What is XCH

1. Project Introduction

1. What Is Chia Network?
Chia Network is a green blockchain protocol founded in 2017 by Bram Cohen, creator of BitTorrent. It is designed to build a compliance-friendly, enterprise-grade payment and settlement network. Its core innovation lies in a hybrid consensus mechanism that combines Proof of Space (PoSpace) with a Verifiable Delay Function (VDF), replacing the computational power race of traditional PoW with the use of idle storage space. This achieves a 99% reduction in energy consumption in line with its environmental goals. The project has received investments from top-tier institutions, including a16z and Slow Ventures. Its mainnet went live in March 2021, with XCH as the native token.

2. How Does Chia Work?
Its three-layer architecture enables enterprise-grade blockchain services:
Consensus Layer: Combines PoSpace with VDF to complete network validation within 10-minute block intervals. The Chia network supports reversible transactions, and users can roll back transactions within 128 blocks (roughly 21 hours).
Smart Contract Layer: Built with the self-developed Chialisp language, this layer supports financial-grade features such as programmable asset custody and conditional transaction settlement. It includes an asset custody suite (multi-signature wallets, transfer limits, and sub-account isolation) and enables complex on-chain arbitrage without the need for flash loans.
Compliance Layer: Incorporates modules compliant with GAAP/IFRS accounting principles, as well as interfaces for transaction traceability.

3. Core Team & Funding
Founding Team: Bram Cohen (CEO): Pioneer in P2P protocols and creator of BitTorrent. Gene Hoffman (COO): Serial entrepreneur who has led multiple fintech companies through IPOs. David Frazee (CTO): Expert in distributed systems and former NASA JPL engineer.
Funding: Seed Round in 2017: Angel investment from Naval Ravikant and others. Series A Round in 2018: Led by a16z, with a valuation of $120 million. Strategic Round in 2020: Raised $36 million and planned to pursue a public listing in compliance with SEC regulations.

4. Chia Tokenomics
Token Issuance Mechanism: A low-inflation model with no hard cap and a long-term annual inflation rate of approximately 0.3%. During the first three years, 64 XCH will be created every ten minutes, with block rewards halving every three years. A total of 21 million XCH is reserved for ecosystem development and market stability.
Token Use Cases: To participate in mining, 1 TB of storage requires 0.05 XCH as storage collateral, and executing complex contracts consumes XCH. In addition, token holders can participate in adjusting protocol parameters.

5. Timeline of Key Milestones
In Q4 2024, Chia achieved 100% block utilization, with Layer 1 throughput reaching approximately 40 TPS.
Its energy consumption is just 0.16% of Bitcoin's. Meanwhile, it supports the deployment of private enterprise chains with over 100,000 TPS and reinvests its business revenue into the public chain ecosystem.

2. Team & Investment Info

3. Social Media URLs

4. Token Info

5. Related Links