Chia Network is a blockchain and smart-transaction platform aiming to improve the global financial and payment system. Chia — the native token of Chia Network that goes by the ticker XCH — is used for transactions as well as reward incentives for users.
Motivated by Bitcoin's energy-intensive proof-of-work consensus mechanism, Chia Network aims to bring a "green" cryptocurrency to promote a sustainable environment. The protocol achieves its goal by using an energy-friendly consensus called "Proof of Space and Time."
Proof of Space allocates unused hard drive space for storage use. Users who plot unused space on their hard drive are called farmers, and they participate in the block production in the Chia Network. Compared to PoW, Proof of Space uses hard drive space for block production and saves massive electricity costs. The protocol also complements Proof of Space with Proof of Time — ensuring a consistent block time and improving the overall security of blockchain.
Chia Network recently enabled trading and transaction services for XCH. Chia Network Inc. — the company behind the protocol — aims to go public by registering a U.S. SEC-compliant equity initial public offering. If the public listing is successful, the company believes that XCH will be less volatile than other cryptocurrencies, as the price of XCH on digital exchanges will mirror the company's share price in stock exchanges.
Chia Network launched its mainnet in March 2021. Going forward, the protocol aims to gain support from point of sale systems and global consumer payment applications. The protocol plans to facilitate integration among wallet providers, exchanges and merchant processing partners.