Nervos is an ambitious newcomer on the crypto market and Changelly has long watched it with interest. The project attracted the attention of investors and developers since its purpose is not to launch another cryptocurrency in the ecosystem. Nervos is a simple connecting database between any blockchains.
Let’s make a small review of Nervos cryptocurrency and project itself and find out if it is profitable to mine CKB coin.
Table of Contents
Nervos (CKB) Crypto Basics
Nervos was launched in November 2019 by Nervos Network and aims to fix issues that plague both Bitcoin and Ethereum. Among them are scalability and value differences. To fix them, the Nervos team wants to implement effective scalability and raise the cost of their token by hosting other cryptocurrencies on their blockchain. Nervos supports smart contracts and is censorship-resistant.
CKB is a native token of the Nervos network. It scales with the value of other assets stored on the network: the more cryptos and tokens are there, the more valuable CKB becomes. This means that this token will continue raising its value the more attention and assets it attracts. Add to that the support of smart contracts, and you have a nice crypto bridge between different blockchains. Which is exactly what makes it so attractive for both crypto enthusiasts and investors.
Is It Profitable to Mine Nervos (CKB) Cryptocurrency?
Nervos (CKB) mining is profitable if you do it smartly. While it doesn’t possess much value right now, its main attraction is the potential value of the token. Since it only recently popped up on crypto radars, it hasn’t attracted many assets to its network. Once Nervos Network gets that ball rolling, it can become on the more popular cryptos on the market, standing along XLM and, maybe, even ETH.
Still, that is not the only thing that CKB can offer to its users and potential investors. There are quite a few things that could catch an eye of someone looking to delve into the crypto market:
- Mining competitions. As Nervos is always looking for new miners and new investors, it often holds different competitions with big prizes. As it is a PoW blockchain, it would allow you to fairly compete for a high sum, allowing you to enter the big leagues right from the start.
- You can double-mine Nervos and Ethereum. While it lowers the hash rate of both processes, it allows you to get more chances at receiving your mining prize.
- Almost unlimited blockchain scalability. At least, this is what the developers plan for their project. With it scaling its price with every asset, you can get a great crypto bridge between various blockchains.
While profitability can’t really be calculated until Nervos launches their mainnet, we can make educated guesses about it. As of May 8th, 2020, its average block time is 8.1 seconds, with the block reward being 1,064.5 CBT. It allows you to spend less time than the average crypto on the market. Below, you can see the Nervos Hash Rate chart. Nervos is a viable token to mine, even for a solo miner.
Nervos (CKB) Mining
Nervos allows mining on both the GPU and ASIC platforms.
While ASIC mining allows for greater yield and efficiency of mining, not every crypto has its own model. It is true for Nervos (CKB) as well, at least for now. However, it doesn’t mean that there are no compatible ASICs that can mine it. It works on the Eaglesong protocol, so every ASIC that supports this protocol can be used to mine CKB tokens.
A good example would be Bitmain Antminer K5, as well as Todek Toddminer C1 Pro. They have a good profitability rate (of $2.61 and $10.51, respectively). To get more info about them, you can read our article ‘Best ASIC Miners’.
While at first Nervos didn’t support GPU mining, now it is the main way to get some CKB tokens, along with trading. With the right mining rig, you can outperform not only CPU but even ASIC miner (though the latter would require a really good one). You will need to take into account how profitable your rig is before you start doing anything. It wouldn’t do to spend all your profits on paying energy bills.
Here you can see the performance of various GPUs that you can use in CKB mining.
Where to Store Nervos (CKB)
There are quite a few wallets where you can store your CKB tokens. The most prudent choice, in our opinion, would be to use one of the in-built wallets that crypto exchanges have. While it might not seem intuitive, you can always use them for mining, in addition to the exchange. At the same time, you will have a convenient and fast way to swap your crypto to another one. Here are some of the most popular Nervos wallets:
- imToken — a reliable and secure wallet that allows multi-blockchain management, dApp browsing, and crypto exchange.
- Bitpie — a crypto wallet aiming to provide secure asset storage and management to its users.
- RenrenBit — transparent service that provides crypto owners with multisig, cloud, HD wallets.
If you don’t want to store your tokens like that, there are other ways to do it. For example, there is an official wallet generator created by Nervos Network. It would allow you to keep your coins safe, but at the same time, you wouldn’t be able to quickly access the, or exchange them.
As you can see, this is more of a “safety vs. convenience” issue. While exchange wallets are secure, they are riskier than a cold wallet, but you can’t use coins in the cold wallet that quickly. You should decide what is more important for you, and roll with it.
With all that being said, now you have all information you need to decide whether you want to mine Nervos (CKB) or not. And if you decide that yes, this token is exactly what you need, you can choose the right tools, software, and wallets to make your mining efforts much more efficient. Stay tuned for more mining advice on our blog!
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Always double-check the mining methods you have chosen.