Joining hands with CMB International to launch a US$50 million fund, what kind of chess is Nervos playing?


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The launch of the new fund means that Nervos has entered another stage of ecological growth, and the focus is shifting to user-oriented blockchain applications.

Written by: Dove

The ecological influence of blockchain and encrypted assets is spreading rapidly like a prairie fire. The growth of DeFi has rapidly expanded the scale of the blockchain ecosystem, and has actually brought about a change in the industry’s landing direction. Innovation and creativity are driving the development of the market like a storm, and more and more developers and entrepreneurs are also participating in it, and capital is accelerating to enter, with the intention of reshaping the operation of the traditional economic system.

Among traditional capital, China Merchants Bank (CMB) subsidiary China Merchants Bank International Capital Co., Ltd. (CMBI) (hereinafter referred to as “CMB International”) is a pioneer in entering the market relatively early and is the first to deploy high-quality blockchain projects. As early as July 2018, the Chinese star public chain project Nervos Network received investment from CMB International. On May 19th, Nervos Network also announced that it will join hands with CMB International to jointly launch a $50 million blockchain ecological fund “InNervation”. According to official information, the fund will complete the layout within three years, and practical application blockchain projects around the world will have the opportunity to obtain investment.

A low-key and uniquely discerning new investment predator

CMB International is a comprehensive, professional and integrated financial service organization based in Hong Kong, deeply rooted in the Mainland, and facing the world. As a wholly-owned subsidiary of China Merchants Bank Co., Ltd., CMB International and its subsidiaries rely on the advantages of the group’s domestic and foreign collaboration and linkage, adhering to the concept of China Merchants Bank to build a financial technology bank, and have conducted extensive investment and deployment in the financial technology field , Is committed to becoming a new technology-oriented investment bank, with a comprehensive layout of corporate financing, asset management, wealth management, stocks, structured financing and other business sectors.

Since the establishment of a professional investment team in the second half of 2015, CMB International has accurately grasped the development trend of the industry and followed the trend. The leading and participating well-known investment cases include Ningde Times New Energy, Yunda Express, Kangtai Bio, Didi Travel, Nuohe Zhiyuan , Bona Pictures, Music Element,,, Meituan Dianping and other high-quality assets, rank among the most powerful private equity investment institutions in China.

Before the Ningde era became the leader of lithium batteries and started the era of new energy power, CMB International, which was rarely reported in the past, had already low-keyed 1 billion yuan and 3 billion yuan in the A and B rounds of the Ningde era. According to the prospectus, before the listing of Ningde Times, CMB International Capital and the two funds managed by CMB III and CMB Dynamics held a total of approximately 143 million shares of Ningde Times, and they continued to reduce their holdings after their stock prices rose. Become one of the biggest beneficiaries of the Ningde era’s listing.

CMB International’s market acumen has also extended to the blockchain industry. In CMB International’s view, blockchain technology may fundamentally subvert the inherent logic, operation mode and business scope of traditional finance, or will reconstruct the Internet The key underlying infrastructure of finance and the entire financial industry is an innovative technology that cannot be ignored. Thus began the in-depth layout of the core links of the blockchain, and Nervos Network is the first bridgehead of CMB International to link the blockchain field.

A solid foundation of the next-generation star public chain

In the field of the underlying infrastructure of the blockchain, Ethereum is undoubtedly the most popular. However, the current Ethereum has not solved the problems of transaction throughput, high fees, delays, etc., and ETH2.0 is still halfway through the formal entry into force. Many public chains have emerged in the market to solve such stubborn diseases. In general, Nervos Network is currently one of the public chains with relatively good performance and solid technology.

Nervos Network is an open source public chain ecology, including a set of mutually compatible layered protocols with blockchain technology as the core to solve the dilemma of blockchain scalability. Nervos CKB (Common Knowledge Base) is the underlying public chain based on the PoW consensus mechanism in Nervos Network. While allowing any encrypted asset to obtain security, stability, and permissionlessness, it can support smart contracts and the second-layer expansion plan, and through the encrypted economic design of “value storage”, the native token CKBytes captures the value of the entire network.

