Why is CKB coin favored by so many institutions? Analysis of the reasons why CKB coin is favored by institutions

The birth of the Ordinals protocol broke the downturn of the bear market, not only igniting the Bitcoin ecosystem, but also sprung up countless Bitcoin side chains and Layer 2 projects. Among these projects, the market development of CKB currency has always been optimistic about the currency circle, and even occupy an important position in this field. In this regard, many investors do not understand why CKB currency is favored by so many institutions? According to the data analysis, the main reason why it is optimistic is the excellent security of CKB coin, innovative technical solutions, rich technology accumulation and increasingly perfect ecosystem, etc. The editor will analyze it in detail below.

Why is CKB coin favored by so many institutions?

The main reason why CKB coin is favored by so many institutions is that it has unparalleled advantages over other side chain solutions in terms of security, expanded Bitcoin programming capabilities, technology accumulation, and ecology. As the native token of Nervos Network, CKB has multiple uses, including paying transaction fees, participating in governance, and incentivizing network security and development. Nervos Network is a future-proof blockchain ecosystem designed to provide scalability, security and decentralized solutions.

The side chain is an independent blockchain and does not inherit the security of the main chain, so many side chain projects often lead to centralization due to too few nodes. CKB has adopted the same time-tested PoW consensus mechanism as Bitcoin from the beginning to ensure security and decentralization to the greatest extent.

In terms of expanding Bitcoin programming capabilities, CKB generalized the UTXO model and named it the Cell model. The Cell model continues the basic philosophy of Bitcoin UTXO, making it easy for the CKB chain to inherit the simple and secure features of Bitcoin. At the same time, through clever modifications, Cell has the ability to support smart contracts.

In addition to the highly flexible Cell model, CKB’s virtual machine is also very powerful. It uses the open instruction set RISC-V, which supports developers to develop smart contracts in any language. As long as they are compiled into the binary format of RISC-V with a suitable compiler, they can be executed. It is not only efficient, but also supports various cryptography. The algorithm, whether it is Bitcoin’s original Secp256k1 or the later introduced Schnorr, can be directly transplanted to run on the CKB blockchain.

In terms of user experience, the CKB mainnet is fully compatible with BTC addresses and wallets, which allows users of the Bitcoin ecosystem to seamlessly enter the CKB ecosystem. The inscription protocol Omiga on CKB already supports the Bitcoin wallet UniSat. Users of the Bitcoin ecosystem can directly use the UniSat wallet to deploy, mint, and transfer inscription assets on the CKB chain. Looking back at the EVM sidechains of those account models, when users switch from the Bitcoin ecosystem to the EVM sidechain, they have to switch wallets, which is very fragmented in terms of user experience.

In terms of ecology, CKB is also far ahead of other side chains. JoyID wallet uses biometric technology (fingerprint/face scan) to create and manage wallets. Users can use it without any blockchain knowledge. It also supports multiple chains. It is more powerful than MetaMask wallet in terms of functionality and does not lose to Web2 applications in terms of user experience. . CKB has its own DID system (.bit), which also supports multi-chain and Passkey. It is more powerful and has better compatibility than the Ethereum domain name service ENS.

How much can CKB currency rise in the future?

According to predictions by currency circle analysts, CKB currency may rise to $0.072 before the end of this year. Looking at the longer five-year timeline, the digital currency has the potential to grow to $0.14. But this is just an analyst's prediction and does not mean that the price will definitely be this in the future. Investors should take into account the unpredictability of the market and it is important to conduct thorough research before investing in any specific project, network or asset.

The core of CKB coin is the Nervos CKB blockchain. CKB is not only a digital asset, but also has a wide range of applications in the NervosCKB ecosystem. NervosCKB is different from public chains such as Ethereum. It has the same storage value as Bitcoin and the same application value as Ethereum. Because it uses a variety of technologies (including workload proof PoW, weighted proof PoS, etc.), this makes its blockchain ecosystem more free and flexible, and also means that it has the ability to meet various application needs.

CKB adopts the U-point equity certification mechanism, which allows CKB holders to better participate in consensus, voting and reduce ecological costs, thereby achieving the effect of promoting long-term ecological development. From a technical point of view, the prospect of CKB currency is very good, and its innovative technology of NervosCKB blockchain has laid a solid foundation for its development.

CKB coin can be used as a digital currency and value stable currency, and can also be used for staking and storage. For professionals in the blockchain field, CKB coins have high investment value. In addition, some storage applications also have high market demand, such as finance, insurance, justice, medical and other fields. CKB's ecosystem continues to enrich, and its market demand will continue to increase.

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