Along with the invention of cryptocurrencies emerged the concept of crypto mining – the process by which new crypto tokens are generated, and crypto transactions are verified on a blockchain. Mining is an integral part of blockchain operations, and how it occurs varies from one consensus algorithm to the other.
For instance, Bitcoin mining is regulated by the Proof-of-Work (PoW) algorithm, which usually requires nodes to solve a mathematical puzzle to mine a new block. Successful miners are then rewarded with newly generated tokens or transaction fees.
Furthermore, there is the Proof-of-Stake (PoS) algorithm on the Ethereum Network is considered an improvement on PoW as its mining process is less energy-intensive. Mining on the PoS algorithm is dependent on the number of tokens a validator stakes on the network.
A few years ago, the developers at the Chia Network Inc., seeking to improve the existing consensus models, launched the Chia Network, which utilizes the Proof of Time and Space (PoST).
The PoST algorithm is described as a massive upgrade as it consumes much less energy than Proof-of-Work and Proof-of-Stake during mining operations. Since its launch, the Chia Network has witnessed a favorable level of adoption, with its native token, the XCH, presently being mined in over 160 nations worldwide.
This piece is curated to discuss XCH token, price overview, technical analysis, and Chia Coin price predictions for 2022-2031.
Šiandien Chia price is $42.28 with a 24-hour trading volume of $8,782,414. Chia is up 2.84% in the last 24 hours. The current CoinMarketCap ranking is #144, with a live market cap of $169,973,243 USD. It has a circulating supply of 4,020,263 XCH coins.
What is Chia Network (XCH) Coin?
The Chia token was released on 17 March 2021 by Chia Network Inc, owned by a computer programmer and founder of BitTorrent, Bram Cohen. The Chia crypto is represented as XCH and runs on the Chia Network, a public and open-source blockchain with a personalized programming language known as Charlisp.
Based in Delaware, Chia Network Inc. launched the beta version of its blockchain in 2019. After two years of successful testing, the mainnet became public in March 2021. A few months later, transaction features were enabled, and the Chia Network became fully functional.
A “new way of mining”
With a Proof-of-Space-and-Time consensus algorithm (PoST), the Chia Network is designed to prevent hoarding mining power among specific computer nodes on the blockchain. This is different from the Proof-of-Work model, which favors computers with higher processing power, and the Proof-of-Stake algorithm, which enables only nodes with a large amount of staked coin to participate in mining.
Chia Network aims to level the playing field for all miners while reducing energy consumption. Unlike the PoW and PoS algorithms, mining on the Proof-of-Space-and-Time algorithm is based on computer storage space, an easily accessible feature, rather than high computing power or staked coins.
Mining is referred to as farming on the Chia Network, and it involves two major processes, plotting and harvesting. Plotting refers to miners – farmers – allocating empty portions on their hard disk to the Chia Network. These spaces are called plots and are used to store cryptographic numbers generated by the Chia Network.
Harvesting occurs after the Chia blockchain releases a random collection of numbers known as the challenge number on the network. Farmers scan their plots using machines known as harvesters, checking if they have possessed all the digits of the challenge number.
Following this process, the plot with the closest set of numbers is rewarded with the new block in the form of XCH. On the Chia network, the more space you have allocated, the more cryptographic numbers you can store, thus increasing your chances of winning the next block.
Concerning power consumption, the PoST algorithm is considered more environmentally friendly than PoW and PoS models. The Chia Network reportedly utilizes 0.16% and 0.36% of the yearly energy consumption of Bitcoin and Ethereum, respectively. The Chia network also allows for “farmed” spaces on a hard drive to be used for conventional data when needed.
Presently, the Chia blockchain is hosted on about 400,000 computers, with the Chia coin (XCH) listed for trading on several exchanges, including Gate.io, Uniswap(V2), KuCoin, OKEx, and Huobi.
Developments on the Chia Network
Source: https://www.cryptopolitan.com/chia-coin-price-prediction/