Chia Network Working towards Revolutionizing Blockchain Industry

  • Chia is predicted to become one of the finest blockchains in the future.
  • Its PoST protocol is touted to solve issues related to PoS and PoW.

Blockchains across the globe are witnessing laggards that are hindering smooth transaction throughput. While some blockchains copy similar upgrades, others are taking an imperative approach.

On March 12, 2023, the Ethereum mainnet was updated with the Shanghai Upgrade. The upgrade allowed the liquidity validators to withdraw their staked ERC20 tokens. Other blockchains like Solana and Polygon worked on similar upgrades taking EIP-4859 as the primary protocol.

Still, the risk of centralization and breach of network security kept lingering. The idea of posting a blockchain that is decentralized throughout its process and available tools was like a dream until now.

Chia network: An ideal blockchain in the making

Formed by Bram Cohen in 2017, Chia Network is a blockchain dedicated to building a decentralized platform that solves the issues found in proof-of-work (PoW) and proof-of-stake(PoS) processes.

Chia Network follows the Nakomoto consensus mechanism made by Bitcoin. The blockchain enables users to create and execute smart contracts using Chialisp. Chialisp is a customizable programming language that lets users perform cross-border payments and issue various financial assets backed by blockchain.

The network uses its native token, Chia (XCH). Developers of the Chia network believe that the blockchain will enable a global payment settlement system along with facilities like staking and liquidity making.

By using Chialisp, Chia believes that the network will broaden the network capabilities and promote an on-chain development environment.

The blockchain found proof-of-space-and-time (PoST) which is the combination of PoS and PoW. This protocol functions in two ways: rewarding users to provide the network with unused space to create blocks and adding security.

The idea behind using this protocol is to use less energy and make security codes more reliable. Since blockchain minting and providing time predictability is a very expensive affair, Chia wants to resolve this issue using PoST.

During its initial phase, the Cohen-led team sought to take a different road to acquire the necessary funds. By not choosing to raise funds through venture capital, they opted for a public raise. Chia network wished to get itself listed on NYSE or NASDAQ and hence, incorporated as a public, for-profit organization.

What will be the growth index of Chia in the coming days?

The company believed that its market value will be driven by its XCH token. As part of this strategy, the company listed its issued tokens as assets on its balance sheet.

The current price for a single XCH token is $33.20. The total supply stands at 28,542,991 tokens. Chia network began full wallet functionality and execution of smart contracts in 2021.

While the 24-hour window frame for XCH is up by 1.86%. Currently, the token demonstrates bearish sentiment, meaning it isn’t the right time to buy it.

The 21-day SMA is also signaling SELL as the token performs below the averages. Meanwhile, the 200-day SMA shows that the token will rise to approximately $37.19 by July 07, 2023.

Currently, the short-term growth indicators are bearish. Moreover, keeping a long-term view, the token is expected to expand as the Chia network brings rapid innovations.

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