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Summary of Chia Network (XCH)
Key Points
- Chia Network is a layer 1 blockchain using Chialisp programming language and proof-of-space-and-time (PoST) consensus mechanism.
- Founded in 2017 by Bram Cohen, with experienced senior management team.
- Raised $61 million in funding in May 2021 from leading VCs.
- Unique consensus mechanism combines proof-of-space and proof-of-time.
- Own programming language, Chialisp, is smart contract-compatible.
- Current supply of XCH is 22,582,025.
- Farming rewards follow a scheduled reduction in creation rate.
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About Chia: Empowering a Sustainable Future
Introducing Chia Network (XCH): A Revolutionary Blockchain Ecosystem
Chia Network (XCH) is a pioneering layer 1 blockchain that leverages its proprietary programming language, Chialisp, and a novel consensus mechanism known as proof-of-space-and-time (PoST). This innovative combination enables the blockchain to achieve a remarkable reduction in energy consumption without compromising network security. Notably, Chia Network diverges from its peers as a public, for-profit, open-source entity that aspires to list on prominent exchanges such as the NYSE or NASDAQ. Its blockchain is specifically designed with enterprise use cases in mind, which is why Chia Network plans to hold XCH on its balance sheet in the event of a listing.
In 2019, Chia Network unveiled its pioneering proof-of-time function, marking a significant milestone. The following year, the company launched the beta version of its blockchain, paving the way for further innovation. Finally, in 2021, Chia Network achieved full operational capability, complete with wallet functionality, seamless transactions, and robust smart contracts, upon the successful launch of its mainnet.
The Visionary Founders Behind Chia Network
Chia Network (XCH), founded in 2017 by Bram Cohen, the visionary behind the pioneering peer-to-peer file sharing platform BitTorrent, is headquartered in Delaware. The project is spearheaded by a seasoned senior management team, comprising esteemed professionals, including Gene Hoffman, former CEO of NASDAQ, who serves as Chief Operating Officer (COO), and Mitch Edwards, former CEO of Overstock.com, who assumes the role of Chief Financial Officer (CFO).
Notably, the Chia Network boasts a prestigious roster of cryptocurrency-focused venture capitalists as its backers. In May 2021, it successfully secured $61 million in funding, with prominent VCs such as Andreessen Horowitz, Slow Ventures, Naval Ravikant, Galaxy Digital, and others participating in the round.
Unveiling the Unparalleled Chia Network: A Revolutionary Approach
Chia Network (XCH) revolutionizes the consensus landscape by introducing a novel approach that surpasses the limitations of traditional proof-of-stake (PoS) and proof-of-work (PoW) mechanisms. By harnessing the power of a hybrid consensus algorithm, the network achieves Nakamoto consensus through the innovative combination of proof-of-space (PoS) and proof-of-time (PoT), each functioning in distinct yet complementary ways.
Proof-of-space necessitates that miners maintain unused storage capacity on their hard disk drives. In this paradigm, miners install specialized software that allocates free space, which is subsequently utilized to solve a challenge – akin to puzzle-solving in proof-of-work (PoW). The software stores a collection of cryptographic numbers on the miner’s disk, and upon block creation, a challenge number from the previous block is retrieved. Miners then scan their numbers to determine if they possess a number proximal to the challenge number that is required.
On the other hand, proof-of-time leverages Verifiable Delay Functions to attest to the passage of time, akin to the Solana (SOL) blockchain paradigm. The Timelords – designated nodes responsible for chronicling time – guarantee the accurate documentation of time, thereby facilitating the resolution of proof-of-space functions.
In addition, the Chia Network boasts its own proprietary programming language, Chialisp, which serves as an on-chain language that is fully compatible with smart contracts. By incorporating the most crucial components of Ethereum (ETH), Solidity, and Bitcoin Core, while maintaining Bitcoin’s UTXO model, Chialisp enables the simultaneous processing of transactions, thereby rendering the Chia Network a faster and more energy-efficient blockchain compared to its competitors.
The Circulating Supply of Chia Network (XCH) Coins: An Overview
The current circulating supply of XCH stands at 22,582,025. Notably, 21 million XCH were pre-allocated to facilitate the development and administration of Chia. As outlined in the Chia Network (XCH) whitepaper, the farming rewards are structured according to the following schedule:
- Every 10 minutes, 64 chia will be generated during the initial three years following the launch.
- In years four through six, the creation rate will decrease to 32 chia every 10 minutes.
- During years seven through nine, the generation rate will further decrease to 16 chia every 10 minutes.
- In years ten through 12, the creation rate will slow down to eight chia every 10 minutes.
- From year 12 onwards, the generation rate will stabilize at four chia every 10 minutes.
In essence, the network itself holds the majority of XCH, and merely 21 years after the mainnet launch, the farming rewards will converge with the size of the strategic reserve.
The Chia Network’s Robust Security Mechanisms
Beyond its innovative approach to consensus mechanisms, which combines an adapted proof-of-work system with proof-of-time, Chia Network (XCH) distinguishes itself through its governance structure. Notably, it deviates from the decentralized autonomous organization (DAO) model, characteristic of many crypto-native projects, and instead adopts a traditional corporate framework, operating as a joint-stock corporation.
Chia Network plans to list its equity on a stock exchange, as it believes this model optimally aligns incentives. Consequently, coin ownership has no bearing on the governance of the Chia blockchain, a distinctive approach that diverges from the models employed by other public blockchains.
Acquiring Chia Network (XCH): A Comprehensive Guide to Exchanges and Marketplaces
The Chia Network (XCH) has successfully listed on prominent cryptocurrency exchanges, including Huobi, Gate.io, Uniswap (V2), KuCoin, and OKEx.
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