- The reduced energy demands of the Chia Network make it a very attractive investment proposition to those who like low-energy blockchains such as Nano, EOS, and Cardano. Moreover, with an increased focus on the carbon footprint of mining, solutions like Chia offer great long-term prospects.
- As a decentralized blockchain, Chia can offer users improved security, in theory.
- The Chialisp programming language shows a truly innovative side to the Chia Network that will also help long-term investors see great potential profits.
- Funding, building, and supporting the blockchain through public and transparent means helps build trust with investors, while the open-source nature of the project is promising to developers.
- To help stabilize the coin price and drive adoption, Chia will burn its strategic reserve rather than cashing in on it.
What is Chia Network (XCH)?
Chia Network is a global project founded by Bram Cohen, who is also the founder of the BitTorrent network. The core idea is to build a superior blockchain that offers smart transactions that are decentralized, efficient, and secure and which offers a much better situation for the environment through a less energy-intensive design.
By creating Chialisp, an entirely new transaction programming language, the project is powerful, secure, and easy to audit. While it does run on a Proof of Work algorithm, like Bitcoin and Ethereum, Chia only utilizes unused disk space, making it something that can quietly run in the background rather than require multiple rigs and a large setup. In addition, through chia lending and software support, the Chia Network encourages external developers to get involved.
Where to buy XCH in the US and Europe?
Here at Coin Clarity, we only recommend trusted crypto exchanges that offer quality, security, and longevity to our readers. For that reason, we advise on using either of the following platforms:
- Huobi Global
How to buy Chia Network (XCH) on Gate.io
- Head to Gate.io
- Register an account using your:
- To trade with the XCH/USDT pairing, you should deposit some USDT (you may need to buy some) from an external wallet or crypto exchange. Some of the most popular options are:
- After making the USDT deposit, visit the trading pair here:
- Read and accept the risk warning
- Place your order
Now that you have your XCH, you can decide whether to hold it long-term or trade with it.
How Chia Network Works
Let’s expand a bit more on the Proof of Space and Time algorithm, which the Chia Network is utilizing. This is a cryptographic technique that allows unused hard drive space to be used for mining and storage. In addition, proof of Space and Proof of Time work together to ensure consistency on the blockchain. Proof of Space proves that you have unused hard disk space, and Proof of Time makes sure transactions are managed responsibly by allowing a small time period to pass between blocks.
Chia miners download some software that plants seeds in their unused space, and they become farmers. Then, when the blockchain needs a plot, the farmers are already ready to help, thanks to their disk space. Like most blockchains, the more space (mining power) a farmer offers to the network, the more chance they can win the block.
Chia Network (XCH) History
The developers behind Chia began their project back in August 2017 to improve global financial payment systems through the blockchain and smart transactions. Of course, many other cryptocurrency projects claim the same thing, so how was the approach different? Well, they developed an improved version of the PoW algorithm with the Proof of Space and Time, a new consensus algorithm that would surpass their rivals.
Led by Bram Cohen, one of the world’s leading network protocol engineers and the inventor of BitTorrent, they developed a new programming language, Chialisp, which would give them a huge advantage in creating a new digital currency and range of services. Quite quickly, the project was able to handle:
- Atomic swaps
- Authorized payees
- Recoverable wallets
- Multisig wallets
- Rate-limited wallets