Chia Network, which focuses on an energy efficient blockchain, launched its new cryptocurrency, Chia (XCH). Its goal is to make mining accessible to everyone and significantly less harmful to the environment.
A network with ecological objectives
Chia was founded in 2017 by the inventor of the BitTorrent network, Bram Cohen. Its primary function in the crypto space is as a blockchain and smart transaction platform with a twist.
The network aims to take an environmentally friendly approach to blockchain functionality while promoting consistent decentralization, efficiency, and security for its users.
This year is essential for the network to begin to fulfill its ecological ideals. In March, Chia launched its mainnet for “agriculture,” which is Chia’s analog and greener version of mining.
On May 3, the network reached another important milestone: allowed the possibility of transactions with “smart coins” (intelligent coins, in Spanish) with the launch of its green cryptocurrency, Chia (XCH), along with its Chialisp programming language.
Chia is offering new versions of old ideas as she implements “The first new Nakamoto consensus algorithm since Bitcoin in 2008”.
XCH and Chialisp
Chia Network created its native currency from the belief that:
“Cryptocurrency should be easier to use than cash, harder to lose, and almost impossible to steal.”
Practically, the green cryptocurrency was developed to reward farmers on the Chia blockchain.
The Chia protocol is an improved but less complicated use of the Bitcoin Unspent Transaction Exit (UTXO) system.
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This provides a larger capacity for the coins. As a farmer, one can earn 2 XCH per block during these first three years.
According to the network, in the days leading up to the launch of the Chia cryptocurrency, the network arrived as the:
“Largest and most decentralized blockchain by number of full nodes, typically exceeding 100,000 full nodes.”
The network operates with its new smart coin language called Chialisp. Unlike previous blockchains, everything on the Chia blockchain is a cryptocurrency.
The smart coin offers an attractive package of smart contracts and smart transaction capabilities all in one.
Through Chialisp, applications on the web can work for banking, payments, asset disbursement and exchanges. The main characteristics of Chialisp include:
Digital identity wallets
Limited wallet rate
Authorized beneficiary wallets
Recoverable coin purses
Crypto derivatives exchange ACDX is the first to launch a Bull Bear Strike Token (BBS) leveraged trading option for these new Chia Tokens (XCH).
Environment at stake
The crypto space never takes a day off. Things are constantly evolving and at a rapid pace.
Legacy networks in space now see problems stemming from how they always knew how to operate.
The main one is the environmental impact related to energy efficiency and single-use hardware products in the mining process.
Bitcoin’s current energy consumption is 95.45 TWh, while the annual CO2 impact is 45.34 metric tons. These numbers are comparable to those of major cities in the world, such as Hong Kong.
Recently it became known that Tesla had stopped payments in Bitcoin. Musk cited the cause of this development as the environmental costs of Bitcoin., that is, its high energy consumption.
He commented that Bitcoin would continue to be accepted once powered by renewable energy. Otherwise, the company you are looking for cryptocurrencies that trade with less than <1% of Bitcoin's transaction energy.
On the other hand, the Bitcoin mining operations of the Greenidge Power Plant, managed by Atlas Holdings, are raising serious environmental concerns about the amount of energy it consumes.
The proof-of-work (PoW) model does not seem to work for the environment. Some are trying to navigate that by migrating to a proof-of-stake (POS) model like Ripple and Cardano.
Others are advancing at an astronomical and unsustainable rate for climate change. That’s where Chia comes in.
Test of space and time
Chia can set the stage for a new wave of development changes within the crypto space with her new consensus protocol.
The Proof-of-Space-and-Time (proof of space and time, in Spanish) of the network is the first of its kind. Reduces inequality in agriculture (mining), energy inefficiency and addresses centralization of the traditional PoW protocol.
For Proof-of-Space-and-Time to work, it relies on a combination of storage space and time, a “verifiable delay function” (VDF), to deliver on its promises of safety and efficiency.
Bitcoin BTC Hash Rate Mine
According to Chia, those who farm on the blockchain will need to:
“Spend a few CPU cycles to create ‘patches’ on the hard drives, but then they will use the energy-efficient resource of disk space for years to come to participate in the consensus mechanism that verifies new blocks on the Chia blockchain.”
This idea has the potential to reduce the egregious electricity costs that traditional protocols get otherwise.
With the storage aspect of Proof-of-Space-and-Time, it would also allow farmers to validate transactions without single-use hardware.
Chia’s green developments are new to the blockchain and cryptocurrency space, though much needed.
It remains to be seen if their protocol can be implemented in the way they intend while attracting future farmers and developers.
The post Chia launches an energy efficient token How does it work? was first seen on BeInCrypto.