Do you know Chia (XCH)?
Every day new projects emerge in the crypto world dedicated to attract the attention and capital of investors eager to increase profits through digital currencies and the technologies behind these incipient cryptographic developments. In the face of such interest, many projects have gained the attention and money of a large part of the crypto-enthusiast community in the hope of presenting their work as the "new improved Bitcoin", generating immense expectations among those who blindly trust in this type of ideas, however, Satoshi Nakamoto's invention continues to be the preferred and most important recipient of capital in the crypto-sphere, its market capitalization which absorbs approximately 70% of the investments in this segment of cryptocurrencies proves it.
Of course, this preponderance of Bitcoin does not discourage the emergence of new projects, on the contrary, it rather stimulates them; for this reason it is important to know those that are in the limelight of the crypto world before making the decision to involve our funds in them, since we know that this type of investment is extremely risky and if we do not study it in depth it is possible that we lose our money. I must warn that under no circumstances the publication presented here should be understood as an advice or counseling on the project which I will talk about in the following lines which is called Chia (XCH), you as a reader and owner of your funds is who should make the decision after soaking in information about these new developments.
Now, let's get to know Chia in depth, which is a cryptocurrency that uses an interesting consensus mechanism called "proof of space and time", which allows mining this digital currency by using the processing power of PC hard disks. Its developers claim that under this procedure the system is more secure, better distributed and cleaner than Bitcoin since it requires less energy than those projects based on Proof-of-Work (PoW).
Chia works with its own blockchain, where its digital currency XCH circulates and transactions are established from its platform, which is designed to facilitate all types of payments (at least that is what they intend to demonstrate as expressed in their whitepaper). Behind the technology that makes this project possible stands out Bram Cohen creator of BitTorrent, who was in charge of presenting Chia to the world in 2017 and launched in the field of cryptocurrencies in May 2021, under the system of online farming rewards and other transactions. According to Cohen, what sets Chia apart from other digital currencies is its unique "proof of space and time" consensus mechanism, the method by which the blockchain is secured.
As it is known, some projects use PoW-based consensus mechanisms (e.g. Bitcoin) while others make use of the well-known Proof of Stake (PoS) such as Cosmos, Chia bases its effort on what they call "proof of space and time", a method that replaces the formula of making computers compete to solve complex mathematical problems with a lottery mechanism, where the use of hard disks and solid drives is the only way to be part of the system proposed by this technology. Chia users or farmers dedicate spaces or "plots" of 100 GB in their hard disks; where each one of these is supplied with hashes. When a new block is added to the Chia blockchain, its hash is compared with those of the rest of the farmers, and the user who comes closest to the block is the winner and receives the corresponding reward.
Evidently feeding the data hard drives does not require much computing power and uses little energy, however this does not guarantee protection against attacks from external factors, applying multiple possibilities until finding the best option capable of breaching the system. To protect against this, the network needs to overcome a certain amount of time between blocks; this means that users cannot simply rewrite the frames indefinitely to decrypt the solution.
One of the advantages of Chia is the fact that by focusing on storage space and not on processing power as in the case of Bitcoin, energy consumption is much lower, although this argument that Chia's developers ponder as its strongest point should not necessarily be considered as a factor of environmental protection.
should not necessarily be considered as a factor of environmental protection. The possible proliferation of hard disk manufacturers and the impact this may have on nature can be attributed to Chia and its method of agriculture. The operation of a proof-of-space node also requires some electricity to be consumed, which, although substantially less than that of a proof-of-work node, is still greater than zero, so it is inaccurate to say that it is 100% environmentally friendly as its developers would have you believe.
On the other hand some detractors claim that Chia and its method generate damage to hard disk drives and SSDs, especially those smaller ones used by farmers for the procedures they perform on the system. In fact, some cloud service providers, such as Hetzner, have told their users that they are not allowed to use Chia on their servers, considering that this procedure could affect the company's storage units.
The XCH token has only been in the cryptosphere for a few months, so it is not available for exchange on the most popular exchange platforms such as Binance or Coinbase, however it is possible to acquire it on Huobi Global, Gate.io or OKEx depending on the buying and selling pairs. As of today Chia's market price is around US$ 207.36, its total supply is 22,582,025 XCH and so far 1,582,223.00 XCH has been mined.
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