What Is Chia(XCH)? Complete Guide & Review About Chia

What Is Chia(XCH)?

Chia Network (XCH) is a layer 1 blockchain that uses its own custom-designed programming language called Chialisp and a novel consensus mechanism called proof-of-space-and-time (PoST). The combination of these two allows the blockchain to use less energy without compromising network security.

In contrast to most other blockchains, Chia Coin Network is a public, for-profit, open source company that aspires to become listed on NYSE or NASDAQ. Its blockchain is aimed at enterprise use, which is why Network plans to have XCH on its balance sheet in case of a listing.

Chia Network first proof-of-time function was released in 2019, with the first beta version of its blockchain launching in 2020. The Network achieved full functionality, including wallet functionality, transactions and smart contracts, with its mainnet launch in 2021.

Chia is a cryptocurrency and blockchain smart transaction platform. It was designed from the ground up to make cryptocurrency easier to use — and harder to lose — than cash. The blockchain maintains the same level of security as Bitcoin’s, while using a fraction of the energy.

Important Points Table Of Chia

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Authentically secure, sustainable and compliant.

Secure

Chia is the most decentralized blockchain ever with approximately 200,000 nodes employing the first new Nakamoto Consensus since 2009. The Chialisp on chain programming environment is fully featured while being far more auditable and secure.

Compliant

They believes that in order to deliver on the promise of the next generation blockchains, they must be regulatory compliant. It is stated goal to become a public reporting company subject to the Securities Act of 1933. They native currency, XCH or chia, has never been sold by Network for money and they believe it will be regulated as a commodity by the CFTC.

Sustainable

With its innovative Proof Of Space and Time consensus, They uses 0.16% of the annual energy consumption of Bitcoin, and 0.36% of Ethereum. This is part of the Circular Drive Initiative that reduces e-waste through the secure reuse of storage, promoting the second use of hard drives for farming.

Chia System

Chia’s network​

There are different types of peer-to-peer (P2P) networks, such as BitTorrent, Bitcoin, and Chia. The Chia network is a blockchain that performs several major functions, including processing financial transactions, running programs written in Chialisp, and minting tokens from XCH (Chia’s base currency). The network is composed of hundreds of thousands of nodes, each of which stores a copy of the blockchain’s history, while also propagating new transactions across the network.

Coins and transactions​

Chia uses the coin set (UTXO) model to keep track of the network’s state. In this model, a coin is a first-class object. Each coin is locked with a Chialisp program called a puzzle, which is then hashed to create a puzzlehash. The coin’s ID is a hash of its parent coin’s ID, its puzzlehash, and its amount.

Each transaction in must spend at least one coin. In order to spend a coin, one must provide the original puzzle, as well as a valid solution, and an optional aggregated signature. Multiple coins can communicate with each other in the same transaction by using announcements.

Nodes​

Chia Coin nodes connect to a random subset of other nodes, called peers. The nodes periodically send and receive information from peers, which is then stored locally in a peer database. Each node broadcasts all new transactions and blocks that they see to their peers, which in turn relay this information to their peers, resulting in the information quickly being propagated throughout the network. When first starting up, nodes have to synchronize to the blockchain, by downloading the entire history of blocks and transactions.

Wallets​

Wallets are programs that allow users to interact with the blockchain, by signing and submitting transactions to full nodes. The company includes its official wallet with a typical installation. However, third-party wallets also exist.

Pools​

Pools allow farmers to smooth out their rewards. They pay out small rewards frequently, often daily. They tend to charge a small fee for their services. The Chia company doesn’t run its own pools. Many popular Chia pools also offer services for farming or mining other cryptocurrencies.