I. Naively Entering the Industry
In the first half of 2021, when the price of CKB skyrocketed, it was also at this time that I embarked on the path of becoming a CKB miner, filled with hopes for the future of digital currency, stepping into this industry full of unknowns and challenges.
The mining site, this mysterious place located in a remote area, is full of novelty and curiosity for me. Upon entering the mining facility for the first time, I was shocked by the spectacular sight of hundreds of machines arranged closely on both sides, extending for hundreds of meters. The rumbling machines, along with the constantly flashing green LED lights, formed my daily work routine. Here, time is money, and every second relates to CKB's output.
II. Migratory Birds
Electricity costs, maintenance fees, labor costs, and depreciation of mining facilities weigh heavily on our minds. To reduce costs, we had to migrate like migratory birds, seeking places with cheaper electricity. In winter, we mine in cold regions such as Xinjiang and Inner Mongolia, taking advantage of the local low-cost electricity resources; in summer, we move to areas with abundant hydropower resources like Sichuan, enjoying the low-cost hydroelectric power during the flood season. Although this migratory lifestyle is tough, every time I see the mining profits of CKB, an inexplicable sense of satisfaction arises in my heart.
III. CKB's mining mechanism is also constantly iterating and upgrading
$CKB (Nervos Network)'s mining mechanism evolution is a gradual development and improvement process:
Initial phase: Adoption of the self-developed Eaglesong mining algorithm
CKB launched in 2019 with a PoW (Proof of Work) + UTXO (Unspent Transaction Output) model, and its mining algorithm is the self-developed Eaglesong.
This algorithm ensures the security and decentralization of the CKB network, laying a solid foundation for the subsequent mining mechanism.
Transition phase: Smoothly transitioning to the ASIC mining era
After April 2020, CKB smoothly transitioned to the ASIC mining era.
The use of ASIC miners has improved mining efficiency, further ensuring the security and stability of the CKB network.
During this period, CKB's mining computing power continuously grew, preparing for the subsequent halving of mining output.
Halving mechanism implementation: Controlling token supply, stabilizing prices
The halving mechanism of CKB is similar to Bitcoin's, meaning that every time a certain number of blocks (every 8.4 million blocks) is generated, the mining reward is halved.
The first halving occurred on April 19, 2022, at a block height of 16.8 million. This event had a significant impact on CKB's price and market performance, as investors typically anticipate a reduction in supply, driving up the token's value.
The next CKB halving is expected to occur in 2026, at a block height of 25.2 million; the third halving will take place in 2030, at a block height of 33.6 million.
Current phase: Mature mining mechanism, ongoing ecosystem development
Currently, CKB's mining mechanism has become relatively mature, and the network's computing power is stable.
As a Layer 2 solution for Bitcoin, CKB has advantages in security, expanding Bitcoin's programming capabilities, technical accumulation, and ecosystem.
CKB has also launched the RGB and RGB++ protocols, which address the data island problem and bring Turing-complete contract extensions and performance improvements to Bitcoin.
IV. Unavoidably Going Overseas in 2022
With the tightening of domestic regulatory policies and the strain on electricity resources, we decided to migrate our mining facility overseas to seek broader horizons. After some investigation, we finally chose a small island nation in Southeast Asia as our new mining base.
It is a place full of exotic charm, with blue skies, white clouds, and blue seas, yet beneath this beautiful scenery lies our mining battlefield. We set up a temporary mining facility by the seaside, placing those rumbling machines in a warehouse by the sea. The sea breeze, mixed with salty moisture, caresses our faces, while the roar of the machines becomes our most familiar melody.
Here, we faced unprecedented challenges. Language barriers, cultural differences, and the uncertainty of local policies created immense pressure for us. However, it was these challenges that made us more united and resilient. We worked together to overcome one difficulty after another, gradually bringing the mining facility onto the right track.
V. Final Thoughts
CKB definitely has a future: An ideal Layer 2 solution for Bitcoin expansion
CKB (Nervos Network) has emerged as an innovative cryptocurrency and technology platform in recent years in the field of Bitcoin Layer 2 expansion. It not only inherits Bitcoin's core characteristics but also brings higher security, transparency, and scalability to the Bitcoin network through its unique technical advantages. Below is a detailed introduction to the uniqueness and technical advantages of CKB as a Layer 2 solution for Bitcoin expansion:
(I) CKB's Technical Foundation and Advantages
PoW + UTXO Combination:
CKB adopts the same PoW (Proof of Work) consensus mechanism as Bitcoin, which means it also relies on miners' computing power to maintain the network's security and decentralization. This mechanism ensures that the CKB network remains highly stable when facing malicious attacks.
The UTXO (Unspent Transaction Output) model is one of Bitcoin's core characteristics, and CKB also adopts this model. The UTXO model allows every transaction to be clearly tracked and verified, thus enhancing the transparency and security of transactions.
Generalized UTXO Model (Cell):
CKB has innovated based on the UTXO model by introducing the concept of Cell. Cells not only support storing transaction data but also any type of data, which enables CKB to support a wider range of application scenarios.
Through the Cell model, CKB achieves refined management of data, improving data security and usability.
Virtual Machine Support:
CKB's virtual machine is based on the RISC-V instruction set and supports multiple programming languages, ensuring that smart contracts can be executed efficiently and securely on CKB.
The introduction of the virtual machine enables CKB to support complex logical operations and data processing, providing developers with more space for innovation.
(II) RGB++ Protocol: Supports multi-asset issuance and circulation, strengthens cross-chain interoperability.
Multi-asset issuance and circulation:
The RGB++ protocol is an innovative asset issuance and circulation protocol introduced by CKB. It allows users to issue new assets on the CKB chain and circulate these assets to other blockchains through CKB's cross-chain capabilities.
The RGB++ protocol combines Bitcoin's UTXO model with CKB's Cell model, solving the data island problem, allowing assets to circulate freely between different blockchains.
Strengthening cross-chain interoperability:
CKB achieves interoperability with other blockchains through the RGB++ protocol. This means users can seamlessly transfer assets between different blockchains without worrying about assets being locked or lost.
The RGB++ protocol also achieves direct interoperability between Bitcoin assets and CKB chain assets through a homomorphic binding mechanism that maps Bitcoin's UTXO to CKB's Cell.
Breaking traditional barriers to asset issuance and cross-chain circulation:
The RGB++ protocol solves many obstacles present in traditional asset issuance and cross-chain circulation through innovative mechanisms. For example, it eliminates the need to exchange transaction histories and data through P2P networks, moving all smart components directly on-chain, simplifying off-chain logic and accelerating the development process.
The RGB++ protocol also supports non-interactive transactions and transaction folding, further improving the convenience and efficiency of transactions.
As a Layer 2 solution for Bitcoin expansion, CKB has unique technical advantages and broad application prospects. It not only inherits Bitcoin's core characteristics but also brings higher security, transparency, and scalability to the Bitcoin network through innovative technologies and protocols. With the continuous development of CKB technology and the ongoing growth of its ecosystem, it is expected to become an indispensable part of the Bitcoin ecosystem.
