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What Is Chia Network?

So, let’s take a closer look at what Chia Network is all about.

What Is Chia Network?

The Chia Network has been around since 2017. Its founders are Bram Cohen and Ryan Singer. Bram is also the person behind BitTorrent network. This is a way to download internet files. Chia Network runs its own open-source blockchain. Its headquarters are in San Francisco, USA.

What makes the Chia Network and its blockchain stand out, is its novel consensus concept. It noticed the shortcomings around PoS (Proof of Stake) and PoW (Proof of Work) mechanisms. For example, electricity consumption for PoW and centralization for PoS. Hence, it has its own mechanism, called “Proof of Space and Time” or PoST.  It’s the first new Nakamoto consensus algorithm since Bitcoin. This mechanism uses less energy. At the same time, it doesn’t compromise network security.

As the name states, it compromises two different proofs. As a result, it’s one of the most decentralized chains around. So, let’s take a look at these two separate proofs.

  • Proof of Space — This uses unused disk space. It also rewards owners of empty disk space for ‘farming’ new blocks. 
  • Proof of Time — This adds security and time predictability to the network. Adding this mechanism reduces the attack points associated with Proof of Space.

Chia also uses its own programming language, Chialisp. Since May 2021 its mainnet is up and running. Their native token is the $XCH token. Instead of mining this token, as in PoW, you farm it. As already mentioned, this uses empty hard disk space. In contrast to mining, it doesn’t need specific hardware or expensive electricity. You only need empty hard disk space. This makes it a much more decentralized option. The following video explains Chia Network.

What Makes Chia Network Different?

The Chia Network distinguishes itself in a few different ways. One way is with its unique PoST consensus mechanism. I explained this in the previous section. Another way is how you can farm the $XCH token, instead of mining it. The only thing this farming requires is empty hard disk space. Once you start farming, you receive the $XCH token as a reward.

The Chia software helps you to create plots. On these plots, you can allocate your unused disk space. Setting up the initial plotting is the only step that requires intensive resources. So, once you complete downloading the Chia node, plotting your drives starts. This all happens in the background. The farming can now start, and the installed software looks after this. It completes all tasks and looks after your rewards. It doesn’t need a lot of network bandwidth and doesn’t use a lot of resources.

Currently, Chia Network has over 86,000 nodes in over 150 countries. This makes it one of the most decentralized public chains in the world. However, Chia also offers privacy with its Virtual Private Blockchain. This gives you all the controls and privacy of a private chain. It also comes with the security and immutability of a public blockchain. The picture below shows how that works.

Source: Chia Network Virtual Private Blockchain

Chia Network Latest News

The Chia Network team doesn’t sit still. It keeps fulfilling its roadmap goals. Here’s to their roadmap. Their latest update is a new SaaS in the form of their Chia Cloud Services Platform. 

Chia caters to enterprises. Enterprises need, for instance, key signing and management workflows. Instead of having to outsource their digital asset management, Chia offers a solution. This lowers their costs and third-party risk. Hence, the Chia Cloud Services Platform. This is a service-oriented architecture-based abstraction. It provides API access to developers without needing to develop blockchain-level code. However, it gives access to all Chia’s blockchain potential. It offers, for example,

  • Escrowless trades.
  • Multi-sig vaults.
  • Or peer-to-peer trading. 

Most importantly, there’s no need to build specialized tech in Chialisp. It also accommodates secure RWA transactions. or tokenizing real-world assets is a sector that Chia is active in. For example,

  • Governments and enterprises use Chia’s Datalayer technology. This is a fraud resistant and decentralized data store. Among others, the World Bank uses it.
  • Chia tokenizes and sells verified carbon credits with the IFC. This is a member of the World Bank.
How Can You Get the $XCH Token?

The current $XCH price is $30.49, and it has a marketcap of $320 million. The total supply is 31.5 million and 10.5 million tokens circulate. Some CEXes where you can get $XCH are MECX, Gate.io, KuCoin, or OKX. 

The Chia Network is active in the and RWA sectors. These are two sectors that are catching the spotlights during this current bull run. Chia has a unique consensus mechanism, PoST. This only requires empty hard disk space. It’s resource friendly and doesn’t use a lot of network bandwidth. The team also keeps building and keeps meeting its roadmap goals.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.

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 6/10/2024

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