Chia: Green Cryptocurrencies for the environment
Cryptocurrencies are often criticized for energy consumption and there are some who choose the low energy route to prove otherwise. One of these is Chia (XCH), developed by Chia Network, a privately held company headquartered in San Francisco, California.
It was founded in 2017 by Bram Cohen, an American computer scientist who created BitTorrent in 2001, a peer-to-peer file sharing platform. He is also the co-founder of CodeCon and organizer of the san Francisco Bay Area P2P-hackers meeting.
The team includes the former founder and CEO of eMusic.com and Vindicia, Gene Hoffman, of which I report the statement:” Chia is green money for a digital world. We’re building a blockchain based on proofs of space and time to make a cryptocurrency which is less wasteful, more decentralized, and more secure.”
Chia has already garnered considerable interest and its investors include Andreessen Horowitz, Richmond Global Ventures, Naval Ravikant and Galaxy Digital. Chia aims to build a better blockchain and smart transaction platform which is more secure, sustainable and powerful. Chia uses an algorithm called Proof of Space and Time, that leverages the vast amounts of over-allocated hard drive space to create the first new Nakamoto Consensus since Bitcoin in 2009. Through Proof of Space farmers prove that they allocate unused hard drive space to the network, while Proof of Time increases the overall security of the blockchain by increasing the attack resistance of our consensus to 51% in most cases. Chia has its own programming language called Chialisp. This is an on-chain programming language that is smart contract-compatible and its unique features make it completely sandboxed, composable and with high interoperability. Compared to other Cryptocurrencies, Chia is less energy intensive and more inclusive while being at least as secure.
According to the White Paper, the tokenomics is as follows: 21 million XCH were pre-farmed to help fund the creation and administration of Chia. After the Chia pre-farm, Chia offers farming rewards of 64 chia every 10 minutes. Over the first 12 years the farming rewards will be halved at the end of each 3rd year. From year 13 to infinity, the rewards will remain constant at 4 chia every 10 minutes leading to ever decreasing inflation rates. Chia’s inflation falls through the 0.50% rate 22 years after mainnet launch.
On the official website, you can download the White Paper and the Green Paper.
On October 13, 2021 Chia partnered With Supranational, a leader in hardware accelerated cryptography, to further secure and scale hardware that makes transactions as safe as proof of work but at a fraction of the energy use. This partnership further fortified Chia’s blockchain, reaffirming its status of one of the best Cryptocurrencies of the Crypto space.
On May 18, 2022 Chia announced its membership with the Blockchain Association, to build regulatory and institutional trust through demonstrated security, sustainability, equitable access, and inclusivity.
Leave a comment below and tell me what you think about Chia, the role of Cryptocurrencies in the environment protection, the aspects that can be improved and if you know other notable green Cryptocurrencies. Consider this space a place to talk without censorship.
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