chia
Chia
$35.11-0.85% 24H
  • chia
  • Chia
    (XCH)
  • Price
    $35.11
  • Market Cap
    $141.06 M

In parallel with the increase in the popularity of DeFi systems, the interest in crypto money is increasing day by day.

With the increasing interest in the crypto money market, the search for altcoins is also gaining momentum. After the altcoins such as Dogecoin, Shiba, Reef, Pig coin, which have come to the fore recently, Chia Coin has also taken its place among the curious ones.

Cryptocurrency investors started their research to get information about the Chia Network, founded by Bram Cohen.

What is Chia Coin?

Chia Network, a blockchain and Smart Transaction Platform, was created in 2017 by Bram Cohen, the programmer of the BitTorrent protocol. In addition, Chia Coin uses the abbreviation “XCH” on exchanges.

The open-source project, which received a valuation of $ 500 million in its last investment round, has started to attract widespread attention.

The system, which rewards its miners with its proof-of-space tool enables mining with HDD and SSD hard drives. Seagate and Phison, today’s popular hard drive manufacturers, predict that hard drive prices will increase by 10 percent by the end of the year due to Chia.

Chia, which is on discs instead of video cards, is treated as nature-friendly and distinguishes it from other cryptocurrencies with these features.

Why is Chia Coin greener?

The hardware needed to mine cryptocurrencies using proof-of-work logic like Bitcoin and Ethereum consumes more power and emits heat.

Chia mining consumes much less power as it works with proof-of-space logic. Low power consumption also ensures that the heat emitted to the environment is less.

Although mining by a single person does not emit enough heat to harm the environment, mining facilities established on an area of ​​​​hundreds of square meters pose a big problem.

Chia prefers to use the concept of farming, not mining. The distinction here is that mining requires more labor, while agriculture uses only the space in the landfill.

What makes Chia Network unique?

The hardware of mining cryptocurrencies using proof-of-work logic like Bitcoin and Ethereum consumes a lot of power and emits a considerable amount of heat. Chia mining consumes much less power because it works with a proof-of-space facility. Its low power consumption also ensures that the heat emitted to the environment is less.

Mining by a single person does not emit enough heat to harm the environment. However, mining facilities are established in the area of ​​​​hundreds of square meters pose a big problem. Experts believe that the global temperature is increasing by two to three degrees due to mining events until 2033. These seemingly small numbers could spell the end of some species. Chia Coin emits much less heat than mining with a graphics card.

Chia prefers to use the concept of farming, not mining. The distinction here is that mining requires a lot of labor, while farming only uses the space in the landfill.

A crypto mining facility

The solo farming method, which is not in the pool system, is based on luck. You cannot get a fixed Chia reward using the solo method. Sometimes you can find too little Chia with this method, sometimes too much. Those who want to make a profit in this way need to establish a large farm facility. If you target to do more risky but higher potential farming, the solo method may be for you.

There are some necessary terms if you are dealing with the routine registration process. The most common one you will come across is ‘plot’. We can roughly translate the plot as a field. These fields take up 270 GiB of disk space; as a result, you can create a disk of at least 250 GB. 

Another factor after plotting based on your free storage space is speed. We see the MH/S concept, which we are familiar with from Bitcoin and Ethereum mining, which indicates the mining speed, as MB/S in Chia.

SSD, HDD, and M.2 SSD

The speed of 7200RPM hard drives usually does not exceed 100 MB/S. Because SSDs can reach very high speeds, such as 3500MB/S, they can potentially farm 35 times faster than a hard disk. SATA SSDs on the market can reach read and write speeds of up to 600 MB/s. Speed higher than this might get achieved with M.2 SSDs that plug directly into the motherboard. It is up to your planning to farm with a hard disk or an SSD. If you think of making a Chia farm with a high budget, entering this business with high-speed and large-capacity SSDs will speed things up.

What problems does Chia aim to solve?

While Bitcoin (BTC) has proven revolutionary since its 2009 launch, parts of its underlying technology and underlying assumptions are starting to show their age. While Bitcoin’s Proof-Of-Work (PoW) algorithm and Unspent Transaction Output (UTXO) model have served it well, some of the underlying inefficiencies have been difficult to address.

As Bitcoin experienced increased adoption, transactions slowed, and fees soared. This lack of scalability has plagued the project for years (despite solutions like the Lightning Network) and has resulted in a few hard forks (the term given to the change to the protocol) like Bitcoin Cash (BCH).

Bitcoin’s PoW algorithm got its place on the basic assumption that it would be an underutilized CPU resource worldwide. Instead, inexpensive electrical disposable hardware has proven far better at PoW calculations than general-purpose CPUs. As a result, miners clustered in areas suitable for hosting large data centers. China is one such area, which currently accounts for 65% of all Bitcoin mining activity.

