Chia is a new crypto token that is doing the rounds on the internet lately mostly because of a novel mining approach.
The founder of the cryptocurrency, Bram Cohen claims that the goal of the crypto token is green mining. He is the former founder of BitTorrent and also the host of a podcast operated by a crypto news agency.
Cohen has entered the market at a time when the energy used for mining is under scrutiny in regards to cryptocurrency.
Bitcoin and cryptocurrencies generally have this process called mining where as part of growing the blockchain there’ll typically be customer hardware. The process that is useful only for this is bought and that then burns quite a bit of electricity to build new blocks. This burns a lot of electricity and is accessible only if you have the special hardware.
However, Chia’s consensus algorithm works mostly off of space like is on the hard drive. The rewards one gets from farming Chia are in exact proportion to the amount of space that one puts into it.
There is very little electricity that goes into the farming process and no specialized hardware is necessary. Mining is more open to individuals rather than mining rigs or things like that.
Talking about the functionality that exists on Chia at the moment the prime concern is pooling protocol. The Chia network has grown faster than what was expected as a result of which people are not getting rewards very often.
The Chia network is, therefore, according to Cohen, creating a pooling protocol to smooth that out. The network is working on making it do better on custody arrangements and DIDs and NFTs.
The Chia founder revealed that as part of immediate plans he wants to focus on tokenization. When things in Chia are tokenized you automatically get distributed exchange between all the colored coins.
In principle, cryptocurrencies should have better security control because they are entirely under the control of the end-user. Therefore, Chia offers a rate-limited wallet so that when people are sending funds they are sent directly in this wallet.
Out of this wallet, money can only be spent at a certain rate using the hotkey. If it gets attacked and someone steals your credentials then the safe deposit box can be accessed to get the coldkey. The coldkey is able to drain the thing completely. This ensures the hacker is only able to get the amount they were able to drain in the time period before the recovery process. This is basic functionality stuff that has unfortunately gotten short shrift in cryptocurrency development generally.
Chia has been kind of the green Bitcoin which is gradually gaining popularity owing to the rising climate concerns. Bitcoin is burning a lot of electricity and that is why people like Musk have recently raised concerns. Elon Musk recently backed out from Bitcoin for Tesla on account of environmental concerns. It is refreshing to see a new cryptocurrency being introduced that aims to be greener and environment-friendly.