Chia Network - a blockchain platform for creating and executing smart contracts, written in the Chialisp programming language.
Contents:
What is Chia Network?
According to the creators of the Chia Network, bitcoin mining is harmful to the environment and requires powerful computing resources that are inaccessible to most users. Chia aims to address these issues by leveraging some of the key features of PoW blockchains in tandem with new technology solutions.
Chiа Network (XCH) - a first-level blockchain that uses its own custom-designed programming language, called Chialisp, and a new consensus mechanism, called proof-of-of-time (PoST). The combination of these two factors allows the blockchain to consume less energy without compromising network security. Unlike most other blockchains, the platform is a public, open source, non-profit company that seeks to list on the NYSE or NASDAQ. Its blockchain is aimed at businesses, which is why Chia Network plans to include XCH on its balance sheet in the event of a listing.
Chia Network's first time verification feature was released in 2019, and the first blockchain beta was launched in 2020. It reached full functionality, including wallet functionality, transactions and smart contracts, with the mainnet launch in 2021.
Benefits of Chiа
Chia Network (XCH) improves proof-of-stake (PoS) and proof-of-work (PoW) by using a less energy-intensive consensus mechanism. The network achieves the Nakamoto consensus by combining proof-of-space (PoS) with proof-of-time (PoT), which function differently.
What are the advantages of the project:
| Special software |
With Proof-of-Space, the user confirms that there is free space on the computer's hard drive. Plotting requires a high-performance drive - it is used as a buffer for temporary storage of information. The minimum buffer is an SSD larger than 356.5 GB. |
| Proof-of-Time |
The Proof-of-Time algorithm ensures the frequency of block creation and increases the security of the blockchain. Proof-of-time is implemented by verifying nodes, the so-called time lords, using the checked delay function. This function takes a certain amount of time to calculate, but is very quickly verified. Verifiable latency minimizes power wastage and also eliminates the benefit of using multiple devices in parallel. |
| Programming language |
Chialisp combines key elements of the Ethereum and Solidity codebase with Bitcoin Core and Bitcoin's UTXO model. This approach allows transactions to be carried out in parallel rather than sequentially. Chialisp recognizes coin IDs, which can also verify their IDs. This enables clear self-addressing and eliminates the need for self-reproducing programs. |
According to the creators, the language is efficient, flexible and easily auditable. Chialisp is expected to allow developers to create a wide range of services on the Chia platform, including cross-border payments and the issuance of stablecoins. Atomic swaps, multisig wallets and colored coins are already available on the platform.
Tokenomics of XCH
The current supply of XCH is 22 million tokens. 21 million XCH have been tentatively withdrawn to fund the establishment and administration of Chia. According to a Chia Network (XCH) white paper, farming rewards follow this schedule:
- 64 chia will be created every 10 minutes for the first three years after launch;
- 32 chia will be created every 10 minutes four to six years after launch;
- 16 chia will be created every 10 minutes for seven to ninth years after launch;;
- 8 chia will be created every 10 minutes in ten to 12 years;
- 4 chia will be created every 10 minutes every year after year 12.
This means that the network itself controls the majority of XCH, and just 21 years after the launch of the main network, rewards will catch up with the size of the strategic reserve. In addition to the unique approach of combining an adapted proof-of-work consensus mechanism with proof-of-time, Chia Network (XCH) is managed by a traditional corporate structure. It eschews the crypto-native decentralized autonomous organization (DAO) model in favor of a traditional joint-stock company.
Chia Network intends to list the company's shares on the stock exchange, as it believes that this model aligns incentives better than other models. Thus, ownership of coins does not affect the governance of the Chia blockchain, which is a separate approach to the model of other public blockchains. Chia Network (XCH) is available on Huobi, Gate.io, Uniswap (V2), KuCoin and OKEx.
