Chia Network (XCH)

Introduction to Chia Network (XCH)

The world of blockchain, when it initially came into being, was hailed as the epitome of financial innovation.

Considering its arrival in a time of massive financial decline, it was considered and largely touted to be the answer to many of the financial world’s problems.

Centralization, too many intermediaries, high fees, obscene interest rates, and so much more could be fixed.

But things were more widely driven by hype than anything else, and the problems of blockchain became quickly and broadly known.

However, that doesn’t necessarily mean that those problems mentioned earlier can’t be fixed.

It just means that blockchain still has a ways to go, if it is to fully realize its potential.

Some of the aforementioned problems include a lack of scalability followed by high carbon footprints.

Regardless, attempts at solving these issues have taken various forms, like Cosmos, Binance, Polkadot, or even Solana, all with varying methods or mechanisms.

One such network we’ll be looking at today is called Chia, which is directing all its efforts towards creating a more sustainable blockchain experience, one that leaves little to no carbon footprint, with the help of its Proof of Space and Time (PoST) consensus mechanism.

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The Technology Behind Chia

So you are probably wondering how Chia manages to be sustainable through the PoST consensus mechanism.

Simply explained, it requires two things, and these include any free disk space you may have and an internet connection if you’re to take part in securing Chia.

But on an individual level, starting with Proof of Space, it’s simply a cryptographic technique allowing provers to show that they are, in fact, allocating their unused hard drive space towards storage space.

But to be utilized as a consensus mechanism, Proof of Space has to be tied to the Proof of Time method, which sees to it that those block times maintain some consistency within the time between them while increasing the blockchain’s overall security.

But how does it all tie in with the Chia Network you may ask? Well, let’s find that out for ourselves.

To start with, Chia’s blockchain users have to “seed” the unused hard-disk drive space that they have through the installation of software that stores, into “plots,” these series of cryptographic numbers within the disk.

Also, such users are known as “farmers.” Once the blockchain broadcasts the challenge for the following block, farmers may scan those plots to check if they possess the hash that’s closest to that challenge.

The likelihood of a farmer winning a block also happens to be the percentage of a farmer’s total space that they have in comparison to the whole network.

For proof of time, there has to be a brief period of time between blocks that needs to pass.

It’s implemented by a VDF, aka verifiable delay function, which takes a specific amount of time for computation, but is quite quickly verifiable.

The main idea behind VDFs is that they need sequential computation, so having several parallel machines doesn’t yield any advantage, thus minimizing electric waste.

There’ll likely be only a handful of VDF servers, or “Timelords,” rather, since the quickest one will undoubtedly finish first, taking only a single swift and fair Timelord within the network to finish the block and move things forward.

Besides this, though, there are other technological aspects that Chia has, like Chialisp, its own blockchain programming language; however, the PoST consensus mechanism seems to be the highlight of their services, hence the reason for going through it first or focusing more on it.

XCH Tokenomics

Like practically any other blockchain network, Chia has its own native token, XCH, which serves various functions.

For one, it serves as an incentivization mechanism for farmers, in that they’re actually rewarded for their efforts in securing the network, taking part, or “farming,” as Chia likes to call it.

Secondly, it can be used as a means of awarding developers and initiatives playing a vital role in the network’s development.

Also, once Chia goes public, the token can also be used as a dividend.

Besides that, though, it’s unclear whether or not the token is used for something else, like governance, for instance, where users have a say in how things are run.

In other words, besides farming rewards, dividends, and grants, we couldn’t find any other use for the token; however, that doesn’t necessarily mean that there won’t be more use cases for it in the future.

How it’s used can change later on, assuming the project undergoes substantial evolution.
Now onto the tokenomics; the price of XCH is currently worth around $32, the market capitalization is over $331 million, and the fully diluted valuation is more than $1 billion.

The daily trading volume, on the other hand, is more than $5.8 million.

As for the supply, on CoinMarketCap, there doesn’t seem to be any maximum supply, but its total supply is over 31.2 million and its circulating supply is more than 10.2 million.

In terms of market capitalization, the token is ranked at 187, and 475 in daily trading volume.

It should be noted that the token didn’t have an ICO, but that didn’t stop it from raising private rounds to obtain the funding it needed for project development.

How to Buy XCH Tokens

So, you’re looking to get XCH for yourself? Lucky for you, there are a couple of exchanges that are offering it, like OKX, Gate.io, KuCoin, HTX, MEXC, and more.

However, do note that depending on what exchange you end up using, the process will take a while.

For instance, you may have to complete KYC depending on where you live or go through registration.

If you just want to hold some tokens, using simple swap services, like SimpleSwap, StealthEX, SwapZone, and more, where you just connect your wallet and swap whatever you currently own for some XCH may be more preferable.

