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In the cryptocurrency space, changes are constantly occurring, aimed at delivering new products, but also at enhancing the functionality and security of transactions carried out on the blockchain. One of the more interesting solutions, truly worth knowing, is the Chia network.
What is the Chia cryptocurrency and how does it work? What makes it stand out and what opportunities does it offer for cryptocurrency investors? Read on to find out.
Chia Network – What is Chia and What is the Chia Price?
Chia is actually a relatively new solution in the crypto world. It was implemented in 2017 and was intended to become an alternative to other digital assets, providing a better level of energy efficiency and ensuring good security for blockchain transactions.
Within the Chia network, there is also a native cryptocurrency, Chia. Is it worth buying Chia? At the moment, the price of Chia XCH is about 32.38 USD, and the market capitalization is 306,170,021 USD (data as of 17.12.23).
Proof of Time Technology and the Proof of Space and Time Solution
What makes Chia Network unique? Its most important feature is the use of a protocol that operates based on the Proof of Space and Time (PoST) consensus algorithm, unlike other cryptocurrencies that, for example, rely on Proof of Work (PoW) or Proof of Stake (PoS).
This network consensus assumes that miners (in this case called farmers, more on this below) provide free space on their hard drives in the network. Combining both Proof of Space and Proof of Time protocols allows for excellent results and a high level of network decentralization. It reduces energy consumption compared to Proof of Work, used by Bitcoin, while maintaining the highest standards of blockchain security. Remember that in Proof of Time, the consistency of blocks and their real-time synchronization are important. In Chia, this provides enormous resistance to attacks or manipulations under various conditions.
Specialized Language in Chia Network – Meet Chialisp
A great advantage of the Chia Network is its own programming language, Chialisp. It is distinguished by its simplicity, clarity, and high security. It also provides access to a range of functionalities, including:
- creating smart contracts,
- decentralized applications,
- authorizing transactions,
- value tokens.
Chialisp is fully compatible with the entire network, creating a coherent, functional solution in blockchain technology, enabling various cryptocurrency transactions to be carried out.
Mining Chia – What You Should Know
How does the process of mining Chia, or rather farming Chia, proceed? A prospective farmer must have free space on their hard drive, which they agree to share for the blockchain’s needs. After installing special software on their computer, the disk space is allocated to so-called plots.
The application contains a node that synchronizes the blockchain. Its task is to create sets of numbers within specific plots on the disk. When a new block is formed, its number is created based on the previous one. At such moments, farmers must check their plots to see if any of them have a number close to the so-called challenge number. The one with the closest number is rewarded with XCH tokens. This means that the more plots, the greater the chance of the right number, and thus – earning in cryptocurrencies.
Chia farming only requires having a computer with free disk space and software to start farming. This significantly differs from the classic mining of Bitcoins, which requires dedicated hardware with high computing power and mining, generating enormous energy consumption.
Comparing Chia to Bitcoin – How Do the Cryptocurrencies Differ?
It can already be said that Chia is an interesting alternative to other cryptocurrencies, including Bitcoin. Learn more about the differences between these two cryptocurrencies.
It is estimated that compared to Bitcoin, Chia is up to 500 times more energy-efficient, significantly reducing the cost of its mining. At the same time, it is even 20 times faster than Bitcoin. Additionally, its level of decentralization is much higher than that of the world’s most popular cryptocurrency. Both projects differ, of course, in their transaction verification mechanism, as mentioned earlier. While Chia uses PoST, Bitcoin uses PoW.
An interesting difference is that the maximum supply of Bitcoin is 21 million. With Chia, there are no such limits, and future and current supply can be variable and grow over time.
Chia Network – Summary
It turns out that Chia is definitely more “green” crypto than many other coins. Chia farming generates significantly less energy consumption, which translates into lower costs. It is still possible to buy XCH at an attractive price, and the level of security in its case is really high.
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