Chia Token (XCH) is garnering interest from the cryptocurrency community due to its unique Proof of Space Time (PoST) consensus mechanism. Unlike traditional blockchains, Chia Token relies on storage capacity to secure the network and validate transactions, resulting in efficiency and environmental friendliness.
In the following article from AZCoin, let’s delve into how Chia Token is revolutionizing the cryptocurrency landscape.
What is Chia Network (XCH)?
Chia Network is a brand new blockchain and smart transaction platform with easy-to-use, efficient and secure features. Founded in August 2017 by Bram Cohen, network protocol engineer and inventor of peer-to-peer file sharing system BitTorrent .
Chia token supports the creation and execution of smart contracts written in a custom programming language called Chialisp.
Chia’s blockchain relies on a new consensus mechanism called Proof-of-Space Time (PoST) to secure the system and reach consensus in verifying transactions.
Chia has a native token called XCH, which is used to reward those who participate in mining blocks.
Highlights of Chia Network (XCH)
Proof of Space Time
This is the algorithm that makes Chia network different from other blockchains. The algorithm helps miners mine blocks without using CPU or GPU power to calculate things like Proof of Work. This makes Chia branded as “Green Bitcoin”.
Decentralized consensus algorithms require Sybil resistance with a resource to be able to verify the encryption (which is not infinite). In previous blockchain systems, this resource was usually computing power or stake.
Proof of Space (PoS) is an alternative solution that uses storage capacity as a scarce resource instead of computing power or the number of tokens stacked.
For example, someone with 500GiB of storage has 5 “votes”, while someone with 100GiB of storage has 1 “vote”, where a vote refers to the chance of winning and validating a block to be added to the chain.
Proof of Space (PoT) ensures that block creation times are consistent in time between them and increases the overall security of the blockchain.
The Chia network combines these spatial and temporal proofs to form its consensus mechanism. In this system, users store data on their hard drives for a period of time and the chance of winning XCH is proportional to their allocated storage space.
Chia’s Proof of Space Time (PoST) mechanism does not require nodes to hold any tokens.
Chialisp
Chia Network also features a new programming language called Chialisp and a custom-built virtual machine called CLVM (Chialisp Virtual Machine – can compile and execute contracts written in Chialisp) similar to Solidity and EVM on Ethereum.
According to the Chia developer team, the language is powerful, easy to audit, and secure. Chialisp is an on-chain smart contract trading development environment that will unlock the security, transparency, and ease of use that cryptocurrency promises.
Mining
Mining blocks to receive XCH tokens on Chia network is extremely easy and user-friendly. You just need a computer with many hard drives, then go to the homepage to download the mining program (supports both MAC & Windows) and run them.
Chia Network Token (XCH) Information
Key Metrics XCH
- Token Name: XCH Token.
- Ticker: XCH.
- Blockchain: Split Network.
- Token Type: Utility, governance.
- Total Supply: 100,000,000 XCH.
Token Release Schedule
Over 21 million XCH tokens were pre-mined before the mainnet launch. These tokens are used by the management team for project development purposes.
Currently, 2 XCH tokens are mined per block and this number will be halved every 2 years.
Token Sale
Chain network is a Fair Launch project. Tokens are mined through miners.
Token Use Case
- Miner Rewards: Miners will receive XCH when participating in running nodes to mine blocks.
- Transaction fee: Used as transaction fee in the system.
And if you’re looking to trade the Chia token safely, you might want to check out the best crypto exchanges 2024.
Chia Network Project team, investors & Competitors
Project Team
Chia is being built by a great team and co-founders with impressive business backgrounds.
- Bram Cohen: Founder and CEO, creator of BitTorren, later acquired by Tron Foundation for $140 million.
- Ryan: Co-Founder and COO, one of the co-founders of the first exchange program in the US (TradHill), multi-signature security company (CryptoCorp),…
- Mitch Edwards: CFO and Advisor, formerly CEO of Overstock.com.
- Gene Hoffman: Chairman of the Board, former CEO of Nasdaq.
Investor
The project has raised a total of $16 million with participation from ventures such as Andreessen Horowitz and Greylock, Naval Ravikant, Breyer Capital, Collaborative Fund, IDEO Colab, a16z Crypto, True Ventures, Galaxy Digital, Cygni Capital, Greylock Partners, DCM, Metastable, StillMark Capital, and Kamal Ravikant.
The project recently raised an additional $5 million from Slow Ventures to build Defi applications in Chia.
Competitors
In the future, Chia network will develop into an ecosystem with many applications on it. Therefore, competition with other ecosystems is inevitable. Some of the newly emerging names include: Capser, Mina , ICP , etc.
Conclution
Chia Token offers an innovative and sustainable solution for the cryptocurrency industry while presenting enticing investment opportunities for those interested in blockchain technology.
With its strong growth potential and community support, Chia Token is set to make a significant impact and achieve breakthroughs in the future. Stay informed and updated on the latest news about Chia Token so you don’t miss any opportunities.
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