But if you want to trade using advanced strategies or methods, then an exchange like OKX or KuCoin might be more suitable despite any hassles associated with buying through them.

But you have some XCH tokens with you, now what? Well, you might want to consider some storage options where those assets will remain safe from the numerous threats lurking online.

Presently, the safest you can possibly get within the cryptocurrency landscape is cold storage or hardware wallets, where your funds are stored offline—just the thing you need.

Participating in the Chia Network

Do you want to be a part of the Chia Network now? From what we’ve stated so far, besides “farming,” there’s not much else you can do.

Some governance would have been welcome, but we couldn’t find anything about that online.

Still, if you’re into sustainability and you care about the environmental impacts left by various blockchains, then what Chia has to offer may be worth your time.

Chia’s Impact on the Blockchain Landscape

It should not come as a surprise that Chia isn’t the only blockchain network out there that has sustainability in mind.

Practically speaking, any blockchain that operates using Proof-of-Stake (PoS) will already have a carbon footprint that’s vastly lower than those using Proof-of-Work (PoW), which there aren’t that many of anyway.

You have Cosmos, Polkadot, Solana, and even Ethereum now.

So, it’s hard to say whether or not it has had any substantial impact on the landscape in terms of sustainability or even scalability.

The competition is stiff, and when looking at its current rank, which we went over earlier, it’s quite below the leading contenders.

Also, taking one look at the chart for its native token will yield results that are far from positive.

It appears that the token has been in a complete slump for quite a while now.

It was trading for more than $1930 at one point! Such a massive decrease in worth is unique even within the cryptocurrency landscape.

Most tokens during the bear market were down by more than 70% or 80%.

Finding tokens that were down by more than 95% wasn’t that easy.

And after the sector managed to climb out of the bear market, with BTC even breaking its previous all-time high, reaching more than $70,000, even despite that, the XCH token failed to gain any substantial momentum.

So, from an investment point of view, things don’t look good for this token at all.

Still, the team did state that they plan on lowering the volatility of their token, but even they couldn’t have expected the value to fall to such abysmal rates.

Future Developments and Roadmap

At least in terms of the roadmap, it does not disappoint, as Chia has quite a lot planned for this year, including features like multi-signature wallets, cloud wallet enterprise, an iOS signer app, a new wallet sync protocol, and more.

Conclusion: Chia’s Role in Advancing Blockchain Technology

The Chia Network’s primary reason for launching was to address the lack of sustainability and scalability within the landscape, and so far, its efforts have been sustainable and its carbon footprint is certainly lower than that of various other blockchains out there.

Although, from an investment or performance angle, it certainly needs to pick up some extra pace.

Otherwise, it risks being left in the dust by more successful projects like Cosmos or Polkadot.

We Coin-Labs.com provides only objective information about Chia Network (XCH).
Therefore, we are not responsible for the investment decision in Chia Network (XCH) and the resulting loss.

Chia Network (XCH) Basics

Here are some factors that investors should consider before investing in Chia Network (XCH).

Cryptocurrency Features	Chia Network (XCH) (XCH)
Publisher or Developers	Chia Network Inc.
Headquarters (Registration Number)
Symbol	XCH
Platform
Published Date (CMC Registration)	2024-11-01
Max Supply	No limit

Reliability Score of Chia Network (XCH) in 2024

These are indexes mesuring the investment reliability of Chia Network (XCH) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 4 Exchanges
Number of Available Pairs Worldwide	65 Pairs
Market Cap of the Cryptocurrency	297,897,938 USD (Rank #152)

The table above shows the result of investment suitability evaluation for Chia Network (XCH).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Chia Network (XCH) Price

Here are the price and recent trading volume of Chia Network (XCH). (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Chia Network (XCH)
Chia Network (XCH) Price	13.239 USD
Price Change 24h	1.25%
Price Change 7d	-4.84%
Trading Volume 24h	8,415,147 USD
Trading Volume Change 24h	69.67%

Cryptocurrency Metadata

You can check the development status and social media information of Chia Network (XCH) through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://www.chia.net/
📖 White Paper	https://www.chia.net/whitepaper/
🛰️ Source Code (GitHub)	https://github.com/Chia-Network/chia-blockchain
🐦 Twitter	https://twitter.com/chia_project
🤖 Reddit	https://reddit.com/r/chia
🎺 Message Board	https://www.chia.net/blog/

Where to Buy Chia Network (XCH)

Here are the top ten world crypto exchanges where traders can buy Chia Network (XCH) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Listed	https://www.kucoin.com/trade/XCH-USDT
Bitfinex	Not listed
OKX	Listed	https://www.okx.com/trade-spot/xch-usdt
Huobi	Listed	https://www.htx.com/trade/xch_usdt
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Listed	https://www.gate.io/trade/XCH_USDT

Frequently Asked Questions