The Nervos Network is a decentralized, privacy-focused network that operates differently from standard blockchains. While a usual blockchain system verifies all transactions and data through a process agreed upon by all its users, the Nervos Network operates by checking the state or condition of its system using a shared set of data rules. Essentially, it means that Nervos has a unique way of maintaining and verifying its data, emphasizing privacy and open participation without needing permission.

According to Nervos Network documentation, the network is a solution to the lack of scalability and interoperability in Layer 1 blockchain networks. Named after the human nervous system, the network shares a similar layered structure. There is a consensus generation layer, a separate layer used as an intelligent protector and another layer reportedly designed for high-performance operation and privacy protection.

On the other hand, the Layer-2 protocol handles transactions and creates a new state, such as application activity and other requests for additional data storage. The base layer of the network, the Nervos CKB core network, also provides a stateful "Turing-complete" virtual machine. Its role is to support the processing needs of applications using smart contracts. This VM system is based on Bitcoin's UTXO bookkeeping model to store and monitor state changes in the blockchain. #CKBCoin $CKB