Chia is a native cryptocurrency of the Chia Network blockchain. The peculiarity of this blockchain is that its operation is provided by farming, but the cost of electricity for farming is much lower than in other blockchains based on mining and Proof-of-Work consensus algorithms (more details in the article about consensus algorithms).
Chia Network is open source. It created its own programming language, “Chialisp,” to implement the blockchain, which has attracted a fairly large and active community of developers due to its relative simplicity and intuitiveness. As an alternative way to invest your money, you can also consider Mina Protocol coin price prediction.
How the Chia Network blockchain works. Chia coin price prediction
The Chia blockchain is based on the original Proof-of-Space and Time algorithm. Funding is done via HDD or SDD. Patterns are written to the miners’ disk space and filled with hash codes. Every 45 seconds a new block is added to the blockchain, at which point its hash is calculated and compared to the hash codes stored on the miners’ disks. The miner with the closest hashcode match receives the reward. The probability of successfully finding a hash directly depends on the amount of free disk space allocated for Chia farming.
To protect against blockchain hacking by hash-code enumeration, the so-called grinding attacks are implemented as protection, the network algorithms provide a certain pause between the appearance of blocks.
Advantages and prospects. Chia coin price prediction 2030
The Chia Network blockchain has several advantages over other projects. The main ones are:
- The efficiency of the Proof-of-Space and Time network integrity consensus algorithm. Thanks to it, the network consumes relatively little power. For comparison, one powerful graphics gas pedal consumes 350-400 W, an HDD only 35 W, and an SDD even less. Thus, Chia Network has much less impact on the environment than blockchains based on the Proof-of-Work algorithm, in particular Bitcoin
- A rich toolkit provided by the extensive Chialisp language capabilities, including smart contracts, DeFi applications, lending capabilities, etc.
- Strategic reserve in amount of 21 millions of prefarmed coins, which according to creators idea will be used for liquidity regulation (for exchanges, partners, and for limitation of excessive volatility). Some market participants consider it to be a disadvantage, though, due to perceived risks of prefarmed coins volume hitting the market and affecting asset price
- More accessible, regarding equipment cost, to enter charming, which provides a wide network coverage and a high level of decentralization
- Last on the list (but not least), Chia’s advantage is the relatively low probability of falling under SEC regulation because no assets in the form of tokens or coins were transferred to investors in the early stages of the project’s development
Current Project Overview
There are 514,000 of these coins now minted; 21 million pre-minted initially. The coin was trading at $1,800 at the start, now down. The capitalization of the 514,000 CHIA now circulating is $208 million.
Briefly about the project: it’s like bitcoin, but modern, with a different consensus algorithm, and is farmed on hard drives. Now the reward to miners per block is 64 coins, every three years it will be halved, and after the fourth cycle halving will stop.
Most frightening and alarming is the fact that the CHIA token is already in the amount of 21 million coins, which are stored in two wallets known to the creators of the project. However, the situation with bitcoin is similar. Some non-random people secretly held early bitcoins, while CHIA just talked about it openly. So at the very least, you can keep an eye on these two wallets, and if the coins don’t move from them, then all is well.
Why consider Chia coin price prediction
Mina Protocol coin prices will be less interesting to investors. Andreessen Horowitz’s fund has already invested in it. The rise in the price of hard drives. This is a game that is not easily conceived; maybe the regulator will give this project the green light. The project’s Twitter is also gaining momentum, and it is being followed by well-known people and projects — Fred Erson and Catherine Haun of the Coinbase team and other rather serious personalities.
The number of active miners is causing the growth of this network. This growth in activity is a serious indicator that this project should not be compared to others. Yes, it’s scary to have 21 million coins in two wallets. Keep an eye on them. If you see that something is spent from them — fix the profit. You can find out about these events at letizo.com.