Nervos’ vision is to become the infrastructure of the encrypted economy, through the mutual cooperation, mutual promotion, and mutual protection of many forms of blockchain, and weave together an efficient and reliable digital economy network. In Nervos’s view, the future of the digital economy will be the coexistence of public chains, permission chains, and centralized systems, and transfer assets and call smart contracts between independent systems through interoperability.

As a result, Nervos will also launch the first cross-chain protocol Force Bridge at the end of 2020. After achieving seamless cross-chain transactions between CKB and Ethereum and providing native token support for ETH and all ERC-20 tokens, Force Bridge also announced in April this year that it will support new chains other than Ethereum. In addition, Force Bridge is also studying the Bitcoin cross-chain bridge, as well as the cross-chain bridges of TRON, EOS and Polkadot, which are expected to be integrated by the end of the second quarter of 2021.

In the eyes of most people in the industry, Nervos is one of the few domestic public chains that focus on consolidating technical foundations, and they are indeed practicing. Nervos has never made any compromises on the construction of infrastructure, which is one of the reasons why CMB International is strongly optimistic about it and has in-depth investment cooperation. And its deeper perfection of development tools also laid the foundation for the next stage of shifting to user-oriented applications. In the process of completing this stage, the InNervation blockchain ecological fund jointly launched with CMB International will become an indispensable part.

The catalyst for the next new development stage of the blockchain

Nervos and CMB International have devoted a lot of hard work to InNervation, not only the capital investment of up to 50 million US dollars, but also the technical support and tool kit assistance of Nervos for future investment projects, thereby completing the larger dApp ecosystem for Nervos Expansion, and thus promote the development of blockchain and encrypted asset ecosystem.

In order to realize Nervos’ vision, this US$50 million fund will be jointly managed by Nervos and CMB International. The investment focus will be on practical application projects, including dApp, DeFi protocol, distributed accounting platform, NFT market, etc. CMB International will help and strengthen Nervos’ ecosystem construction through InNervation, and play an active role in the investment decision-making of the fund through its long-term investment acumen.

According to official information, the InNervation Fund invests in projects in unlimited areas, focusing on projects and startups that plan to include the Nervos blockchain in its long-term product roadmap. In the early and growth stages, projects based on blockchain technology and user-oriented products will have the opportunity to obtain an initial investment of 200,000 to 2 million US dollars to support their development in Nervos and the larger blockchain ecosystem .

Nervos has close to demanding pursuits for its technology and development, and its chief architect Jan Xie is also a former member of the core R&D team of Ethereum. In the announced technology roadmap for 2021, it was stated that Nervos’ long-term goal is to complete all the design and implementation of the Nervos protocol stack by 2024, and conduct the first hard fork of CKB this year, including the upgrade proposed by the Nervos RFC , And release the basic light client protocol version at the same time.

In terms of Layer 2, Nervos will continue to work on the development of the CKB-based Layer 2 Rollup framework, the chain-based Layer 2 protocol, and the establishment of a small, usable payment channel network on the mainnet. Nervos has also launched xUDT with strong scalability, and continues to improve existing tools, providing DApp development kit Tippy and other new tools. In terms of interoperability 2.0, Nervos will have further development in cross-chain framework, DEX (Gliaswap) and other aspects.

In addition to financial support, Nervos will also provide more technical support for the developers and development teams of the invested projects. Nervos exclusive Layer 2 toolkits such as the compatibility layer Polyjuice of DEX and EVM, the license-free Layer 2 framework Godwoken and the cross-chain bridge Force Bridge will all have the opportunity to be used in the project.

Through the complete support of funds and technology, infrastructure projects and developer tools can be more easily built on Nervos. It can be said that Nervos’s ambition is not just a single public chain ecology, but hopes to build on this basis. Cultivate more next-generation protocols that will make real changes to the blockchain world.

Summary and outlook

The new fund launched by Nervos and CMB International marks the beginning of the next phase of Nervos’ growth and shifts its focus to user-oriented applications. InNervation will assume the important task of incubating and cultivating the next generation of application protocols, adding new driving forces to the real blockchain ecological development.

But this is only the first step in realizing its vision. In Nervos’s view, there is still much that can be done in the future. Only by holding continuous efforts can we bridge the gap between traditional finance and the encrypted digital world at a deeper level, and bring more possibilities for the development of blockchain ecology.

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