July 12, 2018
- Proof of Capacity algorithm is a better one than Proof of Work while keeping all of the PoW economic positives. Other consensus algorithms are good on paper but risky on market, they might not work out in real life. PoC will work.
- Tech forked from BTC, it has same liveliness as BTC, better finality (3 block/15 minutes).
- Tech has better decentralization than BTC due to its consensus algorithm. Mining Chia is economically inviable unless you have empty storage sitting around. So huge Chia farms aren’t expected.
- Chia will have all improvements made for BTC, including lightning network.
- They will Apache license the code and open source it before mainnet goes live.
- It has its own version of Bitcoinscript called Chiascript. It will help softforks.
- They claim it can’t be hard forked. (Haven’t verified)
- Team has 8 engineers. People from pycoin, bitcore, academics, math, cryptography.
- Checked their academics and advisors, they are researchers with serious amount of publications in respected journals.
- They aren’t planning or doing anything for marketing and user adoption at the moment. They probably won’t do until 2019.
- CEO is founder of BitTorrent in 2004. Which is the most used distributed system in the world. They raised $35M. BitTorrent used 30% of all internet traffic at some point.
- The company is doing a completely unique funding model where they own the entire premine of the coin and distribute this to investors based on their company share ownership.
- 1 Chia will be given out per company share.
- Genesis block will have 21M coins, will be mined up to 42M. But it will take 153 years. (Haven’t verified)
- This system makes it really clear and easy in terms of regulation, nothing can go wrong, everything by the book.
- Public sale is planned to happen at summer 2018.
- 1 time dividend will distribute all tokens to company shareholders. 4M will be kept by company 10M will be kept by founders, employees, advisors. These will be vested in 4 years. 4M-7M shares will be issued to investors.
- All token amount will be divided by the amount of money raised. So 1M token => $1M or 1M token => $100M.
- Raising $150M, planning to use this money in the next 5 years. Minimum $250K entry in presale. Maximum $250K in public sale at summer 2018.
- Other cofounder founded 3x B2B cryptocurrency companies before.
- Their strategy is getting good institutional investors. In public sale they’re targeting as many investors as possible to get wide adoption.
- Compatible with BTC transaction architecture, so institutions adding Chia will be fairly easy.
- Started conversations with mobile wallets and multi wallet companies.
- Very strong team backed by Naval, a16z, Greylock.
- This is the most legit coin after Stellar and Cardano. I’m expecting similar returns, unless it gets too oversubscribed early on.
- This is clearly better than PoW in multiple dimensions. Economic incentives show that this is a possible BTC killer. (Possible = 5%)
- At the very least this is the BTC alternative we deserve, not Bcash.
- Coinbase might list Chia after its launched. Because they already have 3 legit BTC forks. (Chia is the easiest coin they can list. Much much easier than listing XRP, XLM, ADA, XMR, IOTA, EOS because of security and organization issues)
- Governance network will have few softforks. People can propose softforks? (Haven’t verified)
- Finality part compared to BTC isn’t clear, how will they achieve better finality?
- The only strong risk is miners trying to fuck up Chia and stop them using their connections. (They can’t fuck this up by trying to do a network attack, they won’t have the harddrive space)
- Raising too much money limits the ROI possibility here.
- No work on code or product has been done yet except theoretical academic work.
Early in progress but has strong indicators that Chia can become one of the market winners.