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Chia aims to take on Ethereum and Solana with NFTs. Will they bloom? – Decrypt

In short

  • The Blockchain Chia network has launched its first NFT standard on the mainnet.
  • Gene Hoffman of Chia Network says it offers advantages over Ethereum and Solana, which have thriving NFT markets.

Ethereum currently rules the NFT market both in trade volume and in high-value projects, with a growing rival Solana behind on both markers. But there is a new entrant that aims to deliver where it claims the two competing blockchain platforms fall short: chia.

Chia turned heads in the crypto space in the spring of last year, offering a new kind of storage-based alternative to blockchain security and mining that it says made it a “green” alternative to Bitcoin and Etherum.

Now, the platform wants to bring that same philosophy to NFTs.

Today, Chia announced the launch of its so-called NFT1 standard on the mainnet, just weeks after the rollout of the initial NFT0 standard on testnet. Talk with DecryptChia Network Director, President, and COO Gene Hoffman suggested that the new NFT-enabled platform would be more environmentally friendly than Ethereum and more stable than Solana, which saw periods of unavailability since last fall.

“What’s exciting is that I think people see this as a real opportunity to have a greener option than proof of workespecially since Ethereum may or may not move for fusionhe said of the NFT rollout, “and a technologically capable blockchain that has never had a downtime doesn’t hurt either.

The environmental impact of Ethereum has been intensely debated amid the rise of the NFT market, and fusion that Hoffman mentioned – a shift to energy saving proof of stake consensus model – has been on the horizon for years. It is currently scheduled for August this year.

After taking aim at the latest Ethereum update, Hoffman doubled down on his review of Solana, adding, “We’ve seen Solana’s technical acumen lately, and it hasn’t been very strong.”

However, the longest periods of network downtime came amid overwhelming demand from automated bots, including a spike up to 6 million transactions per second sent to try to play an NFT mint.

With NFT support just going live, Chia doesn’t seem to have been so extreme tested – and for one, Solana is attempt to resolve known stability issues.

Could Chia really meet the demand for a hot NFT project, with or without robots trying to overwhelm the process?

After all, Chia currently processes around 30 transactions per second (TPS), while Solana can reach thousands. Hoffman admitted that some sort of Layer 2 scaling solution would be needed to process NFT mints at a faster rate than Chia’s TPS brand currently allows.

But he also suggested that Chia is designed for different needs than Solana, pointing to a recent post from Chia’s blog regarding the so-called blockchain trilemma— that a blockchain can only be two of three things: secure, decentralized, and scalable (or capable of handling a significant amount of transactions). Chia opted for the first two.

“As layer-1 [blockchain], by focusing on businesses, governments, and multilateral use cases like the World Bank’s Climate Warehouse, we intentionally focus on security and decentralization,” Hoffman explained. “Our network simply has a vastly different function and purpose than a network like Solana.”

NFT tracing support

An NFT is a blockchain token that serves as proof of ownership of an item, and they are often used for digital goods such as artwork, collectibles, and video game items.

The NFT market raised to $25 billion value of transaction volume in 2021, according to data from DappRadar, and this momentum postponed to 2022 before the recent broader crypto market decline this also had an impact on NFTs.

With NFT1 standard, Chia Network claims it offers improvements on Ethereum and Solana NFT functionality, such as providing what it says is a clearer picture of an NFT’s provenance via a decentralized identifier (DID), as well as enabling better permanence of NFT-related assets.

Chia exists System of offers also allows direct exchanges of self-curated NFTs between users without intermediaries or exchanges, while respecting creators’ royalties.

“As part of our goal to drive adoption, we know that the ability to tie your identity, on-chain royalties, and Chia offers are new and important functional components for the future of NFTs,” said Richard Tsao, vice-president. President of NFT Business Development at Réseau Chia.

Chia was created by Bram Cohen, the author of the peer-to-peer protocol BitTorrent, with the launch of the network’s XCH cryptocurrency in May 2021. Rather than requiring super-powerful PC hardware for a power-hungry mining model , Chia and time’s “proof of space” consensus mechanism is built around users’ storage space.

Network “farmers” (or miners) set up “plots” on their hard drive or SSD drive to help secure the blockchain platform and potentially earn token rewards in the process.

Chia claims the network uses considerably less power than Bitcoin’s or Ethereum’s proof-of-work mining models, respectively, although the clamor around farming last year has led to concern about potential e-waste prematurely worn out storage drives. Cohen and other Chia representatives have pushed back on reports on the impact of agriculture on electronic waste.

To mark the launch of the NFT1 standard, Chia Network will offer up to 10,000 Chia Friends NFT profile pictures to farmers. Chia Friends, shown at top, remember Ethereum popular project Moonbirds in aesthetics, but it apparently encompasses a wider range of pixelated creatures.

NFTs will be randomly distributed among farmers who submit a submission to the Chia Friends website. On-chain royalties from secondary sales will be donated to the groundhog recovery foundation. Groundhogs are a memorable favorite within the Chia community, Hoffman noted, with Marvelous Marmots and space marmots NFT collections on the horizon.

A flourishing NFT market?

Tsao believes that community NFT projects will be among the first to adopt Chia’s NFT standard, along with digital artists who were unhappy with existing platforms. Hoffman added that he anticipates that after an initial focus on artwork, the creators of Chia NFT would then start exploring other use cases, such as video and music.

He said Chia Network started talking with larger organizations in late 2021 about NFT’s perspective on Chia, but such initiatives could take time now that the infrastructure is online. It could take a year or more for major companies to move into the space, Hoffman estimated, adding, “They’re not going to move as fast as individuals.”

After last year’s buzz around the launch of XCH and Chia farming, Chia Network has spent the last few months developing technologies and use cases on the platform.

It launched Chia Asset Tokens (CATs) – similar to Ethereum’s ERC-20 token standard – and a US dollar pegged stablecoin called USDS in partnership with Steady, as well as Chia offers. As Hoffman mentioned, Chia Network has also in partnership with the World Bank on its Climate Warehouse initiative, enabling a blockchain platform for trading carbon credits.

Hoffman said Chia has hovered around 25-30 exabytes of storage securing the network so far in 2022, though the current tally is about 22.5 exabytes— and that the network now has between 150,000 and 200,000 active farmers.

And unlike many cryptocurrencies lately, XCH is up in the last 30 days, pumping 27% during this duration.

With the launch of NFT1, we will see how quickly compelling NFTs take root on Chia and whether a market capable of challenging longer-standing heavyweights like Ethereum and Solana really grows over time.

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#Chia #aims #Ethereum #Solana #NFTs #bloom #Decrypt

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