Chia Network (XCH) operates as a layer 1 blockchain utilizing a proprietary programming language named Chialisp, along with a groundbreaking consensus method called proof-of-space-and-time (PoST). This pairing enables the network to significantly reduce energy consumption while maintaining a secure system. Unlike many other blockchain platforms, Chia Network is a public, profit-driven, open-source company with ambitions to be listed on major stock exchanges like the NYSE or NASDAQ. It is primarily focused on enterprise applications, and as such, Chia Network intends to hold XCH on its balance sheet in anticipation of a public listing.
The first proof-of-time function by Chia Network was introduced in 2019, leading to the beta release of its blockchain in 2020. By the mainnet launch in 2021, Chia Network had reached full operational capacity, complete with wallet functionalities, transaction capabilities, and smart contract supports.
Who are the founders of Chia Network?
Chia Network (XCH) was founded in Delaware in 2017 by Bram Cohen, who is also known for creating the well-known peer-to-peer file sharing platform BitTorrent. The project is led by a veteran management team, featuring Gene Hoffman, the former CEO of NASDAQ, as the chief operating officer (COO), and Mitch Edwards, a former CEO of Overstock.com, as the chief financial officer (CFO).
In addition, Chia Network benefits from the backing of a prestigious group of venture capitalists focused on cryptocurrency. It successfully secured $61 million in funding in May 2021 with investments from leading firms such as Andreessen Horowitz, Slow Ventures, Naval Ravikant, Galaxy Digital, among others.
What makes Chia Network unique?
Chia Network (XCH) sets itself apart by enhancing the typical proof-of-stake (PoS) and proof-of-work (PoW) with a less energy-consuming consensus approach. This network reaches Nakamoto consensus through a combination of proof-of-space (PoS) and proof-of-time (PoT), each functioning in its own unique way.
In proof-of-space, miners are required to dedicate unused storage space on their hard drives. Here, miners install specialized software that allocates free disk space, which they then use to solve challenges, akin to the puzzle-solving process in proof-of-work (PoW). The software stores a set of cryptographic numbers on the disk, and when a block is created, a challenge number from the previous block is issued. Miners then scan their stored numbers to find a match close to the challenge number.
Conversely, proof-of-time attests to the passage of time using Verifiable Delay Functions, similar to how the Solana (SOL) blockchain operates. Timelords—nodes responsible for documenting time—verify that time is accurately recorded to solve proof-of-space challenges.
Additionally, Chia Network boasts its own programming language, Chialisp. This on-chain language is compatible with smart contracts, drawing from key elements of Ethereum (ETH), Solidity, and Bitcoin Core, while retaining Bitcoin's UTXO model. This allows transactions to be processed simultaneously rather than sequentially, making Chia Network a quicker and more energy-efficient blockchain compared to its competitors.
How many Chia Network (XCH) coins are in circulation?
The total supply of XCH currently stands at 22,582,025. Out of these, 21 million XCH were pre-farmed to finance the development and management of Chia. As outlined in Chia Network's whitepaper, farming rewards are structured as follows:
* 64 chia are minted every 10 minutes for the initial three years after launch
* 32 chia are created every 10 minutes during years four through six post-launch
* 16 chia are minted every 10 minutes from years seven to nine
* Eight chia are generated every 10 minutes in years ten to twelve
* Four chia are produced every 10 minutes annually after the twelfth year
This means that the network retains control over the majority of XCH, and it will take 21 years from the mainnet's launch for farming rewards to equal the strategic reserve.
How is the Chia Network secured?
Chia Network (XCH) employs an innovative blend of an adapted proof-of-work consensus mechanism with proof-of-time and is structured as a conventional corporation. Instead of adopting a decentralized autonomous organization (DAO) model typical in the crypto space, Chia Network operates as a traditional joint-stock company.
The company plans to list its shares on a stock exchange, believing this approach aligns incentives more effectively than other models. Consequently, holding coins does not influence the governance of the Chia blockchain, a strategy that differentiates it from other public blockchains.
Where can you buy Chia Network (XCH)?
You can purchase Chia Network (XCH) on platforms such as Huobi, Gate.io, Uniswap (V2), KuCoin, and OKEx.
