What is Chia Network (Chia)?
Chia Network (Chia) is a blockchain platform for creating and performing smart contracts written in the Chialisp programming language.
What problems is the Chia Network solves?
According to the creators of Chia Network, mining bitcoin is damaged by the environment and requires powerful computing resources inaccessible to most users (we analyzed in detail the environmental problem in exclusive material).
Chia seeks to solve these problems by involving some key parameters of Pow blockchains in tandem with new technological solutions.
What does the name “chia” mean?
Chia is positioned as “environmentally friendly” cryptocurrency, since in the process of its extraction energy -saving hard drives and effective solid -state drives are used.
Emphasizing its “green” character, the creators named the cryptocurrency in honor of Chia Belaya (Spanish Sage) – plants from Central America, which was the most important culture of the Aztecs. In terms of calcium, chia seeds surpass milk. In recent years, they have gained popularity among vegetarians in the United States, and the EU officially recognized Chia as a “promising type of food”.
Who and when created Chia?
The creator of Chia is an American programmer and founder of the Bittorrent network Bram Cohen. In August 2017, he registered the Chia Network company in San Francisco, which is developing a chia blockchain. The president of the company is the former head of Nasdaq Jin Hoffman, the financial director is the former head of Overstock Mitch Edwards.
Since March 2018, the company has attracted about $ 77 million financing through SAFE agreements . The last round of $ 61 million ended in May 2021. The company was supported by the venture funds of Andreessen Horowitz, Galaxy Investment Group, DCM Ventures, True Ventures, Richmond Global Ventures and others. The company’s assessment during the round of financing amounted to $ 500 million.
The launch of the Chia main network took place on March 19, 2021.
May 3, 2021 developers activated transactions on the network. At a number of exchanges, Chia Trades started.
How does Chia Network work?
Chia blockchain uses the mining method based on Proof-OF-SPACE (Proof of space) and Proof-OF-Time (Proof of time).
The concept was presented in September 2017 by Bram Cohen and other researchers in the document “Beyond Hellman’s Time-Memory Trad-offs with Applications to Proofs of Space”.
They proposed a mining process using a computer’s disk space, and not its computing power. With this approach, the probability of the production of the block is proportional to the sum of the allocated space, divided into the total capacity of the network. This method, according to the authors, is more sparing the environment than Proof-OF-Work, and more profitable economically.
The process of mining coins in Chia is called pharmacy, and users mining coins – farmers.
Farming consists of two stages: Plotting and Harvesting.
Using Proof-OF-Space, the user confirms that there is a free space on the hard drive of a computer. A high -performance drive is needed for Ploting – it is used as a buffer for temporary storage of information. The minimum buffer is SSD with a volume of more than 356.5 GB. It is enough to “sow” a section [raft] in size 108.8 GB. Paroting time of one site takes from 4 to 12 hours.
The Ploting process does not require Internet connection and consists of the following phases:
- seeding – generation of seven tables of cryptographic hashes and their preservation on a temporary disk;
- Calculation of the gradient [Backpropagation] hashe;
- Sorting and algorithmic compression of the hash in a temporary folder and the beginning of creating the final file raft;
- Completion of the creation of the raft file and transfer it to the disk plate space for further Harvesting.
During the creation of the next block, the system announces a call (task), and the farmer scans its site, finding a hash that is as close to the parameters of the task. The chances of getting a block depend on the share of the farmer in the total space of the network.
This process is similar to the lottery – a reward for the block (for three years after the launch of the blockchain it is 64 XCH), the first 32 farmers that provided a solution to https://gagarin.news/news/the-metaverse-welcomes-salvador-dali/ the cryptographic problem receive.
The algorithm for evidence of the time Proof-OF-Time provides the frequency of the creation of blocks and increases the security of the blockchain.
The proof of time is realized by the verification nodes, the so -called Time lords [Timelords], using the function of checked delay [Verifiable Delay Function, VDF]. This function requires a certain time to calculate it, but is very quickly checked. The checked delay minimizes the loss of electricity, and also excludes the possibility of obtaining advantages from parallel use of several devices.
There will probably be relatively few “time -time” time. The fastest finishes the first, and to complete the block and advance the chain forward, only one quick and honest timlord is required.
Chialisp programming language
Chia Network uses Chialisp programming language. The first version of Chialisp was published in 2019 and was highly appreciated by representatives of the Defi industry and developers.
Chialisp combines key elements of the Ethereum and Solidity code base with Bitcoin Core and UTXO Bitcoin model. This approach allows transactions in parallel, and not sequentially.
Chialisp recognizes ID coins, which can also confirm their ID. Thanks to this, clear self -degreation is possible and the need for self -reproducing programs disappears.
According to the creators, the language is effective, flexible and is easy to audit. It is expected that Chialispi will allow the developers to create a wide range of services on the Chia platform, including cross -border payments and the release of stablecoins. Atomic swaps, wallets with multi -signature and “color coins” [Colored Coins] are already available on the platform.
Chia token (xch)
Chia (XCH) – Chia Network Service Token, which uses the individualized UTXO Bitcoin model and is used for financial incentives for network participants.
The first three years, the Blok Award is 64 XCH for 32 farmers. Every three years, the award is reduced by half. Such a scheme operates four three -year periods, after which the halving stops.
In the first three years, farmers will generate about 3.4 million XCH per year, the next three years – half as much as and t. D.
By the end of the sixth year, after starting the main network on the hands of users, there will be 42% coins. It will take 21 years of pharmination so that the number of coins on the hands is equal to the number of tokens in the strategic reserve.
When starting the main network, the company created a strategic reserve (Prefarm) at 21 million xch. With the help of smart contracts, the Snesting program will be implemented.
In the future, the company plans to reach NYSE and NASDAQ exchanges. Shares will be used as ETF tied to the price of token.
The distribution of funds among investors and users will control the Managing Council. The community will not be notified of the sale of coins from a strategic reserve in 90 days. Employees and contractors of the company will not be able to receive payments in XCh tokens.
How Chia develops?
The development of the project entailed a number of problems:
- Deficiency: Back in April 2021, before the start of trading, the Chia farmers created a local shortage of HDD and SSD in China.
- Growth in equipment prices: in May 2021, the Taiwanese company Phison Electronics warned of the upcoming increase in SSD prices due to excitement around Chia production. In May of the same year, due to increased demand for hard drives from Chia farmers, prices for models with a large memory of American retailers increased by several hundred dollars.
- Restrictions on the sale and operation of equipment: in April 2021, the Chinese company Galax warned users that it would refuse to guarantee SSD service if they are used for Chia production. Then, several Chinese manufacturers of solid -state drives announced the production of specialized storage devices for cryptocurrency mining. The warranty period for them will be significantly less than usual. According to experts, the Chia pharmacy reduces the service life of SSD with a capacity of 512 GB from five years to two months.
By the end of 2021, the company intends to hold the primary public proposal (IPO), which meets the SEC requirements, but also does not exclude the merger with another company – Spac.