What Is Chia Network and How to Buy XCH?

Here’s an interesting fact: more nodes are equal to more decentralization which means the network is more secure from third-party attacks. One network leveraging this fact with over 100k nodes operating in 150+ countries is “Chia Network.”

This is a comprehensive article about Chia Network and its native token, XCH.

What Is the Chia Network?

Chia Network is a blockchain that allows for developing and operating smart contracts written in a unique programming language called Chialisp. Chia Labs developed Chia Network. Chia was founded in 2017 by Bram Cohen to expand upon the Nakamoto consensus concepts established in Bitcoin. In particular, Chia is based on a one-of-a-kind consensus method called Proof of Space and Time. 

The Chia Network utilizes a more traditional structure than the cryptocurrency-native DAO model, which is the framework of a joint-stock company. To be more explicit, the founders of Chia Network believe that taking the company public on the stock market will better reflect the company's interests.

The Chia Network has built a platform incorporating high-grade security into its fundamental capabilities. The code is open-sourced. And the community has already thoroughly reviewed it. In addition, the developers have held a Hackathon to conduct additional research on the safety measures built into the system. A Hackathon is a competition in which hackers compete to gain prizes by figuring out ways to get into computer networks.

What Is XCH Coin?

The XCH coin serves as the network's native utility token. This token is given out as a reward to users to incentivize them to participate. Additionally, to interact with any of the development elements of the Chai Network, users need to hold or stake the XCH tokens.

Current trading price: $33.86

Market capitalization: 768.11 million dollars

Total supply: 22.58 million

33.38% of XCH coins are currently in circulation.

History of Chia Network

Bram Cohen, the man who developed the BitTorrent network, is also the founder of Chia Network. It started in August 2017. Since the company's beginning, the primary emphasis has been expanding Chia Network's blockchain. Chia made its first open-source library available to the general public in August 2018.

Although the public availability of the blockchain was initiated in March 2021, some limitations were initially placed on users' capacity to conduct transactions. These limitations lasted for a short time, and by May 2021, the main net was functioning without any restrictions at all. 

Features of Chia Network

Colored Coins

The Chia Network uses unique Colored Coins, each with a fantastic collection of features. These assets are equipped with the whole set of smart transaction capabilities available on the Chia Network blockchain. 

Colored Coins make it easy for monetary institutions, corporations, and governments to issue assets stored on the blockchain. The ownership of subscriptions can also be managed by developers using these tokens.

NFTs

The Chia Network has several newly launched NFT programs, including Chia Friends and Marvelous Marmots. The Chia blockchain features a customized NFT marketplace for trading as well as a 'Mint Garden' where anyone can mint their NFTs. As the demand for NFTs continues to grow, the price of XCH will likely increase. This is because XCH is the native currency of the Chia Network and is used to pay for transactions and fees on the network.

Solo Farming

One way to earn rewards with Chia Network is to solo farm. This means that the user is responsible for finding blocks on the blockchain and earning the rewards associated with those blocks. To solo farm, a user will need a computer with storage space. This is because the Chia Network uses a Proof of Spacetime consensus mechanism, which requires farmers to store a large amount of data to participate.

Pool Farming

If a user does not have a lot of storage space or does not want to be responsible for finding blocks, they can pool farm. This means a user will join a group of other farmers and pool the resources. When a block is found, the rewards will be distributed to the pool members based on their contribution.

Staking

Another way to earn rewards with Chia Network is to stake the coins. This means users will lock their coins up for some time and earn rewards in return. The amount of rewards a user makes will depend on the length of time he stakes coins.

Lending

Users can also earn rewards with the XCH token Chia Network by lending the coins to others. This is a newer way to earn rewards, and it has yet to be as widely available as solo farming, pool farming, or staking. However, earning passive income with the XCH token coins is possible.

What Makes Chia Unique?

Chia's approach to governance distinguishes itself from those of other public blockchains in that the ownership of currency plays no part in determining the outcomes of the network.

A traditional corporate structure governs Chia Network (XCH) tokens. It also takes the unusual approach of integrating an adapted Proof-of-Work consensus mechanism with Proof-of-Time. These mechanisms make it an innovative kind of cryptocurrency. 

How to Buy and Trade XCH Tokens? 

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including XCH, users can now trade easily and seamlessly. 

To buy an XCH token, you must create an account on CoinEx.

If you already have a CoinEx account, this is how to purchase and trade XCH tokens on CoinEx:

1. Deposit Funds: Once you log in, deposit funds into your CoinEx account via any supported cryptocurrencies or deposit methods available on the exchange. With funds in your account, you can execute trades seamlessly.
2. Navigate to XCH Trading Page: After funding your account, navigate to the dedicated XCH trading page on CoinEx. A search box will help you locate XCH trading pairs on the spot trading page. Simply enter the term "XCH" to find the associated trading pairs.
3. Select a Trading Pair: Choose the trading pair XCH/USDT to trade XCH against USDT (Tether).
4. Specify the Purchase Amount: The next step is to specify the number of XCH you want to buy. You can buy them at the current market price or set a limit for your preferred buying price on the trading page.
5. Execute the Trade: Once you have specified the amount, proceed to execute the trade. Confirm the details, and if they are satisfactory, submit the order.