This issue has weakened Bitcoin’s decentralization principle, as mining is only possible for private entities with resources. Increased centralization reached its most dangerous point in July 2014, when Bitcoin mining pool gHash.IO briefly exceeded 50% of the network’s total computing power.

These huge mining farms have received negative attention from the public and regulatory authorities. Bitcoin has a larger carbon footprint than Sweden, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI). Bitcoin’s environmental impact remains one of the most popular arguments against crypto adoption and has prompted significant government pressure, particularly in China.

What makes Chia Coin (XCH) different?

Basically, according to some experts, Chia currently offers the same benefits as Bitcoin but with a more secure on-chain Smart Contract environment. Let’s not forget that the smart contract functionality on the Bitcoin network is limited, and developers can easily use Chia to get secure and advanced Smart Contracts.

Chia works with a new Blockchain programming language. This programming language is called Chialisp and is safe and easy to use for developers who want to start building their smart contracts on top of this Blockchain network. Chia claims that this Blockchain network is more transparent, easy to use, and ready for developers. Chia is a new blockchain network with a cryptocurrency called Chia coin. This cryptocurrency aims to make it easier and simpler to access cryptocurrencies and Blockchain networks.

chia Chia
$49.74

Convertor

Enter Amount
Base Currency
Convert To

1 bitcoin
=
AUD

People also watch

bitcoin
BTC/AUD
$42,100.20
0.900%24H
ethereum
ETH/AUD
$2,785.22
-0.09%24H
tether
USDT/AUD
$1.42
0.060%24H
binancecoin
BNB/AUD
$463.18
1.07%24H
usd-coin
USDC/AUD
$1.42
-0.19%24H
ripple
XRP/AUD
$0.575
0.130%24H
binance-usd
BUSD/AUD
$1.41
-0.76%24H
cardano
ADA/AUD
$0.730
0.250%24H
solana
SOL/AUD
$68.94
-1.38%24H
polkadot
DOT/AUD
$14.13
-0.78%24H

FAQs

Is Chia Network safe?

As with every cryptocurrency on the market, Chia has an abbreviation. This code is XCH and represents this cryptocurrency on exchanges and other platforms. XCH has a variable price. Indeed, the fee of Chia will be hard to predict, as crypto assets are volatile and their prices fluctuate constantly. This cryptocurrency experienced a speculative rise when appeared at the peak of the bull market in 2021. XCH managed to hit an all-time high of $1,600 on May 15, 2021.

However, it is not possible to know what may happen in this crypto money in the future. As a relatively new project on the market, it may attract the attention of a large number of investors or, like thousands of other unsuccessful projects, may end a few months after launch. However, a cryptocurrency market is a speculative place for investors. You should not enter any cryptocurrency without doing your research. The best advice is to consult experts in Bitunivex.

What you need to know about chia farming?
  • Farming is faster on Linux systems. Ubuntu can be an operating system for Chia Coin farming.
  • Do not forget to set the power options of the computer you will farm; in this case, it does not shut down even if the system is idle.
  • Chia has frequently updated software. It is not stable as it is new yet.
  • If you have a large farming facility, connecting equipment to 2-3 computers instead of a single computer can increase your chances of finding Chia.
What is the security level of the Chia Network?

Every consensus mechanism has tradeoffs and weak points, of which Proof-of-Space has many. However, Chia has integrated two elements to enable protection: grinding and long-range attacks.

The most common grinding attack is when an adversary continuously computes info about the tip of the blockchain until they can extend the next block over others. The grounding networks can get beholden to the grinder.

There are a few tricks to combat grinding in Chia Network:

  • The data and consensus layer are separate but connected with a unique private key. Chia claims the uniqueness of each sign-off protects the underlying consensus layer from grinding.
  • A time delay function (VDF) is infused into the consensus layer between every Proof-of-Space.
  • The VDF acts as a checkpoint for the Chia network. It is necessary as an adversary wishing to conduct a deep hard fork on the network needs more than just a large amount of space used for farming, but also need to compute each VDF along the way.
  • And, by design, VFDs require resource-intensive computation. A VDF is a function that takes a set amount of time to compute and can not get parallelized. Chia expects ASICs to be created for VDF computation, although the network requires only a few VDF creators (called Time Lords) to run smoothly. Moreover, Time Lords earn no Chia for creating these proofs.
Is Chia Network better than Bitcoin?

The short answer: no. The long answer remains situated around what design goals an investor or user has for a blockchain-based money network.

 

In some sense, Chia’s consensus mechanism merely obfuscates the cost of resources by moving costs from operational expenses to capital costs. Creating hard drives also costs resources that are already reflected in the mark-up in HDD/SSD cards. It also remains to be tested over time.

 

Networks like Chia or Ethereum 2.0 may have novel consensus methods but have yet to get proven to the same degree necessary for peer-to-peer money. Meanwhile, Bitcoin continues to run block-after-block, day-after-day, year-after-year.