On May 3, Chia proudly unveiled its first eco-friendly currency. XCH makes mining more accessible and sustainable. This brainchild of Bram Cohen, who previously invented BitTorrent, has a lot to offer. Chia is expected to receive wide adoption quickly.
The green coin is projected to be adopted by digital exchanges, financial, corporate, commercial, and governmental institutions globally. According to the latest dynamics of the Chia coin from www.coinspeaker.com/coins/chia/, $1,645 is its latest peak so far. Here is a look at what this blockchain can offer.
A Sustainable Consensus Protocol
So, what exactly makes this coin more sustainable? Chia farms consume less energy and have a reduced carbon footprint. In lieu of the “Proof of Work” consensus protocol used by Bitcoin and Ethereum, they rely on the proprietary "Proof of Space and Time" alternative. The key advantages are increased fairness and energy efficiency, along with decentralization.
All of this is possible thanks to the use of storage space and the time variable (VDF — "verifiable delay function”). Several CPU cycles are necessary to generate hard drive plots. Afterward, the farmer can use their drive space for years. Verification of new blocks is based on an energy-efficient resource — unused disc space — which makes farming a lightweight process.
Chia is presented as a secure smart coin, an alternative to conventional financial networks. This energy-efficient system has green money at its core. Chia is generated to reward farmers, just like in the Bitcoin or Ethereum environments. The protocol is based on an enhanced version of UTXO, the Unspent Transaction Output model of Bitcoin.
In comparison with predecessors, this system is more flexible and programmable. Over the first three years of mining, each farmer receives two coins per block, in line with the Nakamoto consensus. According to the founder, Chia's long-term mission is the provision of "environmentally sustainable financial freedom".
The Lisp coin language is the foundation of the network. Simple and secure, it turns everything on the blockchain into a coin. This is the full bundle: smart coins, smart contracts, and smart transactions. The current functionality allows for banking, payments, global exchange, issuance of assets, and other purposes. The key features of wallets with these colored coins include:
- Digital identity system
- Rate limitations
- Authorized payee system
- Multi-signature capabilities
- Atomic swaps
The coin is suitable for clearance and custody. The controls may be more rigorous than internal accounting systems. The Chia offers better protection against loss or theft with an array of risk tolerance levels.
Chia presents a reinvention of the ‘everything is a coin’ philosophy. Bram Cohen is planning to expand the capabilities of its creation in terms of NFT support, enhancement of colored coins, and digital identity wallets. He wants Chia to "become the core of a new financial architecture". Chia is already the biggest and most decentralized blockchain by full node count. Time will tell if Cohen's wishes will come true.