The Chia network is a cryptocurrency (XCH) that works in a rather unique manner as compared to the other cryptocurrencies that are out in the market.
The founder of the Chia network Bram Cohen is well known for being the author of BitTorrent protocol which is being used by millions all around the world – comprising of an online library of audio, video, and text files.
The goal of the Chia network is to experiment and provide new technologies within the cryptocurrencies at making them more user-friendly and also energy efficient. In order to achieve this goal, Bram Cohen and his developer team came up with “proof of space” rather than the traditional proof of stake or proof of work.
What is Proof of Space?
Unlike traditional ways to operate cryptocurrencies, proof of space has three major components that include the following, allowing it to operate in a user-friendly and energy-efficient manner.
Plotting comprises a simple step in which disk space within the computer is used for storing a big file of about 100GB or more. This helps with the creation of correct proofs that are used to demonstrate an actual amount of data is being downloaded thus making the user a true participant of the network.
Plotting is the process of allocating the entire Chia blockchain on a plot on your hard drive. Farming is the second part of the process, which we will touch on next.
Chia has introduced this protocol ensuring each prover is x% sure that they will farm a given block based on how much storage space they dedicate to the network. For example: instead of providing a user with all 64 x-values, all a prover can do is just take two x-values and ensure whether the proof is good enough for verification or not. The more hard drive space dedicated to farming Chia, the higher the chance farmers have of getting rewarded for their efforts.
Proof of time
Apart from farmers, the Chia network introduces “nodes” that are called Timelords. These timelords are made responsible for ensuring the passage of time as well as maintaining the same amount of time between different blocks which is usually about 10 minutes. Solana uses a similar system known as Verifiable Delay Functions (VDFs).
How does this make the Chia network more sustainable and unique?
Proof of space is computationally easier to produce. Once the plots are downloaded, they remain active for quite a long time, thus consuming very insignificant electric power consumption. There are other projects which utilize and use HDDs or SSDs for their operations such as Filecoin, SIA, and Stork. However, the goal of the Chia network is to produce a broader network in line with that of Ethereum.
It is a reason why Chia has developed its smart contract programming language such as the Chialisp. The purpose of this programming language is to build Chia’s very own DeFi applications which will help with the further adaptation of the Chia network.
What is the current value of the Chia network?
Chia Network has a market cap of $218,381,870 with a volume of $36,639,391 as of October 27, 2021. However, the price of Chia Network has declined ever since it rolled out. Its price declined from $1,600 in May 2021 to $137 today.