Chia (XCH)
Chia (XCH) is a cryptocurrency and blockchain technology developed by Chia Network Inc., a company based in California. Founded in 2017 by Bram Cohen, who also created BitTorrent, Chia offers a unique approach to cryptocurrency mining through its proof of space and time model. This method contrasts with the energy-intensive proof-of-work model used by Bitcoin and Ethereum. By utilizing storage media like hard disk drives and solid-state drives, Chia provides an eco-friendly mining alternative that often requires no additional cost for users.
| Ticker | XCH |
| Category | Smart Contract Platform |
| Website | https://www.chia.net/ |
| @chia_project | |
| https://www.reddit.com/r/chia/ |
Overview
Chia is a pioneering cryptocurrency that uses pre-stored data files, known as plots, created and stored by users. This efficient method requires minimal resources to verify proof of space and time within these plots, allowing Chia to operate swiftly and with minimal environmental impact. Chia Network’s goal is to establish a decentralized and open-source blockchain network that supports payment settlements using its native cryptocurrency, Chia (XCH). The network aims to enhance global payment and financial infrastructures, offering solutions for digital currency. Chia Network envisions various applications, including asset tokenization, decentralized exchanges (DEXs), decentralized finance (DeFi), and efficient cross-border payments.
Technology
Chia Network’s Proof of Space and Time (PoST) is the first Nakamoto consensus algorithm introduced since Proof of Work, with significantly lower energy consumption. This algorithm uses surplus hard drive space to validate resource allocation within the network. Chia’s mainnet launched on March 19, 2021, and its ecosystem is continuously evolving, with primitives available for Chia Asset Tokens (CATs), Non-Fungible Tokens (NFTs), Offers, and Decentralized Identifiers (DIDs).
In the Proof of Space mechanism, users, known as farmers, demonstrate their allocation of unused hard drive space, while Proof of Time enhances the blockchain’s security against attacks. Chia's consensus model is designed to offer robust security, making it resilient to most potential threats. Compared to proof-of-work blockchains, Chia’s approach is more energy-efficient and inclusive, providing similar security levels and avoiding the centralization issues associated with proof-of-stake systems.
Chialisp
Chialisp is the smart coin language developed by Chia Network, based on the functional language Lisp. Within the Chia ecosystem, each element is represented as a coin, combining smart contract and transaction capabilities in one package. Chialisp is designed for security and simplicity while offering powerful functionality. It supports payment and financial application development on the Chia Network blockchain. Chia Network also provides software support and lending facilities for developers and enterprise users.
Chia Asset Token
Chia Asset Tokens (CATs) are fungible tokens that can be issued on the Chia blockchain. The CAT puzzle ensures that the supply of a specific CAT remains constant unless issuance rules are followed, enforced through a Chialisp program called Token and Asset Issuance Limitations (TAIL). The ownership of the coin is determined by an inner puzzle, which wraps the standard transaction to facilitate sending CATs to Chia wallet addresses.
Colored Coin
Colored coins on the Chia Network are powerful smart transactions used for issuing alternate coins, assets, and stable coins. They support protocols similar to Omni on Bitcoin and ERC-20 on Ethereum. Chia’s colored coins offer a unique feature called "offer," allowing users to create and distribute unfinished transactions. This feature enables the creation and transfer of colored coins, which can be completed by anyone on their end. For stable coin issuers, colored coin offers provide a method to create applications that allow end users to utilize stable coins and pay transaction fees seamlessly without realizing these actions occur on the Chia blockchain.
Farming
In the Chia Network, mining is referred to as farming. Farmers, who serve as miners, use unused storage space on devices like laptops, desktops, or corporate networks. In exchange for securing the network, they receive Chia rewards. To farm, users employ Chia node software to allocate unused storage space for plot creation. The software tracks rewards earned through farming.
According to the Chia Network whitepaper, farming rewards are distributed as follows: in the first three years, 64 chia are created every 10 minutes; in years four through six, 32 chia are created every 10 minutes; in years seven through nine, 16 chia are created every 10 minutes; in years ten through twelve, eight chia are created every 10 minutes; from year twelve onward, four chia are created every 10 minutes. This distribution schedule suggests the network controls a significant portion of XCH initially, with farming rewards expected to align with the strategic reserve size within 21 years from the mainnet launch.
Plotting
Plotting involves generating and storing unique cryptographic data, known as plots, on a user’s storage device. These plots provide proof to the network of data storage and contribute to Chia’s Proof of Space and Time consensus.
Plotting is similar to setting up a Chia farm, requiring significant computational power for a one-time operation. During plotting, the user’s CPU, RAM, and storage devices are heavily utilized. However, once the plot is created and stored, the farming process becomes much less resource-intensive, requiring only occasional disk input/output (I/O) operations to verify and submit proofs of space in response to network challenges.
The requirements for plotting include adequate computational power, sufficient RAM, and ample storage capacity. Hardware needs may vary based on plot size, desired plotting speed, and user preferences.