Chia Network

//Chia Network

Chia Network

– Green money for a digital world

Chia is a blockchain based on proofs of space and time to make a cryptocurrency which is less wasteful, more decentralized, and more secure.

The traditional Bitcoin Proof of work (PoW) system requires a great deal of work from the miners to verify transactions and to add them to the blockchain. The amount of resources that are used for PoW mining raised the question if these resources can be used in a better and more useful way. The number of projects trying to solve this problem are emerging in recent months.

We recently covered Perlin, a project that wants to transform huge amount of computation power “wasted“ by miners to solve complex cryptographic puzzles into a more useful form. A supercomputer where all the computation power is used for useful tasks like advanced scientific research in numerous academic fields and industry sectors.

Chia network wants to solve the other part of the resource waste problem, the electrical power spent by miners. By reducing the need for such high computation power needed by PoW, Chia network aims to reduce CO2 footprint on the Earth and give as a green more eco friendly oriented cryptocurrency.

Protocol — Proof of Space and Proof of Time

Instead of traditional systems like Pow or PoS, Chia will be build as blockchain based on Proofs of Space and Proofs of Time. Miners, or “farmers”as they are called in Chia network, will use proof of space, co-ordinated with another consensus algorithm, proof of time, to mitigate known attacks on previous proof of space based blockchains.

A Proof of Space demonstrates that an amount of vacant disk space is allocated to a task by answering queries at low latency and amortised costs. A hard disk will have empty space filled with randomly generated proofs. Farming (Chia’s form of mining) works by taking a snapshot (seeding) of the storage available on your hard drive(s). Based on the storage as a percentage of storage available on the network, you will be given lottery type payouts for the amount you are willing to farm.

“Proof of space” should not be confused with storage protocols like Filecoin, MaidSafe, Sia, or Storj. Proofs of space are data which is useless for anything but generating proofs of space. Making a proof of space or providing a proof to the network requires essentially no bandwidth.

Proofs of time are the second step of farming. Proofs of time depend on a Verifiable Delay Algorithm that takes a certain amount of wall clock time to generate a proof, but that proof is canonically correct for the current block and can be quickly verified as correct by anyone in the network.

By implementing both proof of space and proof of time Chia will be able to achieve the same level of security while using less electricity. Each block starts with a proof of space and is finalized with a proof of time. The product of the quality of the two of them must meet the work difficulty threshold.

  • Full nodes in the Chia network will all keep the full history and a set of pending transactions. They then propagate the three weightiest histories they know of to all of their peers.
  • Once the three best proofs of space are propagated across the network rapidly, the proof of time servers start working on top of them.

After the proof of time server finishes the proof of time for a proof of space it publishes the whole thing as a fully validated block and publishes it to the network to be built on top of again.
Chia will support Lightning Network out of the box in addition to its blockchain, so payment speed will depend on whether there is an available lightning path. Bram Cohen is Lightning Labs advisor and word is that Elizabeth Stark (CEO and Co-founder of Lightning Labs) suggested that Bram and Ryan Singer start a Chia company together. Elizabeth is also a founding advisor of Chia.

Protocol — Proof of Space and Proof of Time

Instead of traditional systems like Pow or PoS, Chia will be build as blockchain based on Proofs of Space and Proofs of Time. Miners, or “farmers”as they are called in Chia network, will use proof of space, co-ordinated with another consensus algorithm, proof of time, to mitigate known attacks on previous proof of space based blockchains.

A Proof of Space demonstrates that an amount of vacant disk space is allocated to a task by answering queries at low latency and amortised costs. A hard disk will have empty space filled with randomly generated proofs. Farming (Chia’s form of mining) works by taking a snapshot (seeding) of the storage available on your hard drive(s). Based on the storage as a percentage of storage available on the network, you will be given lottery type payouts for the amount you are willing to farm.

“Proof of space” should not be confused with storage protocols like Filecoin, MaidSafe, Sia, or Storj. Proofs of space are data which is useless for anything but generating proofs of space. Making a proof of space or providing a proof to the network requires essentially no bandwidth.

Proofs of time are the second step of farming. Proofs of time depend on a Verifiable Delay Algorithm that takes a certain amount of wall clock time to generate a proof, but that proof is canonically correct for the current block and can be quickly verified as correct by anyone in the network.

By implementing both proof of space and proof of time Chia will be able to achieve the same level of security while using less electricity. Each block starts with a proof of space and is finalized with a proof of time. The product of the quality of the two of them must meet the work difficulty threshold.

