What Is Chromia (CHR)?
Trading under CHR, Chromia is a blockchain platform that facilitates the making of decentralized applications. The platform is made to overcome the shortcomings of other existing platforms. According to the whitepaper, the platform enables decentralized applications of the latest generation to work beyond what is currently possible to achieve with current decentralized applications. Chromia is a rebranding of Chromopolis. The whitepaper claims that other platforms allow decentralized applications to be made on their blockchain in just theory only. When a developer practically develops an app on a blockchain network, they face many problems and hindrances while making it. Such problems include bad user experience, high fees to make such apps, developers’ experience while making the app, poor security, and more. Such backdrops prevent many decentralized applications from running on the mainstream.
Thus, to address the above issues that developers and users face, Chromia came into the picture and mentioned its priorities as:
Allowing decentralized applications to be used by millions of users from around the world;
Increasing the user experience of decentralized applications to make them uniform with centralized applications; and
Allowing developers to build a secure and bug-proof application using similar standards.
The platform has several decentralized applications built on it. Chromia is used for developing games like My Neighbor Alice on the blockchain, in which players can trade and own virtual islands, collect and build items, and meet new people. Also, the Chromia platform helps enterprises. One such app for enterprises is LAC PropertyChain, which helps facilitate property transactions. Another such app on the platform is Hedget, a decentralized finance application that helps secure your investment from unexpected downfall in price. Moreover, the platform works on the Ethereum blockchain. Also, the Chromia platform uses a proof-of-work consensus mechanism.
The CHR token is the native cryptocurrency of the Chromia platform. The token is designed to empower the Chromia platform. The token helps maintain the relationship between developers, users, and investors. CHR is an ERC20 token, though the website claims that the token will be shifted to the native blockchain as soon as it is launched.
There are various uses of the CHR token. The token is used as a platform currency. CHR is a standard token of the platform, and various decentralized applications can collect their usage fee in CHR tokens. Further, various decentralized applications on the platform pay an amount of CHR to the nodes to host their hardware. Moreover, the token can be used for staking purposes as well.
History of Chromia (CHR)
The project’s whitepaper was released on May 20, 2019. The project’s team includes Or Perelman as COO, Henrik Hjelte as CEO, and Alex Mizrahi as CTO of the project. Hjelte has been pitching an idea for a start-up that involves freedom on the internet. Perelman, on the other hand, is one of the cofounders of the Bitcoin wallet. Last but not least, Mizrahi was the founder of the first blockchain token protocol. He also wrote a whitepaper for Ethereum.
How Are New Chromia (CHR) Created & Earned?
According to the whitepaper, the maximum total supply of the CHR token is one billion tokens. However, around twenty-two million tokens were burned in May 2020 to increase the token’s value. Burning is when a fraction of tokens is sent to a wallet with no private key. This means the tokens are lost forever. Tokens are usually burned to reduce availability and increase market value.
A user can earn a new CHR token primarily by staking an amount on the platform. Such staking seeks to make the user a part of the governance community. Participating in such governance intends to provide the stakers an amount of return on their staked amount. In order to gain returns, a user has to stake for at least two weeks to participate in programs that include staking.
Various developers can create different decentralized applications and games on the platform. Platform users can use their applications and pay in CHR as a fee for such usage. The Chromia platform also plans to bring together providers of computational resources and hardware to seamlessly run Dapps on the Chromia platform. The providers (also known as node providers on the platform) will enrich the Dapp experience through a shared marketplace on the Chromia platform where they will be able to connect with Dapp developers. The node providers will then receive incentives in the form of CHR tokens as they support the Dapp developers with data storage and computational resources.
