In this article, we will give general information about Chia Network and do a price analysis.
What is Chia Network?
Chia Network is a blockchain and cryptocurrency platform created by Bram Cohen , the renowned creator of BitTorrent. It aims to provide a more energy-efficient and environmentally friendly alternative to traditional cryptocurrencies like Bitcoin .
The Chia Network utilizes a unique consensus algorithm called “Proof of Space and Time” (PoST) instead of the energy-intensive “Proof of Work” (PoW) used by Bitcoin . This algorithm allows participants to use their unused hard drive space as proof of their contribution to the network ‘s security and transaction validation process.
In Chia Network , the native cryptocurrency is called “chia ,” which can be obtained through farming rather than mining. Farming involves allocating storage space on your computer or external drives for storing cryptographic plots that contribute to securing the network .
Chia Network aims to address some of the scalability, high-energy consumption, and centralization concerns associated with traditional blockchain Technologies . By utilizing Proof of Space and Time , it seeks to offer a greener approach while maintaining decentralization and security in its operations .
How Does Chia Network Work?
Chia Network operates on a unique consensus algorithm called ” Proof of Space and Time ” (PoST) , which differs from the energy-intensive “Proof of Work” (PoW) used by Bitcoin. Here’s how Chia Network Works :
- Plotting : The process begins with plotting, where users allocate unused hard drive space to create cryptographic plots . These plots contain solutions to complex mathematical puzzles generated by the network .
- Storing Plots : Once the plots are created, they are stored on hard drives or external storage devices . These plots serve as proof that participants have contributed their storage capacity to the network .
- Farming : Participants in Chia Network engage in farming rather than traditional mining to earn chia coins. During farming, nodes scan their stored cryptographic plots for eligible proofs based on time intervals known as challenges set by the network.
- Proofs and Rewards : When a node finds an eligible proof within a challenge interval using its plotted space , it can submit this proof to win rewards in chia coins.
- Security and Consensus : The PoST algorithm ensures that participants with larger amounts of allocated disk space have greater chances of finding valid proofs while maintaining decentralization and security within the network .
- Transactions and Smart Contracts : Similar to other blockchain platforms, Chia Network enables users to perform transactions using chia coins and execute smart contracts for various applications .
By leveraging Proof of Space and Time instead of Proof-of-Work, Chia Network aims to provide a more energy-efficient alternative while ensuring secure transaction validation and decentralization within its ecosystem .
Price Analysis :
XCH coin, which was traded at $ 2509 on May 03, 2021, entered a downtrend and the price was withdrawn to $ 26.60 until June 6, 2022. It has been trading between $ 47.47 and $ 26.60 for a long time. As long as the price cannot stay above $ 47.47, it will continue to consolidate in this region. In order for the rise to begin , the $47.47 level must be crossed with volume candles. Our horizontal supports should be followed as resistance in possible rises .
Our support point: $26.60, our sequential resistances: $47.47 – $83.66 – $145.20 – $298.33 – $671.51 – $1709