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?
Chia coin release date was May 3, 2021, and this is already one of the most famous currencies in the world. And the rate of 1 Chia coin on June 12, 2021, is $ 412.21.
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 Chia cryptocurrency uses Proof of Space and Time (PoST) — two-step authentication of blocks. In fact, it should be like this: the three “most significant stories” found by full nodes will be passed on to “farmers”, not miners. Thus, the “best proof of space” is found, after which the PoST servers begin validation and publish the verified block to the network. So large or individual miners with large capacities will lose their advantages, as is happening now with BTC. And the era of real, effective decentralization will come.
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
The proof-of-Work algorithm used by the main cryptocurrency in the world, we can say, is outdated. An important factor in the collapse of the BTC exchange rate in May 2021 was Elon Musk’s tweet that too much electricity is needed to mine these coins, which is extremely unecological. And with this statement, he indicated the popular opinion of the majority. Bitcoin mining is becoming more and more complex and is no longer justified.
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
It should be noted that if there are no differences in the consensus proof algorithm, in general, Chia is close to the Bitcoin blockchain. The project also implemented the Unspent Transaction Withdrawal (UTXO) transaction model. Chia’s bandwidth and speed are also the same as the world’s main digital currency. The project creators ‘ approach to the block reward format is also important: Chia blocks will always offer newly minted tokens as a reward for farmers.
What are other blockchains similar to Chia
Yes, at the moment, it can be argued that 2 projects are developing in parallel, which is quite similar to Chia. These are SpaceMint and Burstcoin. It cannot be said that they are identical since they use the Proof-of-space algorithm. And Chia uses the advanced Proof of Space and Time algorithm. And in this sense, Chia is more advantageous, since it is more secure.
Differences from Bitcoin
As we have already written, in fact, Chia is not much different from the Bitcoin blockchain — the main difference is in the more affordable and eco-friendly PoST algorithm, which requires fewer resources. And this is the only thing that the project team offers new, unlike 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?
This is one of the most important advantages that has made Chia so popular today. It literally solves the problem that Bitcoin and similar crypto projects have created, which have become too resource-intensive. And perhaps, when Elon Musk said that they will look for more eco-friendly projects, he was referring to the Chia coin that is expanding its scale. We think we’ll find out soon enough.
How to farm Chia Coin?
Chia coin mining is now a very attractive activity. Despite the fact that the price has collapsed since the beginning of trading, but now the Chia coin price USD is above $ 400. This is very impressive.
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.
The level of popularity of the project today is off-scale, especially considering how recently the Chia coin release date was. Moreover, the attention to Chia is focused not only on the part of small miners and traders, as well as market experts. The demand for PoST technology provides the project with large investments and guarantees almost 100% success. Even today, it is almost impossible to find hard drives on sale, and companies plan to produce special equipment that will be suitable directly for coin farming.
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.