Welcome to one of the most exciting sectors in crypto. Yes, that’s right, I’m talking about RWA, DePIN, and AI. Once the bull run finds its next leg up, these three sectors should do well.
So, any altcoin that covers one or two of these sectors, is worth keeping an eye out on. I find myself in the position to introduce you to an altcoin that covers both the DePIN and RWA sectors. This project does things slightly differently. For example, it has a unique consensus mechanism, PoST. That’s ‘Proof of Space and Time’. This means that I’m talking about the Chia Network. So, let’s take a closer look at this network.
What Is Chia Network?
The Chia Network has already been around since 2017. It has two founders, Bram Cohen and Ryan Singer. Now, Bram Cohen is the person who gave us the BitTorrent network. With BitTorrent, you can download internet files.
So, this altcoin stands out because of its unique consensus mechanism. It’s called “Proof of Space and Time” or PoST. By using this mechanism, it’s one of the most decentralized blockchains around. Currently, it has almost 100,000 nodes across over 150 countries. It also uses its programming language, Chialisp. It has two separate proofs:
- Proof of Space — This uses unused disk space. It also rewards owners of empty disk space for ‘farming’ new blocks. This is part of its DePIN roots.
- Proof of Time — This adds security and time predictability to the network. Adding this mechanism reduces the attack points associated with Proof of Space.
Source: X
Their mainnet is live since 2021. It also has its native token, $XCH. Instead of mining it, you need to farm it. The only thing you need to do this is to have empty hard disk space. So, no need for specific hardware or expensive electricity. However, Chia Network offers:
- Security-first approach — With decentralized technology.
- Regulatory compliance — This offers better consumer protection.
- Sustainability and inclusivity — It’s scalable and offers energy-efficient technology. Chia likes a green approach.
For example, the CAD Trust uses the Chai chain. This harmonizes carbon registry data for transparent and efficient carbon accounting. Chia Network works in and for various industries. For example:
- Climate.
- Luxury — It protects brand integrity.
- Enterprise — Makes business workflows more efficient.
- Government — Foster trust and global collaboration.
Source: X
What Does Chia Network Offer?
Chia Network has some features that make it all work. So, let’s take a look at these features:
- A virtual private blockchain: How about having all the controls and privacy of a private chain? At the same time, you also get the security and immutability of a public blockchain. A great solution for enterprises.
- DataLayer: This is a decentralized data store. It’s resistant to fraud and interference. For example, transparent AI training data, or in medical or provable land records. So, supply chains, real estate, financial markets, or intellectual property can use this.
- NFTs: Create NFTs on Chia Network. This comes with mint options, built-in royalties, or a marketplace.
- CODE: The Chia Open Digital Economy (CODE) or their metaverse version. This includes ChiaTCG, a trading card game.
Chia Network and RWA
One of Chia Network’s pillars is RWA. This is a sector to keep an eye out for. For example, BlackRock is investing heavily in RWA. Their CEO, Larry Fink, sees tokenization as “the next generation for markets”.
BlackRock is one of the biggest financial management companies in the world. They’re one of the firms that offer $BTC spot ETFs. They’re also in line to start offering Ethereum spot ETFs. Their revenue in 2023 was $17.8 billion.
Source: X
So, Chia Network has the infrastructure in place to accommodate RWAs:
- DataLayer — Governments and enterprises use this. For example, through the CAD Trust and the World Bank. They both use Chia’s tech.
- Carbon credits — Chia tokenized and sold verified carbon credits with the IFC. That’s a member of the World Bank.
- Decentralized — Almost 100,000 nodes in 150 countries. A secure option for RWAs and DeFi.
- One market — A global, 24/7 trading option without the need for traditional liquidity pools.
- Farming $XCH — This uses only 1% of the mining energy consumption of Proof-of-Work models.
Source: X
This allows secure transactions on any RWA option you choose with this altcoin. To put this in perspective, BlackRock sees RWA as the next major mechanism in finance. The Chia Network is ready to handle this.
Chai Network News Updates
A lot is happening at the Chia Network. Updates and news keep coming in hard and fast. Here are some selected news updates by Chia Network:
- The ASIC Timelords: The Timelords help to secure the Chia Network. They create sequential proofs of time. They broadcast around every 9 seconds. What this does is provide “deterministic randomness”. In other words, this decides the winning proofs of space. So, it’s part of their consensus mechanism.
Each timelord sandboxes in its private network. This reduces attack opportunities and increases security. So, the ASIC Timelords are specialized hardware devices. These are faster than traditional CPU-based Timelords. Hence, they are more secure as well, since they’re too fast for malicious actors.
- Update roadmap: The team keeps busy. This translated among others to an updated roadmap. Their main item here is a new SaaS. That’s their Chia Cloud Services Platform. This includes, for example:
- Escrowless trades.
- Multi-sig vaults.
- P2P trading to developers. There’s no need to build bespoke technology in Chialisp.
Source: X
This went hand-in-hand with their new cloud wallet infrastructure. It also increases the scalability and flexibility of the blockchain. Furthermore, it enables new features, sophisticated ownership, and custody configurations. With this cloud service, Chia Network offers the option for secure RWA transactions. It’s also a foundation for true DeFi.
So, did you already know about Chia Network? If so, let me know in the comments which feature you like best.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
