that it's worth noting that the Nervos team has made progress in meeting the goals they set out in their roadmap. Here are some of the key accomplishments they've achieved so far:
Address
In 2022, there was a notable increase in the number of unique addresses used in the Nervos (CKB) network (Pic #1, p1). The growth rate was more than three times higher than that of the previous two years. With such an impressive pace, the number of addresses is expected to surpass 1.5 million in the near future.
Hashrate
Nervos CKB is a Proof-of-Work (PoW) blockchain that relies on miners to secure its network. In the first four months of 2022, the hashrate of CKB remained stable at around 140 PH/s, but it decreased in the second half of the year due to the bear market, dropping to 60 PH/s. However, mining hardware manufacturers are releasing new and more efficient mining rigs. Expected to boost the hashrate in the near future. This is a positive development for the network's security and for all the applications built on top of it. (Pic #1, p2)
Token Burnt
The native token of Nervos, CKByte or CKB, has a limited on-chain state space, which means that the demand for data storage on the Nervos blockchain could increase the demand for CKB. The token has a primary issuance with a hard cap of 33.6 billion, with block rewards halving every 4 years, and a fixed annual secondary issuance of 1.344 billion to compensate miners for storing the app state and ensuring the network's security and longevity. The secondary issuance is distributed among miners, Nervos DAO depositors, and a treasury fund based on CKB usage. Currently, the treasury fund is being burned, and more than 2.8 billion tokens (Pic #2), which represents over 68.2% of the secondary issuance, have been burnt so far.
Nervos DAO
Investors can prevent their CKB holdings from being diluted by secondary issuance by depositing them in the Nervos DAO. The number of deposits and depositors has grown steadily over time (Pic #3, p1). As of the time of writing, more than 8 billion CKB are locked up in the Nervos DAO, and the number of depositors is 45.4 thousand.
Cells
In 2022, the number of live cells on CKB has been growing exponentially, fueled by the success of various DeFi projects. A Cell, which is the most basic structure needed to represent a single piece of data on the blockchain, is a generalized UTXO. Unlike Bitcoin UTXO, which can only contain Bitcoin balance or static data, a cell can contain a wide range of data, including CKB tokens, code like Javascript, or serialized data like JSON strings, giving developers complete flexibility in what they choose to work with. As more apps are built on top, and the number of on-chain users rises, the demand for live cells grows. For instance, creating a .bit account requires approximately 206 CKB to create the cell, and the number of registered .bit accounts has risen remarkably from 47.3k at the end of last year to 262.1k now. There are 30.61 million live cells on the network, which is a significant increase from the 13.53 million at the start of 2022 year (Pic #3, p2).
Technical updates
It's worth noting the significant technical achievements of the Nervos (CKB) team, including the successful launch of a major protocol upgrade or hard fork to Layer 1, resulting in the creation of a new mainnet named "Mirana." Additionally, the deployment of Force bridge for bridging with the Binance Smart Chain and the CKB light client on the Pudge testnet has been completed. The Nervos Network is also nearing completion of Axon, a sidechain SDK that promises to enhance the capabilities of the project even further. All of these advancements show that the Nervos team is constantly working on the project.
Source: nervos.org/blog; twitter.com/NervosNetwork; dao.ckb.community Show Less
