XCH (Chia Network) Introduction

A new blockchain and smart transaction platform that is easier to use, more efficient, and secure

I. Brief Introduction

1. What is Chia?

Chia was incorporated in August of 2017 to develop an improved blockchain and smart transaction platform. We are building the Chia Network to improve the global financial and payments systems. Chia is the first enterprise-grade digital asset. Chia is using the first new Nakamoto consensus algorithm since Bitcoin. Called Proof of Space and Time, it was created by Bram Cohen, the best network protocol engineer alive and the inventor of BitTorrent. Chialisp is Chia’s new smart transaction programming language that is powerful, easy to audit, and secure. Reference smart transactions currently available are atomic swaps, authorized payees, recoverable wallets, multi-sig wallets, and rate-limited wallets.

2. What is Proof of Space and Tim?

Proof of Space is a cryptographic technique where provers show that they allocate unused hard drive space for storage space. To be used as a consensus method, Proof of Space must be tied to Proof of Time. PoT ensures that block times have consistency in the time between them and increases the overall security of the blockchain.

3. What problems does Chia project solve?

First of all, Chia has a new innovative Nakamoto consensus algorithm that removes the energy demands of Proof of Work from the system. Compared to other cryptocurrencies, Chia has significantly better security due to its more decentralized blockchain. 

In addition, Chialisp is Chia’s new smart transaction programming language that is powerful, easy to audit, and secure and will unlock the security, transparency, and ease of use that cryptocurrencies promise. Chia is also adopting more modern cryptographic tools to enable richer smart transaction capabilities. Chia is taking a new and superior approach to funding, building, and supporting a blockchain via an eventually public, for-profit, open-source development company that holds a pre-farm. Chia will use its pre-farm (Strategic Reserve) to ease the volatility of the coin to mitigate bubbles and crashes and to drive the adoption of chia.

4. How does Chia solve the problems above?

Chia has created three new core inventions and advanced the interest in, and adoption of, a fourth. Firstly, Chia created the first intended for the production BLS Signatures library. Second, Chia is the first production use of Verifiable Delay Functions or VDFs. Third, Chia createdProof of Space and Time for Nakamoto consensus.

Finally, Chia is the first production use of class groupsof unknown order which has spawned significant new research into their applicability to cryptography.

II. Token Information

1. Capitalization

Chia is not planning an ICO. Instead, their goal is to take the company’s equity public on an American stock exchange. Since its inception, the Company has raised approximately $16M in funding via SAFE agreements. These have largely been in three rounds with three different standards for price caps and conversion features. The last round of $5M was completed in August of 2020. 

Chia’s investors include Slow Ventures, Naval Ravikant, Breyer Capital, Collaborative Fund, IDEO Colab, a16z Crypto, True Ventures, Galaxy Digital, Cygni Capital, Greylock Partners, DCM, Metastable, StillMark Capital, and Kamal Ravikant.

2. Token Distribution

The Company expects to create 21 million chia at the mainnet launch (Chia Network’s Strategic Reserve or pre-farm) and place those on the company’s balance sheet. 

The public company structure, in conjunction with sound corporate governance, will provide a prudent framework to manage the Strategic Reserve and allow us to distribute excess chia, if any, in a fair way to shareholders using traditional corporate tools.

Farming rewards create new chia once Chia Network’s blockchain is launched on Friday, March 19, 2021. Transactions will be enabled on May 3, 2021, around 10 AM PDT.

● 64 chia will be created every ten minutes for the first three years after launch.

● 32 chia will be created every ten minutes in years four through six after launch.

● 16 chia will be created every ten minutes in years seven through nine after launch.

● 8 chia will be created every ten minutes in years ten through twelve.

● 4 chia will be created every ten minutes for every year after year twelve.

III. Related Links

1.Chia official website:https://www.chia.net/

2. Chia greenpaper:https://www.chia.net/greenpaper/

3. Business whitepaper:https://www.chia.net/assets/Chia-Business-Whitepaper-2021-02-09-v1.0.pdf

4. Blockchain explore:https://www.chiaexplorer.com/blockchain/blocks

5. Github website:https://github.com/Chia-Network

Note: The project introduction comes from the materials published or provided by the official project team, which is for reference only and does not constitute investment advice. Some of the content may be out of date, error, or omission. Huobi does not take responsibility for any resulting direct or indirect losses. 

 

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