Nervos uses a Proof-of-Work (PoW) consensus algorithm called NC-MAX, based on Bitcoin’s Nakamoto consensus. The proprietary consensus mechanism offers exemplary levels of security and decentralization while using network bandwidth most efficiently. The Nervos consensus algorithm builds on Bitcoin’s consensus to offer better block propagation, throughput, and resistance to efforts of selfish mining. By opting for PoW over Proof-of-Stake (PoS) consensus, Nervos also overcomes potential challenges such as attempts of monopolization in the future, superior security, and deterministic rewards for network nodes. Unlike Bitcoin’s PoW consensus, however, the Nervos Network’s NC-MAX consensus mechanism offers higher throughput and lower confirmation times and leverages layer-2 solutions to increase the ecosystem’s TPS exponentially. The layer-1 Nervos network offers a transaction processing speed ten times faster than Ethereum.