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What is Chia Cryptocurrency?

BitForex Editor
May 11, 2021

It has been some eventful few weeks for Chia Network as it has been one of the largest decentralized blockchains in the last 14 days. The buzz around XCH, which is the digital currency of Chia Network Inc, has filled the internet. Justifiably, Chia has taken over most of the Crypto news in the last few days primarily because of its eco-friendly operations. Chia has taken time to look at the loopholes in Bitcoin and Ethereum networks and has set out to create a green platform that saves energy when transactions take place. Interestingly, Chia was founded by Bram Cohen, who has become an authority in the crypto space; the framework is designed to fill in the gap as an alternative for running financial transactions. The notice behind the development of Chia is to simplify payment and finance processes in the world today.

Green Money

Asides from the attribution of green to money, the Chia network takes this connotation to a whole new realm. Bitcoin and Ethereum networks use mining operations for each block they create. Furthermore, each block takes up a large chunk of energy on each network; although secure, the energy consumption is relatively high. Here is why Chia is referred to as green money.

Chia uses an XCH as a reward to Chia farmers, who are similar to Miners. Furthermore, through the use of the Unspent transaction Output model (UTXO), Chia simplifies the programming of coins on the network. This means that XCH coins are more flexible and can get around faster by simplifying this protocol.

For the first three years of Chia going into full operation, every successful farming process, there will be a reward of 2 XCH. This incentive tallies with the Nakamoto consensus with every milestone geared towards environmentally stable freedom in finances.

Another perk of green money is its ability to support colored coins, NFT, digital identity wallets, and other digital currencies available in the cryptocurrency world. As a brand looking to change the financial market landscape, Chia seeks to enhance the operations of other cryptocurrency networks to provide faster, safer, and more environmentally friendly blockchain operations.

What is Chialisp?

Chia network uses a smart coin and functional language for simplicity and security. It is a tool used to enhance a wide range of functionality and power across different blockchain networks. It is designed to accommodate different payment options such as global exchange, asset insurance, and bank payments. Chialisp allows users flexibility and the ability to customize their clearing arrangements.

Furthermore, Chialisp offers users optimum security to safeguard their funds from any unforeseen or accidental theft. Also, users can be rest assured that will not be any hack on their wallet or their transactions.

Chia Proof of Space and Time

This protocol is a deviation from the regular Proof of work that people are normally used to. The Proof of work is the consensus protocol that is used by Bitcoin and Ethereum networks. However, Chia intends to create a protocol that is first of its kind but, more importantly, that can enhance simplicity and flexibility when transactions are made.

Therefore, the Proof of space and time reduces unfairness and the centralization of the Bitcoin and Ethereum protocol.  Many people have castigated Bitcoin and Ethereum fork because of the centralized computing systems associated with the Proof of Work protocol. On the other hand, the Chia network uses a new system that allows for the variable of time to be added into the mix. The time factor is pulled through the variable delay function, which will intern secure the blockchain transactions. Therefore, the farmers do not need to expend so much computing energy to create plots. Farmers create plots on the hard drive through Cycles on the CPU and then use an energy conservation resource of the drive to operate.

The Farming Process

As earlier explained, farming is the alternative for mining when it comes to the Chia network. Since the farmers use free disk space to validate financial transactions on the blockchain, the transaction becomes a lot easier. There is an elimination of variables that may impede the security and speed of each transaction.

This means that while the farming process takes place, the computer can be used for other things. This means the name “Green Digital Money” comes to life.

It has been said that the rise of Chia will surpass that of Bitcoin and Ethereum. Through its simplification processes, there is a possibility that Chia will be the next big thing out of the Cryptocurrency market. There is no massive demand for SSDs and hard drives, with Alibaba and other e-commerce platforms going out of stock.

Chia Trading

As of the First day in May 2021, the Chia coin was made available across different trading platforms. Among the 21410000 XCH made available in total supply, the company controls 21000000 while the rest are minted.

The booming introduction of Chia to the market has taken most people by surprise. As of the 6th of May 2021, the process of XCH is $578.32, with Highs hitting $685.93 and the lows reaching $561.89.

Conclusion

Although Chia is currently down 14.57% according to the coin market cap, the 24-hour trading volume is $30,199,582. The rate at which people are trooping to the green digital currency is a thrill to see. It is still far-fetched to say that it can topple Bitcoin and Ethereum but so far, so good, XCH has started on the right foot.

Therefore, if you are looking to trade digital currency, try to read extensively before entering the market. Plus, BitForex is a reliable platform for trading XCH once you are ready to start trading the currency.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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