Chia Network (XCH) is a layer 1 blockchain that uses a custom-made programming language called Chialisp and a new consensus mechanism called proof-of-space-and-time (PoST). This combination enables the blockchain to consume less energy without affecting network security. Chia Network, unlike most other blockchains, is a public, for-profit, open-source enterprise that intends to be listed on the NYSE or NASDAQ. Its blockchain is made for business use, which is why Chia Network plans to have XCH on its balance sheet in case it gets listed.
Chia says that its blockchain is just as safe as Bitcoin's but uses only a small fraction of the energy because of its consensus mechanism. It was the first to use BLS Signatures and Verifiable Delay Function, and in 2019 it introduced its proof-of-time function. After launching the beta version of its blockchain in 2020, the main net went live in March 2021.
Chia Network (XCH) was founded in 2017 in Delaware by Bram Cohen, the creator of the well-known peer-to-peer file-sharing platform BitTorrent. The project is led by a group of experienced senior managers, including former NASDAQ CEO Gene Hoffman as chief operating officer (COO) and former Overstock.com CEO Mitch Edwards as chief financial officer (CFO).
Chia Network is also backed by a long list of well-known investors who focus on cryptocurrency. It raised $61 million in fundraising in May 2021, with the participation of prominent VCs including Andreessen Horowitz, Slow Ventures, Naval Ravikant, and Galaxy Digital, and many others.
Chia wants to resolve the issues that Proof of Stake (PoS) and Proof of Work (PoW) have with centralization and electricity use by using a new consensus mechanism called "Proof of Space and Time" (PoST). PoST seeks to use less energy without affecting the security of the network. This mechanism combines two separate proofs. Proofs of Space uses disc space that isn't being used and pays people who have empty space for "farming" new blocks. Proof of Time makes the network more secure and helps people know what time it is. By adding this Proof of Time, the attack vectors associated with Proof of Space are reduced. Chia Network also includes Chialisp, a new smart transaction programming language, and on-chain development ecosystem. The team says that Chialisp is both powerful and easy to audit. The project hopes that Chialisp will allow developers to build a wide range of network functionalities and services on Chia, such as cross-border payments and the issuance of financial assets like stablecoins.
Plotting: Proof of Space - Chia works on proving the space and time idea. The main part of this method is the proof of space, in which computers bet their storage space instead of their processing power. Operators, who are called "farmers," will "plot" about 100 GB of space on their hard drives. The Chia Network will then store these plots using numbers.
Farming: Proof of Time - Chia works on proving the space and time idea. The main part of this method is the proof of space, in which computers bet their storage space instead of their processing power. Operators, who are called "farmers," will "plot" about 100 GB of space on their hard drives. The Chia Network will then store these plots using numbers.
After then, the network will distribute a unique, random string of numbers to "farm" the blockchain, and the "plot" of space that contains all of these numbers will win the block.
The more space on your hard drive, the more random numbers you can store. This increases the likelihood of winning the next mining block.
The native token of Chia Network, XCH, will act as the primary incentive mechanism for the Nakamoto consensus. Like Bitcoin, XCH block rewards should ensure the economic security of the network by making sure that the interests of Chia "farmers" are in line with what's best for the protocol. Farmers get block rewards for doing Proof of Space and Time transactions for the network. These payments are made with XCH tokens, which are also used as transaction fees ("gas").
Chia tokens can be stored in multiple wallets, which makes it easier for people to use them. The project includes a wallet as part of its full-node software, which provides the maximum level of protection. Still, many wallets that are easy to use and set up have come out, such as light wallets. Chia has its own light wallet that can be found here. Third-party wallet programs such as Goby and Nucle are managed independently of Chia but remain open-source.
DATE NEWS/EVENTS IMPACT 07/05/2022 TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath -27% Decrease 06/09/2021 Chia Price sustained losses push Investors to sell Mining Hardware Tools -20% Decrease 14/05/2021 Huobi Global will list Chia Network (XCH) +50% Increase
Chia is doubling down on Bitcoin by adopting its core ideas and using the new technology. It also tries to enhance PoW-based blockchain with its new Nakamoto consensus. Chia Network is an eco-friendly platform because it doesn't validate transitions by using a lot of electricity or single-use hardware.
The protocol aims to create a global open-source system that helps businesses, institutions, corporations, and governments all over the world. It is also working to add liquidity pools to the system and lend XCH so that it can be used for commerce and trading.
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