CHIA NETWORK Fundamentals with POS Overview

Ridam · May 24, 2021

In this topic I would be explaining about all the information related to the Chia project. Basically, it would be more like the fundamental analysis bounded with the Chia working as I see many members are getting confused and so I was at the beginning.

WHAT IS CONSENSOUS MECHANISM?

For those of you who aren’t aware about the consensus mechanism. Consensus mechanism refers to the process in which the nodes, connected to the network, agree to the data being recorded in the Blockchain. There are several models of consensus in the cryptography. POW(Proof-of-Work) is with us from the longevity and POS (Proof-of-Stake) was added to the list. Now we have another member with the innovative mechanism known as POS (Proof- of- Space).

In the following post, I would be referring POS as PROOF OF SPACE.

WHAT IS POS?

POS refers to the process of consensus in which miner gives certain amount of free storage to the network. It is just as staking your coins in Proof of Stake mechanism and dedicating your Processing power in Proof of work mechanism.

There is one more mechanism bonded together with the POS known as Proof of Time. In simpler words we can take it as the gap between two successive blocks.

HOW DOES POS AND POT WORKS IN CHIA NETWORK?

I would present things in point wise so that you could get easy understanding of the topic.

Miners in Chia network are known as Farmers. And they download the Chia network Blockchain application in their OS.
They dedicate their free space and the space is seeded and the cryptographic information is stored in the PLOTS.
Blockchain broadcast a challenge to the network.
Farmers start scanning the Plots to find the nearest hashes possible to the challenge.
The first one to find wins the Block reward and the new Block gets added to the chain.
In between Blocks, POT comes into play for a small delay which is so small that it isn’t noticeable to the network and has no hinderance to the speed of the network.

I anticipate that the working is now clear about the network. Let’s Jump into the main motive of the Project.

MAIN INTENTION OF THE PROJECT:

They are mainly focused on reducing the computing power that the Bitcoin and other crypto currency requires for the mining in a sustainable way with same level of security other Blockchain possess. The decrement of the computing power would also reduce the energy consumption of the mining and would definitely help in reduction of energy consumption which is a burning issue with today’s crypto world. Better P2P transactions in eco-friendly way is also the part in which Chia would play. Furthermore, mining with a small investment has become possible because of the Chia. Although, owning a greater number of plots increases the probability of the earning more chia but Chia reduces the risk of rewards going only to big player by implementation of different mechanism. Accordingly, the distribution of the rewards would depend on the luck unlike other Blockchains.

FOUNDERS AND INVESTORS:

Bram Cohen is the founder of the project and the project is with us since 2017. I suppose everyone of you knows him as he is the one who founded the Bit- Torrent along with Ashwin Navin . Obviously, the project is open source so anyone can help in the development of the project and many are doing so. The genesis block of chia had happened on March 19, 2021.

Talking about the investors the major are:

ANDREESSEN HOROWITZ
greylockpartners
trueventures
slowventures
GalaxyINVESTMENTGROUP
dcm
METASTABLE

FUNDAMNETALS:

The Chia network has the native coin which is known as XCH. The total supply of the asset is 21,514,760. It has the market cap of only 390Millions as the number of coins in circulations is only 514,760. The current price of the coin is 763$ and ranks at #2543 according to the market cap. Taking this in consideration, we can expect a good room for the coin to perform as the project seems really solid and so the community growing with it. The ATH is at 1749$ on May third 2021.

HOW TO TRADE CHIA?

If you aren’t mining XCH and thinking to trade or hodl for long term, you can look into the exchanges in which XCH is being traded. The 24 hour volume is reported as 54Millions so I am sure there is no shortage of liquidity while trading it. The exchanges that has listed CHIA are:

HUOBI GLOBAL -DIRECT LINK TO TRADE XCH/USDT
OKEX DIRECT LINK TO TRADE XCH/USDT
GATE.IO DIRECT LINK TO TRADE XCH/USDT

There is also XCH/BTC pair in all of the exchanges I have mentioned above. So, You can trade XCH to whichever pair you like to do on.

So. what do you think about the motto of the Chia coin and are you trading the chia in any exchanges or hodling for long term? Be sure to reply your thoughts and if you like to add information about project, it is profoundly welcomed.

Source: CHIA NETWORK FAQ

CHIA NETWORK WEBSITE

CHIA NETWORK COINMARKETCAP

Edited May 24, 2021 by Ridam
I had forget to add source, Pardon