Chia Network (XCH) is a layer 1 blockchain that uses its own custom-designed programming language called Chialisp and a unique consensus mechanism called proof-of-space-and-time (PoST). This combination allows the blockchain to use significantly less energy than other blockchains while maintaining high network security.
Chia Network aims to improve the international payment and financial structure by providing an enterprise-grade digital currency that can be used for various purposes. Some of the use cases that the network claims to support include asset tokenization, decentralized exchanges (DEX), decentralized finance (DeFi), and personal cross-border payments. Chia Network believes its platform can offer an efficient and cost-effective alternative to traditional payment systems.
XCH Features and Updates
Chia (XCH) is a relatively new cryptocurrency and blockchain platform, but there have been several notable features and updates since its launch.
The Chia platform is designed to support asset tokenization, allowing for creative digital assets to be tracked and traded on the blockchain.
Chia Network’s custom smart contract language, Chialisp, is the foundation of the ChiaLisp Virtual Machine, comparable to Ethereum’s Virtual Machine (EVM). Chialisp uses a coin set model similar to Bitcoin’s unspent transaction model to track the state of the blockchain and prevent double-spending. This coin set model differs from Ethereum’s account model and is designed to enhance security, reduce the maximum extractable value, and enable complete code auditing. In summary, Chialisp and its coin set model are a key component of Chia Network’s innovative approach to blockchain technology.
In the Chia Network blockchain, each XCH coin contains a hash of the previously mined coin’s ID, a puzzle hash, and an amount. These coins are created using Chialisp, the platform’s custom smart contract language, which utilizes hashes that are not reversible with current technology. This means it is virtually impossible for a hacker to analyze the blockchain and determine a coin’s type or view the code that created it. Chia Network believes this approach is superior to Ethereum’s model, where a smart contract’s source code can be viewed using a compiler, making it more vulnerable to attacks.
Who are the Founders of XCH Token?
Bram Cohen and Gene Hoffman founded the Chia Network and its native cryptocurrency XCH. Bram Cohen is the creator of the BitTorrent file-sharing protocol and is a well-known figure in the cryptocurrency and peer-to-peer technology communities. Gene Hoffman is a serial entrepreneur who has founded and led several technology companies over the course of his career. Cohen and Hoffman founded Chia Network in 2017 to create a more sustainable and environmentally friendly blockchain platform.
What Makes Chia Network Unique?
Novel Consensus Mechanism
Chia Network uses a novel consensus mechanism called proof-of-space-and-time (PoST), designed to be more energy efficient than traditional proof-of-work (PoW) mechanisms used by other cryptocurrencies like Bitcoin. PoST is also resistant to centralization, making it more secure.
Chia Network is designed to be more environmentally sustainable than other cryptocurrencies because it requires significantly less energy to operate. The network achieves this using PoST, which requires storage rather than computational power.
Strong Team and Backing
The Chia Network has a strong team with a proven track record in the tech industry. The company has attracted significant investment from top venture capital firms and individual investors.
Enterprise-grade Digital Currency
XCH is designed to be an enterprise-grade digital currency with use cases that include asset tokenization, DEX, DeFi, and personal cross-border payments. The Chia Network is also focused on enterprise adoption, which could make XCH more attractive to businesses and investors in the long run.
How Many XCH are There in Circulation?
According to the Chia Network’s official website, as of February 18th, 2023, there are approximately 26.3 million XCH tokens in circulation. There are 27,545,504 XCH in total supply, with a circulating supply of 6,545,504 XCH. As of the time of writing, XCH is currently trading at $43.92.
How is Chia Network Secured?
As earlier mentioned, The Chia Network is secured through a consensus algorithm called Proof of Space and Time (PoST). This algorithm was created by the founder of Chia, Bram Cohen, to address some of the drawbacks of traditional proof-of-work (PoW) and proof-of-stake (PoS) algorithms.
However, unlike PoW, where the puzzle’s difficulty is increased over time, the difficulty in Chia’s PoST algorithm is fixed. Once a plot is created, it can farm blocks indefinitely without requiring additional computational power or energy consumption.
Chia uses several additional security measures to prevent attacks or malicious behavior. These include a reputation system incentivizing honest behavior and penalties for bad actors, and an on-chain smart contract language that allows users to create customized contracts and secure transactions.
How can Crypto Investors use XCH Network?
XCH Network is a blockchain protocol that supports the development of decentralized applications and services. While crypto investors can use XCH Network in several ways, some common use cases include:
Staking: XCH Network allows users to earn rewards by staking their XCH tokens. By locking up their tokens for a certain period of time, users can participate in the network’s consensus process and earn a portion of the block rewards.
Trading: XCH tokens can be traded on several cryptocurrency exchanges, allowing investors to buy and sell them for other cryptocurrencies or fiat currencies.
Decentralized Finance (DeFi): XCH Network supports the development of decentralized financial applications, such as decentralized exchanges, lending platforms, and yield farming protocols. Investors can use these applications to trade, borrow, lend, and earn interest on their XCH tokens.
Payment: XCH Network can be used as a payment system, allowing investors to send and receive XCH tokens for goods and services.
Governance: XCH token holders can vote on network proposals and upgrades, giving them a say in the development and direction of the XCH Network.
Where Can You Buy Chia Network (XCH)?
Is XCH a good cryptocurrency?
Based on some expert’s analysis, XCH is expected to make a significant uptrend move this year. However, it’s paramount for investors always to avoid taking financial advice by reading an article.
Does XCH have a future?
From our projection, XCH will give a good return on investment in the next couple of years. It is important to note that reaching its last ATH might be too much to ask for at this present state of the crypto market.