Is Nervos Network Halal: Is CKB Halal?

is ckn halal

In this article we do a complete Shariah screening of Nervos Network to determine if CKB is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in CKB, but have a read and see if you are comfortable with our assessment first.


What is Nervos Network?

The Nervos Network is a decentralized blockchain solutions ecosystem. The platform intends to offer a number of services to assist developers in building universal functions of decentralized applications (DApps), accessible from any interface as well as from any digital asset. Nervos believes that making the ecosystem of DApps universal, allowing users to access using any interface gives greater flexibility in relation to currencies and exchanges.



Nervos Network, related to scalability, sustainability, and cross-chain operations, is designed with multiple protocols and innovations. The network has also launched a scalable, EVM-compatible layer, to provide rapid and fast-facing solutions.



The Nervos Network is built on the Nervos CKB (common knowledge base) blockchain, a layer-1 decentralized network. A layer-1 network is a set of tools that seek to improve the scalability of the base protocol. The Nervos CKB works with various layer-two protocols inherent to the ecosystem to serve the crypto economy. These layer-2 protocols are computational layers that aid the platform process the transactions on the platform. Having multiple layers of architecture, Nervos reports, aids the ecosystem get flexibility along with improved scalability.



The native currency of Nervos is the CKByte (CKB) token, which is a store of value and can also be used as a means of payment on the platform. The platform collects platform fees in CKB tokens as a reward to those who validate blocks and rewards the validators with the same. Nervos Network wants to facilitate growth for other direct and indirect digital assets of the network that drive up the value of CKB. Holding its CKB tokens also helps the CKB token grow in contrast to speculation. The CKB token also helps hold other digital assets on the Nervos Network platform.


Further details on Nervos website



Who Invests In Nervos?



500 Startups

Access Ventures

Bixin Capital

Blockchain Capital

Breyer Capital LLC

CMS Holdings

Dekrypt Capital

Distributed Global

Dragonfly Capital

Electric Capital

FBG Capital

Frees Fund


Huobi Capital

Kindred Ventures

Matrix Partners

Multicoin Capital

Polychain Capital


Sequoia Capital

Unity Ventures

zk Capital


Is Nervos Network Halal: Is CKB Halal? We’d Love to Hear Your Thoughts

Sharing the collective wisdom of thousands of Muslim crypto traders and investors.

Nervos Network Technology

Nervos has a base network that consists of a maleitonic computation and consensus layer and a series of application layers. The first layer is Nervos’ CKB mainnet with Proof-of-Work (Pow) mining for security reasons. It works in tandem with the layer-2 procedures. Nervos CKB utilizes columns to store the state of a network (account balances and action), whereas Nervos’ layer-2 procedures function transactions and produce fresh conditions.

Nervos security layer-2 protocols functions by using the security provided by the base layer, but they execute transactions faster and at a lower rate.

A data type that suits a specific function can be made available via a particular routine. A convenience that allows for use case-specific features can be implemented via an executable operation.

Key features of Nervos network:

  • A layer-1 blockchain’s native asset must be a store of value.
  • Pushing scaling tasks towards the first level is preferable because layer-2 chains should be accessible and accessible. Designing for scalability at the base layer leads to decentralization and security compromises. Instead, layer-1 should complement and not compete with layer-2 solutions.
  • Proof-of-Work (PoW) is a smart Sybil-resistance method for layer-1 blockchains.
  • The layer-1 blockchain must provide a simplified model for the development of interactive protocols (compositional readability) and help the different layers communicate with one another (interoperability).
  • Storage systems ought to have the ability to register, track, and safeguard ownership of the resulting information. State sectors must aggressively direct resources to the implementation of sustainable storage practices that provide for continual uptake of rewards to miners amid varying quote requests.





Legitimacy Screening of Nervos Network

The Nervos Network was founded in 2018 by three experienced blockchain developers: Kevin Wang, Jan Xie, and Terry Tai.

Since its launch, Nervos Network has seen rapid adoption by developers and users alike, with over 100 projects built on top of the Nervos Common Knowledge Base (CKB) layer-1 protocol. The Nervos team is dedicated to building a decentralized future that empowers individuals and organizations to own their data and digital assets.

Nervos Network has raised a total of $128 million over multiple rounds of investment. Their most recent funding round commenced in January of 2021, and accepted $128 million in funding from a Wall Street secondary offering. Nervos Network is funded by 27 committee investors. Dragonfly Capital Partners and Evernew Capital are the newest investors.

This gives us the confidence to confirm that CKB has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.

Is Nervos project aligned with Islamic values?

Yes, Nervos crypto project does align with Islamic values as the protocol facilitates the creation of Decentralized Applications (DApps). It aims to increase scalability by introducing a proof of history (PoH) consensus along with the underlying proof of stake (PoS) consensus of the blockchain technology. There is nothing against Islam about such a technology. 


Financial Screening of Nervos:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Nervos: CKB is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.


CKB Token Screening for Shariah Compliance

Token Type: Native

Token Uses: Payments, Work

The Nervos cell currency is the “Common Knowledge Byte,” or CKByte for short. CKBytes entitle a token holder to occupy a portion of the total state storage of the Nervos blockchain.

The network of Nervos is stored in a number of “cell.” The change of cell content, as new transactions and smart contract calls, is created through cell destruction and cell creation, which means that content of the original cell is not automatically altered. Every trade in some way damages cells as well as creates brand-new ones. These new cells will be resold, and new data will be stored within them.

This cell system follows the UTXO model established by Bitcoin. When a cell is destroyed, it is marked as destroyed in the same way that Bitcoin’s UTXOs are marked as spent, even though it is not removed from the blockchain. Only once can a cell be destroyed, just as only an UTXO can be spent once.

The amount of CKBytes a user who previously released state storage would receive may vary based on the size of state (in bytes) their information occupied when it was released.

Nervos CKB comes with a special built-in contract called the NervosDAO. Users who deposit their holdings are eligible to receive a portion of the DAO’s secondary issuance (base issuance being the block rewards for PoW miners). CKB owners will use CKBs to store data on the CKB psychologically associating themselves to the data and do not take into account to possess breakdown of the data. As a consequence, they become resistant to the NervosDAO deposit limit in the well-being ETH.


This token has a utility that is permissable under Shariah so Nervos’ CKB token is considered halal.




Is Staking CKB Halal?       

The CWB is a store of value and can also be used as a means of payment on the platform. Nervos CKBytes can be staked in the Nervos DAO in order to passively earn more CKB coins. As far as we can see this reward system does not contain Riba, Gharar, or Maisir and therefore staking CKB is halal.



What Does The Muslim Crypto Community Think of CKB?           

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Nervos: CKB is a Halal digital asset based on its Shariah complaince screening.

Sharlife considers Nervos: CKB as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening. 

If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.          


Is Nervos Halal: Is CKB Crypto Coin Halal?

Yes, Nervos: CKB crypto coin is Halal as it is a public blockchain and collection of protocols that aim to overcome the scaling limits obstructing traditional networks including Bitcoin and Ethereum. This technology is not against Shariah so Muslims may invest, trade and stake CKB crypto coin.

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.


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