What Is Chia Cryptocurrency? How Does Chia Coin Work?

Chia coin is a new cryptocurrency 🔥 that maintains the creation and execution of smart contracts, uses an innovative algorithm “proofs of space and time”. ⚡ Also Chia Cryptocurrency avoids some of Bitcoin’s problems. 👇 Here’s what you need to know about Chia Coin.

What Is the Chia Cryptocurrency?

The attention focused on the Chia project today is due to the hype among miners. It all started in China, where the mass purchase of SSD and HDD drives for its production began. But the project hasn’t even hit the market yet, has it? Why do many experts already rate it as a promising investment for both traders and miners? Let’s figure it out.

The project has gained popularity only now, but it was announced in 2017. Green-paper, explaining the environmental friendliness of the process of mining the Chia cryptocurrency, was published in July 2020.

The first message from the creator in major specialized media appeared in November 2017. Then Bram Cohen said that with the help of the Chia Network, the problems of centralization of virtual currencies will be solved, Chia will be more reliable, eco-friendly and secure in the context of mining, and will also make transactions faster and cheaper by solving the problem of centralization.

How does Chia Coin Work?

The project’s FAQ states that the rewards for mining through Proof of Space are proportionally related to the amount of space a user occupies on the Network.

At the same time, in 2017, Cohen said that he had assembled a team and enough funds to implement his ambitious idea. And today, in 2021, we see that he was apparently serious.

Chia has attracted an incredibly huge amount of attention in recent months. Markets around the world are running out of token disks, and the information field is filling up with news about this blockchain. Let’s see what attracts miners and investors to the currency, as well as what risks it can carry.

  • Low Chia coin mining costs

Free space on computer hard drives or flashcards will be used to mine Chia coins. And the amount of energy required to maintain them is much less.

  • SSD and HDD manufacturers are interested in popularizing the project.

They understand that the more popular the cryptocurrency is, the higher the price of their equipment, which is necessary for its production, can be.

Even today, huge amounts of money are being invested in it.

  • The benefits of the project.

PoST is characterized by the word “eco-friendly”. It should be understood that the Chia Network project is a pioneer in the field of Proof of Work alternative consensus, Proof of Space and Time. The blockchain and smart transaction platform implemented by Chia is less energy-intensive. This is one of the keys to understanding its popularity.

  • The new Chialisp programming language.

Now you know, what is the programming language of Сhia coin. And even today, it is defined by three adjectives: safe, powerful, and easy to audit.

  • Support from major investors and prominent figures of the crypto world.

And the founder of Chia is the famous BitTorrent creator Bram Cohen.

  • Limited number of coins.

Like Bitcoin, Chia has a limited issue of 21 thousand coins. This is one of the reasons for the growth of the value of coins. A shortage always leads to an increase in the price.

But everything is not only positive. Let’s look at potential or existing challenges.

  • Rising prices and shortages. Right now

Jiahe Jinwei, one of the world’s largest manufacturers of SSD and HDD cards, has already sold out the available products.

  • Resale of failed cards

Another emerging problem is the rapid failure, wear and tear of existing disks that are not designed for mining cryptocurrencies in general. In this regard, it is possible that the market will be filled with used SSDs that will not cope with the task. So be careful with this type of chia coin scam.

The Chia Network’s Proof of Space and Time (PoST) Algorithm

Chia uses a different algorithm from the usual ones. Proof of Space is a cryptographic method that shows that the miner allocates unused space on the hard disk to store information for some time. To be used as a consensus method, Proof of Space must be tied to Proof of Time, which in turn ensures that the block time has time consistency between them and increases the overall security of the blockchain.

The Proof-of-Space-and-Time model uses storage space to store a set of cryptographic numbers — “graphs”, or” rafts”: the blockchain sends a request for the next block, and farmers scan their plots in search of the hash closest to the task.

Blockchain characteristics and performance

What are other blockchains similar to Chia

Differences from Bitcoin

Their performance is comparable, Chia has nothing to do with smart contracts or other new features that other crypto projects have offered.

Can the Chia Network Reduce the Environmental Cost of Cryptocurrencies?

How to farm Chia Coin?

And you don’t need a very powerful PC to farm XCH. According to the official minimum requirements, the computer must have a quad-core processor, two gigabytes of RAM, and an SSD drive with at least 360 GB of free space. And the Chia software. Ideally, you need two hard drives: one fast and roomy for temporary storage, and another, larger capacity, for storing the extracted areas.

Naturally, in this case, the more, the better. Those who have tried to mine altcoin with a system close to the minimum requirements say that according to preliminary calculations, it can take up to several years to farm. On a special Chia mining calculator, you can calculate how much it will take to mine coins on your system.

Conclusion

But will Chia become Bitcoin’s main competitor? It is difficult to say because, in addition to more environmentally friendly mining, the project does not offer other innovative solutions. We can say only one thing: the project has every chance to gain a foothold in the crypto sphere, and the Chia coin will significantly increase in price.

And the last question that is probably spinning in your head: how to buy Chia coin? To date, not all exchanges offer the opportunity to buy or exchange this eco-friendly token. You can do this on OKEx, Gate.io, MXC.COM and DigiFinex. But most likely, the coin will soon appear on all major exchanges, including Godex.io.

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