Chia Crypto: Peer to Peer Trading
What's new with Chia crypto? Well, one of the “greenest” blockchains, Chia Network, recently confirmed it had launched a native, peer-to-peer (P2P) exchange service for its wallet users.
The cryptocurrency, which can brag about being the most sustainable and energy-efficient, said it partnered with Stably to launch a new dollar-pegged stablecoin, dubbed USDS, to support its product 'Offers' within the Chia blockchain.
Offers is the one that enables peer-to-peer asset exchange within the Chia crypto ecosystem, meaning it is possible that tokens that run on the Chia blockchain can be swapped without running through the exchange.
However, there is a need for two parties – the Maker who makes the offer and the Taker who receives it. Both parties are not required to fully trust each other since the offer is valid only in its original form. Any try to change it - will annul it.
‘Offers’ is immutable and secure
Chia also added that as well as being immutable, its new service allows trading in a completely secure manner. That means that both parties control their private keys and their assets.
Furthermore, Offers is simultaneous, meaning the Maker's and Taker's transactions must happen within the same block. This way, one type of Maximum Extractable Value (MEV) gets discarded, so one cannot re-order transactions or increase fees.
In Chia, all transactions conducted within a single block happen simultaneously.
Offers is also non-custodial since it eliminates the need for Over-the-Counter (OTC) desks and other intermediaries who ask their users to submit assets before finishing the transaction. In this case, neither Taker nor Maker has to send their funds to a mediator.
Also, Offers is commission-free since there is no need for escrow services or third parties. There are only Chia blockchain transaction fees included.
Additionally, it is important to stress that a Maker can make an offer for multiple assets on both ends.
Using Proof of Space and Time (PoST)
Chia crypto is also unique since it uses a new method of trading. Rather than leaning on Proof of Stake (PoS) or Proof of Work (PoW), it uses an even more decentralised protocol called Proof of Space and Time (PoST). This means one must prove he spent a certain amount of time keeping the reserved space unchanged.
The fintech corporation Stably will also provide wrapped Bitcoin and Ether for the Chia blockchain.
Chia head Gene Hoffman confirmed the main focus was on meeting “critical security and compliance needs to make peer-to-peer transactions safer and easier”.
He explained that the launch of Offers was a first step in meeting those needs and that partnering with Stably to provide US$-pegged stablecoins and wrapped cryptocurrencies was "integral to that process".
Hoffman added that the new partnership would help Chia crypto “hook up” with its “core community of early adopters – entrepreneurs and developers”.
“The stablecoins are a great way for a business to put dollar value into a Chia wallet to buy carbon credits," Hoffman concluded.
Last year, this San Francisco-based startup, created by BitTorrent founder Bram Cohen managed to raise $61 million in a Series D funding of around $500 million. After that, a series of events happened. The most important was Chia partnering with the World Bank in the initiative, which will enable the Climate Warehouse “to facilitate the transparent sharing and reporting of climate project information and its issuances”.
Author: Teuta Franjkovic
A sincere writer with a strong will to share knowledge on all things blockchain, crypto, metaverse and DeFi. Starting out as a writer with Cosmopolitan, Teuta has risen through the ranks of business journalism, editing newspapers and websites within the fintech industry for over 15 years. She holds a double MA in Public Politics and Entrepreneurship.