A review of the Chia Network cryptocurrency. The new Bitcoin?
Blockchain Chia Network and its token XCH, this year, made a lot of noise in the cryptocurrency industry, and even though the project has been under development for several years, it became known to a wide range of users only now. Right after the launch of the network, in Spring 2021, the price of the coin grew almost to $2,000 per token, but then it went down, and now it is around $100. In this review, I will tell you what Chia is and why this project can still make it to the top of the industry.
What is the Chia Network? Chia coin price prediction 2025
Chia Network is a new generation blockchain based on the “Proof of Space and Time” consensus algorithm that uses free disk space to run the network. Chia offers a new perspective on blockchain as it implements “Nakamoto’s first new consensus algorithm since the advent of bitcoin in 2008.
In addition to a new approach to network distribution and manning, Chia’s developers introduced a programming language, Chialisp, which should facilitate the development of smart contracts and seriously compete with the Ethereum network. The token can be bought on any exchange, including dYdX.
How does blockchain and Chia coin cryptocurrency work?
Before Chia blockchain, all networks were divided by the type of mining into:
- Proof-of-work blockchains – Proof of Work;
- Proof of ownership blockchains – Proof of Stake.
In the first variant of PoW, miners, using their equipment, had to perform calculations by solving a problem; after solving it, the block was closed, added to the blockchain, and the miner was rewarded. In the second variant, PoS, miners are validators of nodes, which require network tokens to work, which provide them – nominate users by token owners. After adding a block, the validator receives the reward and divides it between the nominators who provide – tokenize, their tokens.
Both models have disadvantages; PoW has high electricity consumption due to constantly growing complexity, while PoS has poor network decentralization due to large amounts of coins often owned by funds, developers and early investors. How to mine a Chia coin? Project tries to solve both of these problems, for mining it is not necessary to have neither high performance equipment, nor large amounts of tokens.
Wallet for Chia (XCH)
There are several wallets that support Chia network, but I prefer the official wallet from the developers of the project – “Light Wallet Beta”, it can be downloaded on the official website of the project in the downloads section.
The value of Chia token (XCH) and its prospects
In May 2021, the price rose to $1,934, after which within six months it was reduced and in December it traded around $100, a decrease of an impressive 95%, while the capitalization, which reached 450 million in May, not so much decreased, but only by 35%. This clearly shows the work of the inflationary model in project tokenomics, similar can be observed, for example, in PancakeSwap and its token CAKE, you can read about it here.
Chia coin price USD – prefers
The project has 21 million coins; these coins are owned by the company, distributed to two addresses, and will be used for lending to other projects, funding promising and needed ecosystem projects, stimulating farmers and securing the network.
It is important to note that all of these coins will not be used until the company’s stock is traded on the exchange.
Chia coin news. Project outlook and Chia XCH coins
Chia coin analysis shows a good future for the project. The prices of different coins can be very different from their value, which is formed by miners’ costs for equipment and electricity. At the current price of Chia, around $100, the payback period for mining equipment is more than 7 years; usually this period is 1-2 years; this suggests that the value of the coin is now undervalued. Chia coin price prediction shows that now is a good time to buy. Also you can see Reserve rights and Harmony price prediction.
The project itself looks very promising. But it is important to remember that most of the functionality, primarily smart contracts, is not yet fully implemented. And that means that in the future we may see a lot of projects built in the Chia ecosystem. And maybe then this coin will become the new Bitcoin.