Chia Network: Cryptocurrency review

The appearance of the Chia Network cryptocurrency on the market has aroused great interest among the community. Cryptocurrency mining has become very expensive and inaccessible to ordinary users. The goal of the Chia Network project is to make mining accessible to anyone.  Energy-saving hard drives are at the heart of the extraction of “green bitcoin”.

What is and what is the essence of Chia Network

Features of the Chia Network coin blockchain – security and environmental friendliness. This is a blockchain based on the new PoSaT (Proof of Space and Time) algorithm. The essence of this algorithm is that free disk space is used for mining. This is an alternative to the previously used methods.

Thus, coin mining depends on the amount of hard disk space. After its launch, a massive purchase of hard drives and solid-state drives began.

The Chia token (XCH) can be obtained either through mining or bought on crypto exchanges. When launching the network, the developers left 21 million coins in reserve, which are supposed to be used for the development of the project.

In the Chia Network blockchain, cryptocurrency exchange operations, crypto wallets, transfer of funds with the possibility of its cancellation within a certain time are also available. To protect against hacker attacks, the technology of colored coins is used.

Ṣo Paulo, Brazil РApril 26, 2021: cell phone with Chia logo on hard disk. Chia is a decentralized storage network, which is also behind the BitTorrent point-to-point protocol.

Who launched and how the Chia Network works

The creator of the Chia Network blockchain is American programmer Bram Cohen, who is known as the developer of the famous Bit Torrent service. Cohen started working on a cryptocurrency project in 2017. In 2019, he published a Green Paper – a document describing the idea of the project with an emphasis on its environmental friendliness. The coin appeared on the cryptocurrency market the following year.

Bram Cohen managed to find a promising team, which immediately attracted the attention of investors to the project.

The PoSaT algorithm is the next stage in the development of the blockchain. Before that, there were only two algorithms: PoW (Proof of Work) and PoS (Proof of Stake). A significant disadvantage of PoW is the use of expensive equipment and a large amount of electricity. Therefore, currently only groups capable of producing coins on an industrial scale are engaged in mining.

The PoS algorithm is insufficiently decentralized, and a large number of coins are concentrated in the hands of a relatively small group of network users.

According to the developers, the Chia Network is free from these disadvantages. The purpose of its creation is to return the mining process, which does not require large expenses, to the computers of individual members of the crypto community.

The Chia blockchain is open source. And he has already appeared various forks, as Bitcoin once did.

Consequences of the launch of Chia Network

The obvious consequences of the launch of the coin are the rapidly appearing shortage of hard drives and the rise in prices for them. Perhaps in the near future, disk manufacturing companies will start producing special disks of various types for mining in order to meet the high demand.

The demand for discs has led not only to a sharp increase in the profits of manufacturing companies, but also to an increase in their shares on the stock market. The greatest demand for discs was observed in China.

Mining Chia Network

To start mining, it is enough to have a computer with 4 GB of RAM and large disks, at least 100 GB of disk space. It is better to have two hard drives, one of which is designed to store cryptocurrency.

A special program is used for mining, which can be downloaded for free from the developers’ website. When creating a private key, a mnemonic phrase of 24 words is generated. There is a possibility of cloud mining.

The ChiaLisp programming language has been developed specifically for the project.

Halving (a twofold reduction in remuneration to miners) of the XCH token should occur every three years. After 21 years, the number of coins in circulation should reach the reserved amount of 21 million. After that, the holding in the network will stop.

The possible profitability of mining can be calculated on the site calculator chiacalculator.com .

Where to buy and store Chia Network

The token is traded on some cryptocurrency exchanges, including OKEx. But the coin has not yet received wide distribution. For example, it is not on such a popular platform as Binance.

To store coins in the blockchain network, there is a multi-signature wallet.

Chia Network: forecast and prospects

The appearance of a new cryptocurrency in the beginning was quite successful. B. Cohen managed to get financing and bring the coin to the market, after which it quickly increased in price. IPO projects are expected in the near future.

After the launch of the project, its shortcomings were revealed. First of all, this is a sharp increase in the share of electronic disks (which wear out quickly) in waste, which casts doubt on the declared environmental friendliness of the project.

A lot of experts consider the project promising, in particular Michael Novogratz (a well-known trader and financier) and former Nasdaq exchange CEO Jim Hoffman speak positively about the further development of the coin. Large venture capital funds also invest in XCH.

But private investors have not shown much interest in the coin yet. After the initial takeoff, the price of the coin fell just as rapidly, but the Chia Network coin is not a SCAM.

XCH rate chart for all time

It is difficult to predict the future of this rather interesting project in the field of cryptocurrency.  Despite the fact that the hype around the token has decreased, but it is worth releasing a few top news, as it will be immediately remembered.

Published: 23 January, 2022