Nervos has requested that Least Authority perform a security audit of the Nervos Network, an open
source multi-asset, Proof of Work blockchain, featuring a novel consensus scheme called NC-Max.
Nervos is a decentralized application network consisting of a layered architecture, including the layer 1
protocol known as CKB (Common Knowledge Base), the foundational layer of the Nervos Network, in
addition to the layer 2 protocols and scaling solutions.

The following components were considered in scope:

1. Consensus
   ○ NC-Max (a variation of the Nakamoto consensus)
   ○ PoW hash function, Eaglesong
   ○ Block verification logic
2. Transaction
   ○ Token transfer
   ○ Transaction fee
3. Economic Model
   ○ New token issuance
   ○ NervosDAO
4. Smart Contract
   ○ CKB-VM
5. Communication
   ○ P2P protocol / implementation
   ○ Serialization / deserialization
   ○ Eclipse attacks
   ○ RPC implementation

Our final audit report was completed on October 18th, 2019.