Chia Network

Chia Network
Company typePrivate
IndustryCryptocurrency
Founded2017
FoundersBram Cohen, Ryan Singer
Headquarters
South San Francisco, California
,
United States
Key people
Gene Hoffman (CEO), Bram Cohen (CTO and Co-Founder)
Websitewww.chia.net

Chia Network Inc. is a US-based blockchain technology company. The company built the Chia blockchain that uses proof of space and proof of time consensus protocols and issues the digital currency Chia (XCH). Chia Network was founded in 2017 by Bram Cohen, the creator of BitTorrent, and Ryan Singer. Its headquarters are in South San Francisco, California.

Company overview

Chia Network is based in South San Francisco, California. Bram Cohen took over as chief executive officer (CEO) when Ryan Singer left in June 2019.[1] In 2023, Gene Hoffman succeeded Cohen as CEO; he previously held the role of chief operations officer.[2] Cohen transitioned to the role of chief technology officer.[3]

The Chia blockchain runs on the company's programming language Chialisp.[4]

Chia token

Main article: Chia (cryptocurrency)

Chia Network's native digital currency is the Chia (XCH) token. Users allocate unused storage space on their computers to operate the Chia blockchain and the proof of space and time consensus protocol. The company calls this process "farming" and rewards users with XCH tokens.[5]

History

Chia Network was co-founded by Bram Cohen, the creator of BitTorrent, and Ryan Singer in 2017.[6][7] Cohen said he was inspired by Bitcoin and the rise of cryptocurrency, and that he believed digital currencies would be safer, faster, and create more financial autonomy. He also had reservations about the various issues surrounding cryptocurrencies, such as the energy consumed in bitcoin mining.[5] He created the Chia Network in an effort to design and launch the Chia blockchain, which used unused hard drive space, which would consume less energy than the proof of work protocol commonly used by blockchain networks.[8]

In 2018, Cohen raised $3.4 million in seed funding.[9] Chia Network released a beta version of its blockchain and native token, XCH, to developers in April 2019. By the end of 2020, the network had 1,700 nodes. Following an early 2021 funding round in which Chia Network raised $61 million, the company was valued at $500 million. Investors in the company include Andreessen Horowitz, Naval Ravikant, Breyer Capital, and others.

By 2021, users had allocated approximately 40 billion gigabytes of storage to Chia Network.[5] Rather than the typical initial coin offering used to launch many cryptocurrencies, Chia Network opted to reserve pre-farmed tokens and raise venture capital.[10] That year, the company announced that it was considering going public via a traditional initial public offering (IPO) or by merging with a special-purpose acquisition company.[11] When the company began trading XCH on May 3, 2021, it held 21 million tokens in reserve.[4] According to Business Insider, the growth of the company and its XCH token led to a rise in prices of hard disk drives and solid state drives.[12] On April 14, 2023, the company announced that it was nearing an IPO having submitted a draft registration statement to the U.S. Securities and Exchange Commission.[2]

Partnerships

In August 2022, the International Finance Corporation announced a partnership and fund with Chia Network, Aspiration, Inc., and Cultivo to tokenize and track carbon offsets.[13][14] Chia Network also provides technology infrastructure for the Climate Action Data Trust, a partnership between the International Emissions Trading Association, World Bank, and the Government of Singapore, which seeks to enhance the overall integrity of carbon markets.[15]

References

  1. ^ Gaszcz, Carol (June 17, 2019). "BitTorrent creator Bram Cohen becomes new CEO of Chia Network". Yahoo!. Retrieved June 12, 2023.
  2. ^ a b Miller, Hannah (April 14, 2023). "Crypto Startup Chia Network Files Confidentially for IPO". Bloomberg. Retrieved June 6, 2023.
  3. ^ Miller, Hannah (January 19, 2023). "Giving Up on IPO Goals". Bloomberg. Retrieved August 9, 2023.
  4. ^ a b Daniel, Will (May 1, 2021). "A new green cryptocurrency called Chia uses a less energy-intensive method of minting new coins. Here are 6 things to know about the digital asset before it starts trading on Monday". Markets Insider. Retrieved June 5, 2023.
  5. ^ a b c Sahlman, William A.; Gonzalez, George (2021). "Chia Network: Reimagining Programmable Money". Harvard Business School. Retrieved June 12, 2023.
  6. ^ Constine, Josh (March 28, 2018). "Energy-saving Bitcoin rival Chia raises from A16Z, plans mini-IPO". TechCrunch. Retrieved June 2, 2023.
  7. ^ Benveniste, Alexis (May 6, 2021). "This crypto claims to solve bitcoin's biggest problem". CNN Business. Retrieved June 2, 2023.
  8. ^ Constine, Josh (November 8, 2017). "BitTorrent inventor announces eco-friendly bitcoin competitor Chia". TechCrunch. Retrieved June 2, 2023.
  9. ^ Constine, Josh (March 28, 2018). "Energy-saving Bitcoin rival Chia raises from A16Z, plans mini-IPO". TechCrunch.
  10. ^ Sahlman, William A.; Gonzalez, George (October 29, 2021). "Chia Network: Reimagining Programmable Money". Harvard Business School Case 822-039.
  11. ^ Tan, Gillian (May 24, 2021). "Chia, the 'green' Bitcoin alternative, looks to IPO as early as this year". Fortune. Retrieved June 5, 2023.
  12. ^ Daniel, Will (May 25, 2021). "Green crypto startup Chia Network doubles its valuation to $500 million and is mulling an IPO, report says". Business Insider. Retrieved June 2, 2023.
  13. ^ Hernbroth, Megan (August 18, 2022). "IFC backs $10M carbon credit fund". Axios. Retrieved August 9, 2023.
  14. ^ Jessop, Simon; Nasralla, Shadia; Horton, Cole (August 17, 2022). "World Bank's IFC taps blockchain for carbon offsets". Reuters. Retrieved August 9, 2023.
  15. ^ Schreckinger, Ben (October 27, 2022). "Crypto, but for the climate". Politico. Retrieved August 9, 2023.