Chia Network intends to offer software support and services for its free software blockchain and intelligent transaction software to governments, financial firms, companies, and significant storage purchasers and sellers. Chia also intends to encourage the grassroots creation of DeFi, DeX, cross-border transactions, and other end-user wallet innovations in order to accelerate the development of new applications that have yet to be imagined but are only possible with safe, distributed programmable money. Our technology will allow these developers to create apps, programs, and wallets that are far more user-friendly than prior versions.
The Company thinks that the value of the assets held on its balance sheet will initially represent its enterprise value. As our enterprise software business expands, they think their software service and support business will add to the Company’s enterprise value and assist accelerate greater adoption in commerce and worldwide. The Chia Network balance sheet should enable the Company’s publicly listed shares to act as an ETF for chia coins. The Company anticipates that the price fluctuations of chia coins on digital money exchanges will coincide with its equity valuation in a public market.
Chia Network released Beyond Hellman’s Time-Memory Trade-Offs with Applications to Proofs of Space at BPASE ’18 in January 2018 and received a $3.3 million seed round of investment in March 2018. Naval, A16Z, True Ventures, Greylock, Galaxy Digital, Metastable, and other investors participated in the round. We presented Simple Proofs of Sequential Work in May 2018, which won the best paper at Eurocrypt 2018.
The Company delivered the blockchain beta in April 2019, which contained complete wallet functionality, transactions, and smart currencies on the testnet blockchain. Thousands of engineers and members of the community have installed Chia Network’s blockchain software and are running nodes on the testnet network.
The Company launched its new consensus algorithm in November 2020, based on a concept from the article Proof-of-Stake Longest Chain Protocols Revisited, which was presented in February 2020 at Stanford Blockchain 2020. The authors of this study later independently validated the original Chia consensus security assurances in their book Everything is a Race and Nakamoto Always Wins, which was released in May of 2020.
Development of Basis
The Chia Network blockchain is based on a novel Nakamoto consensus technique known as Proof of Space and Proof of Time. These new solutions do not necessitate the large quantities of power and dedicated hardware that Proof of Work has come to necessitate. Chia Network’s blockchain (and chia) are meant to be a “green,” environmentally friendly alternative to Proof of Work. Unused space is a commodity that is broadly dispersed, asic-resistant, and oversupplied. Electricity prices are mostly irrelevant to storage operations and will become even less so when consumer SSD prices fall below hard drive pricing. They expect chia farming to be more decentralized than Proof of Work or Proof of Stake, as well as substantially less energy and resource-intensive.