  • Full nodes in the Chia network will all keep the full history and a set of pending transactions. They then propagate the three weightiest histories they know of to all of their peers.
  • Once the three best proofs of space are propagated across the network rapidly, the proof of time servers start working on top of them.
  • After the proof of time server finishes the proof of time for a proof of space it publishes the whole thing as a fully validated block and publishes it to the network to be built on top of again.

Chia will support Lightning Network out of the box in addition to its blockchain, so payment speed will depend on whether there is an available lightning path. Bram Cohen is Lightning Labs advisor and word is that Elizabeth Stark (CEO and Co-founder of Lightning Labs) suggested that Bram and Ryan Singer start a Chia company together. Elizabeth is also a founding advisor of Chia.

Chia tokens

All the Chia tokens will be premined on mainnet launch and their total number will not be finite. The coins in circulation will continues to increase at the fixed rate of annual mining but the proportion of coins minted each year perpetually goes down as a percentage of the total coins in existence. It will take approximately 153 years for the amount of Chia to double after network launch.

Chia tokens will be used as a digital currency.

Funding

Initial seed funding round took place in Q1 2018. and raised a $3.4 million by AngelList’s Naval Ravikant and joined by Andreessen Horowitz, Greylock and more.

Chia public sale will be an auction where investors choose how much they’ll bid for how many shares. The more popular it is and higher people bid, the less equity Chia will have to sell to get the $50 million. Once a clearing price is locked in, everyone who bid below it will get no shares and their deposit back, while those who bid over get their shares plus a refund of the difference between their high bid and actual price.

Roadmap

  • Chia network announced in 11/2017.
  • Seed round of funding Q1/2018.
  • Public sale in Q3
  • Mainnet Q1 2019.

Whitepaper

Chia will not have a traditional whitepaper according to Bram Cohen. They will rather have a serie of technical papers published across different refereed journals.

List of published Chia papers:

Team

While Chia is still expanding and actively hiring more people, the current team consists of 10 people, 6 of which are developers and 4 members are on the business side.

Bram Cohen, Founder and CEO at Chia Network

The author of the peer-to-peer (P2P) BitTorrent protocol, as well as the first file sharing program to use the protocol, also known as BitTorrent. He is also the co-founder of CodeCon and organiser of the San Francisco Bay Area P2P-hackers meeting, and was the co-author of Codeville.

Ryan Singer, Co-founder at Chia Network

Ryan is an accomplished entrepreneur and leader in Bitcoin, the broader open source ecosystem, academia and the non-profit sector. Ryan was Co-Founder and COO of the largest American Bitcoin exchange, Tradehill, Inc. Since Tradehill, Ryan co-founded CryptoCorp, a multi-signature security company, Blockchain Clearing, a securities clearing technology company, Blockchain Health, which does document control for clinical documents using the Blockchain and Chia Network, a crypto-currency company building a better bitcoin. Other ventures include Peace Markets, a marketplace for cross-conflict peace building, a project of the Stanford Peace Innovation Lab, The OpenDocument Foundation, The OpenDocument Fellowship, OpenOffice.org and stints working for Sun Microsystems, Starbucks and the State of Georgia. Ryan enjoys reading science fiction, studying economics and building the future.

Ali Shadle, Director Of Operations at Chia Network

Mariano Sorgente, Software Engineer at Chia Network

Elizabeth Stark, the founding advisor of Chia network, CEO and Co-founder of Lightning Labs

Elizabeth is a huge fan of open source, decentralized protocols. She taught at Stanford and Yale where her students studied peer-to-peer technology, privacy, open source software, and memes. She has been an active contributor to the bitcoin community, an advisor to startups in areas ranging from cryptocurrency to decentralized technology to AI, and is a fellow at Coin Center. She has a law degree from Harvard and is an avid listener of electronic music.

Verdict

The project lead by Brad Cohen, is trying to make a more energy efficient, environment friendlier and more decentralized digital currency. PoW system will be replaced by PoSpace with additional PoTime to mitigate previous security issues with earlier PoSspace systems.

Bram Cohen is a true star of this project, a P2P pioneer and BitTorrent creator, active contributor of the bitcoin development community and advisor of the Lighting labs. Chia is still hiring the people and we are yet to see the first results. It is too bold to think that Chia will replace Bitcoin, but a cheaper and more energy effective digital currency may find its use. If the company plan goes through, company listings on stock exchange and dividends paid through Chia tokens may form the bridge between traditional stock markets and crypto world.

By |2018-08-27T23:46:07+00:00August 25th, 2018|Reviews|0 Comments

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