Chromia CHR: A Blockchain and Second Layer for the Next Generation of dApps

0 43
Avatar for two_sats
1 year ago

*obligatory not financial advice*

 

What is Chromia?

Chromia is a new blockchain for dApps that will launch its main net sometime soon. Existing smart contract platforms like Ethereum allow the creation of any kind of application but they have many limitations. There can be high fees, a bad user experience, difficulties for building dApps and many more problems. This makes it hard for decentralized applications to go mainstream, using and building them needs to be more convenient to let more people join the crypto world. Chromia wants to solve these problems by rethinking the blockchain architecture to make the creation of dApps and the interaction with them simpler.

Chromia is a so called "Relational Blockchain" that connects regular relational databases that are commonly used by the normal internet and the decentralization of blockchains. They basically just take regular databases and add a layer for voting and consensus and put transactions into a chain, a blockchain, inside of the database. This makes it possible to have the user-friendliness and logic of a proper database for the applications running on the blockchain. Another advantage is that is supports SQL which is one of the best known programming languages while most blokchains have their own languages that most developers are unfamiliar with.

Each dApp on Chromia has its own side-chain but they are all connected. This makes it possible to make a different fee structure for each application. For example you can have your users pay for each transactions with CHR coins, or the application itself could have enough CHR staked to pay for fees so that its feeless for users or you could have them pay fees with a different token. This also allows Chromia to be used as an enterprise private, independent public and as a hybrid blockchain.

Letting each app have its own side-chain also makes it easier to scale while still staying decentralized because some nodes only need to store the state of the dApp and handle the transactions of the application. So the hardware requirement for running a node is lower but the transactions can still be handled faster because the nodes only take care of the dApps they want to handle.

Chromia is its own layer 1 blockchain, but it can also be used as a layer 2 for both Ethereum and Binance Smart Chain, so this chains can profit from Chromias features. Even though the main net hasn't launched to the public yet, there are already a few applications that are building on Chromia or utilizing it as a second layer. There are blockchain games like My Neighbor Alice and Mines of Dalarnia, a DeFi application called Hedget that offers decentralized option trading and there are a few enterprises that utilize Chromia like Lingon that offers the creation of digitals certificates on the blockchain.

The CHR coin

CHR is the native cryptocurrency of Chromia. Decentralized applications have to pay hosting fees in CHR to the network to compensate nodes. They can have their users pay fees in CHR or another coin or token and then swap it for CHR. It will also be used for staking to run a node because the nodes have an incentive to make sure everything works fine to protect the value of their stake. Holders can also delegate their coins to a validator to earn part of the rewards, nodes that run dApps could maybe also earn their hosting fees by collecting the staking rewards of their delegators instead of charging their users for each transaction.

There is a max supply of 1 billion coins, but 22 million have been permanently burned. The remaining supply is circulating as tokens on Ethereum and Binance Smart Chain, when the main net launches there will be a token migration to the native blokchain. 22% of the total supply were sold to investors, 15% went to founders, advisors, team members and the like and 63% were set aside for building the ecosystem and for advertising. The vast majority of the supply is controlled by founders and developers, which is far from optimal but they are planning to use it for further improvements. By November 2024 the entire supply will be unvested and circulating, there will be constant sell offs by whales until then but after that it will be more decentralized and vesting will not be an issue anymore. So far more than half is circulating.

Once the main net launches and more users, dApps and enterprises utilize the chain there will be more demand for CHR. There is a max supply and inflation will not be a problem, there will only be a vesting schedule until late 2024. Chromia is very early in its development but it already has some applications utilizing it and it will make the creation of new dApps easier which could attract many developers and with them users. It has a lot of potential and the price has a lot of room to grow, but it is also rather risky due to its low market cap and the fact that a huge part of the supply is controlled by the devs.

Binance has the most trading pairs for CHR, but KuCoin and the DEXes Uniswap and Pancakeswap offer the token too. Any wallet for Ethereum or Binance Smart Chain can store CHR tokens but be careful which network your tokens belong to before sending them to an address.

-----

If you liked my post then please leave a tip!

 

Binance, 10% discount on fees

Trade at the MEXC Exchange with a 10% discount

Presearch, 25 PRE start bonus, earn cryptocurrency for searching the web

Learn more about the Ledger hardware wallet

 FaucetCrypto, Earn small amounts of Cryptocurrencies for free

1
$ 0.00
Avatar for two_sats
1 year ago

Comments