Introduction
This course is designed to give you an end-to-end introduction to Chia. We'll start off with a foundational understanding of the Chia blockchain. This includes what blockchains are for and what makes Chia different from other options. Once you understand the basics, we'll learn about plotting and farming. Finally, we'll cover many of the DeFi possibilities including fungible tokens (CATs), non-fungible tokens (NFTs), and writing custom coins in Chialisp.
Chialisp is Chia's on-chain programming language for writing custom coins. If you want to skip ahead to development, see the Intro to Chialisp section of this course.
Intro to Chia
The goal of cryptocurrency is to transfer monetary value on a peer-to-peer decentralized network. This means that there is no centralized intermediary to facilitate the transaction. Instead, blockchain relies on a network of nodes to confirm transactions according to some rules. Additionally, cryptocurrency makes the exchange of value extremely fast and easy, even for cross-border payments.
However, cryptocurrencies can be used for more than just facilitating digital payments. We are seeing many projects pop up that are designed as decentralized applications, or dApps. The value of a cryptocurrency is not only in its ability to be used for buying and selling goods, but also that it is designed to host applications without a centralized authority.
Each person who runs a Chia blockchain node runs a full copy of the software and is required to adhere to the consensus algorithm. This allows for peer-to-peer transactions confirmed against an entire network of nodes as opposed to a single entity.
Consensus
As new transactions are added to the network, full nodes must confirm these transactions. For a decentralized network to work, every node must be in agreement with every other node. This means they must follow the same rules.
The rules are known as the consensus and are rules defined in the software every node must adhere to.
Chia follows a consensus algorithm known as Proof of Space and Time (PoST). The way it works is by utilizing hard drive space and elapsed time as your contribution to the network. This is required to prevent what's known as a Sybil attack.
Chia is intentionally different than networks that use Proof of Stake (PoS). Many argue that staking has a centralizing effect on proof of stake networks as there are much fewer decision-making nodes, and they continue to gain power. Chia, on the other hand, has over 100K full nodes all following the PoST consensus mechanism, a protocol that is similar to that of Bitcoin (but with less electricity usage required).