What is Chia?

Chia Network (XCH) is a layer 1 blockchain that employs a unique consensus mechanism known as proof-of-space-and-time (PoST). This mechanism, combined with Chia's custom-designed programming language, Chialisp, allows the blockchain to operate with less energy without compromising network security. Unlike many other blockchains, Chia Network is a public, for-profit, open source company that strives to be recognized by major financial institutions. The blockchain is designed for enterprise use, and Chia Network plans to hold XCH on its balance sheet in the event of a listing.

How does Chia work?

Chia Network operates using a less electricity-intensive consensus mechanism that improves upon proof-of-stake (PoS) and proof-of-work (PoW). The network achieves consensus by combining proof-of-space (PoS) with proof-of-time (PoT), both of which function in distinct ways. Proof-of-space requires miners to allocate unused storage on their hard disk drives to solve challenges, similar to puzzle-solving in proof-of-work (PoW). Proof-of-time, on the other hand, demonstrates the passage of time through Verifiable Delay Functions. Chia Network also uses its own programming language, Chialisp, which is smart contract-compatible and allows for simultaneous transactions, aiming to make Chia Network more energy-efficient than other blockchains.

What are the potential use cases for Chia?

Chia Network is designed for a wide range of applications, particularly in the enterprise sector. Its unique consensus mechanism and programming language make it a suitable choice for developers, enterprise, government, creators, and farmers. Chia Network's blockchain technology aims to enhance global infrastructure and data management, and can be used to build applications. For instance, the Climate Action Data Trust (CADT) uses Chia’s Layer-1 blockchain technology and DataLayer application to harmonize carbon registry data for transparent and efficient carbon accounting.

What is the history of Chia?

Chia Network was established in Delaware in 2017 by Bram Cohen, the founder of the popular peer-to-peer file sharing platform BitTorrent. The project is led by an experienced senior management team, including former NASDAQ CEO Gene Hoffman as chief operating officer (COO) and former Overstock.com CEO Mitch Edwards as chief financial officer (CFO). Chia Network released its first proof-of-time function in 2019, and the first beta version of its blockchain launched in 2020. The network achieved full functionality, including wallet functionality, transactions, and smart contracts, with its mainnet launch in 2021.