Chia Network is a blockchain startup founded in August 2017 to create a better blockchain and smart transaction platform. Bram Cohen, the inventor of BitTorrent, founded the Chia Network. It also includes executive leadership from Gene Hoffman, the former founder and CEO of eMusic.com and Vindicia, and Mitch Edwards, the former acting CEO of Overstock.
The Chia blockchain was built by the Chia Core team to improve the global financial and payment systems; Chia is the world's first enterprise-grade digital money. It aims to operate an eco-friendly, more secure, and user-friendly payment system for cross-border payments, issuing financial assets, lending, escrow payments, institutional custody, and distributed identity.
People are using Chia Network (XCH) for the following
Pre-farm: Chia is an open-source development company that holds a pre-farm. Anyone can download the Chia Network software across different platforms like Windows, macOS, Ubuntu/Debian, CentOs/Redhat, and other platforms. 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. Users can farm chia (XCH) on their SSD or HDD and then trade chia (XCH) to various crypto exchanges once they have enough chia.You can calculate how much XCH you will farm with your current setup by using our farming calculator tool.
Smart Transactions: Chialisp is Chia's new smart transaction programming language that is powerful, easy to audit, and secure, and will enable cryptocurrencies to deliver on security transparency and ease of use. Chia is also implementing more modern cryptographic tools in order to enable more robust smart transaction capabilities.
Colored coins: The Chia Colored coins enable you to create transient values and various Blockchain applications. It is simple to carry out because this process does not usually result in flash loans. These features are unique and a great way to get new users interested in investing in the Chia token.
Clawback escrow: a feature that allows you to cancel or reverse a withdrawal process after it has been submitted to the Blockchain. As a result, you can "clawback" your funds after initiating a withdrawal process within a certain time frame.
Slow paper wallet: a feature that allows you to securely store smart transactions in your hot wallet that may cause you to lose access to your funds. This feature, however, is not intended to be used in place of your private key.
Chia Network’s digital currency : XCH
Chia Network has a digital currency called Chia, as well as the ticker symbol XCH. You can start farming Chia(XCH) using a hard disk drive (HDDs) or solid-state drives(SSD) unused storage space rather than processing power, as with Proof of Work cryptocurrencies such as Bitcoin. Chia is the first newly introduced Nakamoto consensus algorithm since Bitcoin.
Chia cryptocurrency is a greener cryptocurrency for the world and, at the same time, is building a sizeable company that supports but does not control that community. Chia Network believes that “digital money” should be easier to use than cash, harder to lose, and nearly impossible to steal.
The Chia Network Pre-farm
Chia will use its pre-farm (Strategic Reserve) to ease the coin’s volatility to mitigate bubbles and crashes and drive the adoption of chia. The Mainnet launched on March 17 with a 21 million XCH available to be farmed by the community.
Chia will pre-farm an ample supply of coins at network launch to help stabilize and grow the Chia economy through Chia’s novel business plan of lending Chia. You can read Chia’s Business White Paper for additional details.
Why do we need to pre-farm ?
Chia Network has developed a novel business model to both reduce coin volatility and increase adoption. It hopes to reduce the token's volatility from quarter to quarter by lending Chia and to manage the interest rates on those loans and using other tools such as buying chia's stock with Chia coins.
Chia Network plans to loan Chia to Global 5000 companies to drive adoption, which will use it to pay their international vendors faster, more cheaply, and securely. It also plans to use the strategic reserve to support development and adoption.
Chia Network intends to invest in promising startups in the Chia ecosystem, potentially increase farming rewards for limited periods to encourage more farming, and fund corporations that pay 105% of their international payables in Chia rather than fiat currency.
What is Chia’s inflation ?
Chia offers farming rewards of 64 chia every 10 minutes after the Chia pre-farm. The farming rewards will be halved at the end of each third year for the first 12 years. From year 13 to infinity, the rewards will remain constant at 4 chia every 10 minutes, resulting in ever-lower inflation rates. Chia's inflation rate falls below 0.50 % rate 22 years after the mainnet's launch.
Chia Network as a Bitcoin Rival
Bitcoin is not good enough and eco-friendly like Chia because Chia had ten years to research the new digital money ecosystem and believes we can make cryptocurrency more decentralized, secure, and user-friendly. One of Chia’s early backers said: "Bram Cohen is one of the greatest living protocol designers (BitTorrent), right up there with Satoshi and Vitalik” - Naval Ravikant.