Chia XCH Price

Why Chia is Great?

Chia Network consensus

Chia Network operates using the Proof-of-Space-and-Time consensus algorithm, an encryption method in which users provide unused hard drive space to store information for some period of time. The hard disk space is used as a validator that validates transactions, while the owner is rewarded for providing it. In this case, the more space he provides, the more income he receives.

PoST was a solution against the negative environmental impact of the extremely energy-consuming PoW. Proof of Space and Time mining involves using a computer's disk space instead of processing power, like PoW.

The algorithm of Proof of Space involves creation of blocks with the size of 109 GB each on the hard drive and rafting of that space by users with sets of cryptographically encrypted numbers using special software. The more plots are created, the more Chia can be mined.

Proof of Space  (source: chia.net)

When transmitting call blockchains for the next block, each area is scanned by the system (the farm) to identify the closest hash to the task. This process is called farming and reduces the computing power required for mining.

Chia Features:

• Special Chialisp blockchain programming language was developed for XCH. It is easy to audit, powerful and secure.
• Chia is less energy-consuming thanks to special technologies.
• Miners are rewarded not by the amount of energy spent on the blockchain, but by how much space they provide on their hard drive for farming. Operation is based on the principle of Proof of Space and Time instead of Proof of Work.
• Users can transfer money to each other within the system.
• XCH is a liquid cryptocurrency and is easily convertible. Almost any cryptocurrency exchange works with Chia.

Chia Network History

The creator of the project is the American developer Bram Cohen. The man became famous as the founder of the BitTorrent network. In August 2017, he registered the company Chia Network, which to this day is engaged in the development of this project.

The main network of the project was launched in March 2021. Two months later, developers activated tools for transactions in Chia Network.

Advantages of Chia

Despite some similarities with Bitcoin, Chia has a number of advantages compared to this cryptocurrency, such as:

• big number of smart transactions and cryptographic tools like chargeback transactions (not available in bitcoin transactions), atomic swaps, recoverable wallets, multi-signature wallets, authorized recipients, rate-limited wallets and colored coins, full nodes, timelords;
• environmental friendliness and energy efficiency;
• more successful anti-fraud measures using decentralization of the system;
• Use of IPO (Initial Public Offering) instead of ICO;
• use of open source software in Chia distributed under Apache License.

Chia Token (XCH)

Chia (XCH) is a native token of the Chia Network. This cryptocurrency is necessary for rewarding the participants of the project. And it is in XCH that farmers are rewarded for providing free space on their hard drives for the needs of the network.

During the launch of the project, the developers issued 21 million tokens. The pre-mined cryptocurrency became the basis of the platform's development fund.

Here's how the cryptocurrency release schedule looks like:

It should be noted that Chia has no plans to conduct an ICO. According to Chief Operating Officer Gene Hoffman, the tokens are owned by the company, so they can only be used with proper shareholder oversight if the company proceeds with its plans for an open listing. Investors will be able to consider this company as a kind of exchange-traded fund (ETF) for its significant XCH assets.

How to Mine Chia

Mining Chia is significantly different from traditional cryptocurrency mining. To get started, you need to ensure that you have enough disk space.

Typically, Chia miners write their patterns to high-capacity, fast, consumer-class SSD drives. These SSDs will wear out quickly, and HDDs, while offering more storage space, are much slower. That's why miners are transferring filled templates to larger HDDs. Chia templates are slightly over 100 GB, but still require 350 GB for temporary use. So you need to carefully evaluate your initial costs, including SSD capacity, HDD capacity, and the cost of other components you will need if you are building your farm from scratch.

 DIY Chia Farming Rig  (source: Chia Network Github)  

Furthermore, you install special Chia farming software on your computer. The blockchain is allocated space on a hard drive or SSD. Cryptographically encrypted numbers will be stored there. The places where they are located are called rafts, and the process of their formation is called rafting. As the blockchain is formed, users check to see if there is a hash that matches the algorithm's solution.

When data is transferred between units, some time is required for this process. This increases security and reduces electricity consumption. Farming requires at least 2TB of storage on your computer, but 10TB is more preferable. Since recording is intensive, it is better to allocate SSD rather than HDD for Chia drive. Any operating system is suitable for work.

Summary

The project was very popular in 2021. Its users were attracted by the unusual way of mining coins, because mining became available without the use of large computing power.

As a result, there was a problem in Hong Kong caused by a shortage of HDDs and SSDs. As a result, these devices have increased in price by three times, as a result of increased demand.

However, the popularity of Chia gradually began to disappear. There was a lot of information hype surrounding this project, but problems associated with further development have arisen.

Q&A For Chia Cryptocurrency