I will publish and update some articles about cryptocurrency mining machines and maintenance tools, hoping to be helpful to all mining machine enthusiasts.
Chia, which has skyrocketed more than 200 times, is still an excellent time to get on the truck for mining?
Known as “Green Bitcoin,” Chia has been aware of the high energy consumption of Bitcoin since August 2017, so its mining method has changed from graphics card
mining to hard disk mining, avoiding the high degree of centralization of Bitcoin mining. In addition to the drawbacks of high energy consumption, the definition of “green bitcoin” is also highly consistent with the current national policy of “carbon peak and carbon neutral.”
At 2 a.m. on May 4, 2021, Chia was launched on the world’s famous trading platform OKEx and several second-tier trading platforms. There are reports that: XCH has a minimum quotation of 495 USDT and a maximum 2500 USDT, an overnight surge of 500%. As of May 7, 2021, the price of XCH has stabilized at around 600USDT. It is not difficult to speculate that the ups and downs of the price curve after the listing are due to the early miners’ selling pressure.
So is Chia, which is growing at such a rapid rate, still worthy of miners’ participation in mining? Is it still a good time to get in the car? The editor conducted a wave of analysis on this project, hoping to help friends who want to invest money in mining vehicles.
1. Chia white paper analysis
1. Basic content of Chia
Chia is a brand new public chain that can delay and revoke transfers of digital assets. This function can derive many applications. Chia’s goal is to become the first publicly tradable “ETF-like” encrypted asset and become an encrypted asset used by sovereign states, financial institutions, and enterprises in daily business.
It is reported that the leading network of the Chia project was just launched on March 19, 2021, with a total issuance of 42 million pieces. The annual output for the first three years was 3.3 million pieces. Currently, only 400,000 pieces of XCH have been dugout. And Chia does not have private equity and currently only obtains it through mining channels, but the team has a pre-mining mechanism. The popularity of Chia is soaring, and the miners in the first stage of mining have gained a lot of money.
2. Chialisp underlying language analysis
Chia technology innovatively invented a new programming language-Chialisp. According to the official description, Chialisp is an intelligent transaction programming language launched by Chia, powerful, easy to audit, safe, and reliable. Currently, available reference innovative transactions are atomic swap, authorized payee, recoverable wallet, Multisig wallet, and interest rate limit wallet.
The most important feature and most significant advantage of Chialisp are that it retains the UTXO model and adds the function of the Ethereum Solidity model, which is more powerful.
Chialisp’s first type of object is an asset, and a transaction becomes a quick adjustment of destroying some objects and creating others. In Bitcoin, the transaction is the first type of object, and Token (UTXO) is expressed as a transaction ID and output number. The transactions in Chialisp happen at the same time. Chialisp programming dramatically simplifies the format of Token (UTXO), including only the primary input, puzzle hash, and quantity;
At the same time, Chialisp is a Turing-complete language. Because the execution is short-lived, it will be much simpler than Ethereum’s Solidity model. Chialisp language has the necessary primitives for calculating Token ID, and Token can declare its ID, supporting explicit self-referencing, which can effectively avoid using the self-generated program, Quine.
3. Analysis of the Token Economic Model of Bitcoin and Chia
The total number of Bitcoins is 21 million, and the mining rewards are halved every four years. Chia’s incentive mechanism directly refers to the reward mechanism of Bitcoin, so the total amount of farming rewards given by XCH is also 21 million, and the farming rewards are halved every four years. However, the total issuance of Chia is 42 million XCH because when the leading network is launched, Chia set up 21 million XCH for pre-mining.
4. Chia pre-mining analysis
The 21 million XCH pre-mined by Chia serves as a strategic reserve. The strategic reserve will not be used for sale and distribution. The company intends to use the strategic reserve for but not limited to the following purposes:
(1) Lend Chia to governments, financial institutions, market makers, and companies for China-related projects, such as asset issuance, payment of international invoices, and liquidity on various digital asset trading platforms;
(2) After publicly registering the equity, use Chia to fund shareholder activities, such as repurchasing shares or distributing dividends to shareholders;
(3) Use Chia to invest in promising projects to expand Chia’s function and influence in the asset and financial technology market, but cannot invest until the project is publicly registered;
(4) The project party may use Chia to increase additional farming rewards (Farming) or otherwise encourage farmers or developers to verify or develop networks or software.
5. Overall analysis
From Chia’s white paper, it can be seen that Chia’s Token issuance model is similar to that of Bitcoin, and the leading “green Bitcoin” is out of the circle, which often makes people overlook the strength of Chia’s own technology and investment lineup.
Technically, he created the first new Nakamoto consensus algorithm since Bitcoin and wrote a new programming language, Christ, which made up for all the shortcomings and deficiencies of the two public chains of BTC and ETH. Coinbase and A16Z lead the investors, the top venture capital firms on Wall Street.
The 21 million tokens held by the team pre-mined are currently being used prudently in compliance with regulations.
2. Analysis of the value of funds invested by Chia
1. The official website data shows that the output of a single T has dropped sharply, and the computing power of the whole network has increased rapidly