Chia Networks Launches 'chia' - An Energy Efficient Bitcoin Alternative

Chia Network Inc, an energy-efficient blockchain network aiming to overcome the drawbacks of traditional cryptocurrency platforms such every bit Bitcoin and Ethereum has announced its native digital currency chia today. The declaration was widely expected after reports surfaced final calendar week for a Monday launch. Through chia, Chia volition reward 'farmers' (analogous to miners) with coins in return for providing their storage disks for financial transactions. The process stands in precipitous contrast to Bitcoin mining, which uses Graphics Processing Units (GPUs) for mining, with chia using storage space oftentimes from Solid Country Devices (SSDs).

Chia Network'due south chia Cryptocurrency Aims To Resolve Traditional Constraints of Mining

The company expects chia will be adopted by governments and financial institutions globally, and today'south annunciation comes afterwards Chia Network released the mainnet for its public blockchain in mid-May. Post-obit the release, the company had frozen transactions on the network equally it tested and validated its systems for network security.

After the mainnet launch, Chia Network has two years before investors in the firm will exist able to cash in on their investment through its chia reserve. This will occur in the case that the company does not file a registration statement within ii years and if it does non become a publicly-traded company inside a year of filing the argument. Since its inception, Chia Network has raised roughly $16 million through investor funding.

Its strategic reserve will consist of 21 million chia (XCH), which will serve as the main source of strategic funding until the firm lists publicly. Every bit opposed to Bitcoin Ethereum, chia will exist a rare cryptocurrency that is managed by a publicly traded firm, with Chia Networks having announced its decision to listing either on the NASDAQ or the New York Stock Exchange (NYSE). The precise date for this list is uncertain, simply information technology has to be inside three years from now if Chia does not want its investors to liquidate its chia reserves to redeem their investment.

Every bit of May ane, chia has used more one Exabyte of installed storage capacity. 1 Exabyte equals roughly one billion gigabytes. Image: Chia Networks

Other functions for the strategic reserve, according to Chia Network, are:

Lending: The company intends to lend XCH to their customers and marketplace makers for use in day-to-twenty-four hours commerce and creating liquidity in the market.

Additional Farming Rewards: The visitor tin offer special bonuses to Chia farmers. As an example, it plans to reward farmers in the final pre-launch farming contest with XCH in one case transactions are enabled on mainnet.

Investing: Making investments in promising developers, platforms, and service providers creating applications and tools for the Chia blockchain.

Share Buybacks: Similar to a dividend. When chia is traded, the company may offer to redeem equity through the payment of XCH to stockholders.

Dividends: The company, solely at the discretion of the Board of Directors, may dividend XCH directly to its stockholders to, in part, encourage the apply and promotion of Chia Network's blockchain.

The launch of an culling cryptocurrency has resulted in companies starting to innovate products designed specifically for chia farming. For example, Chinese figurer storage manufacturer Jiahe Jinwei will produce cryptocurrency farming SSDs, as the number of storage devices using the network rapidly increase during the new cryptocurrency'due south early adoption stage.

The majority of need for SSDs to farm chia is in Mainland china as the country'south digital platforms started to report enterprise-course disk shortages early final month. With chia now existence publicly bachelor, analysts worry that the currency will create shortages similar to those faced past gamers after cryptocurrency miners bought the majority of products from NVIDIA Corporation and Avant-garde Micro Devices, Inc - an upshot that depressed the market place once the initial crypto-mining 'blast' settled.