Table of contents

• Protocol Updates
• Plotting and Farming
• Plot Compression Support
• Farming Strategy
• Farming UI Improvements
• CHIP-0011: CLVM BLS Additions
• General User Experience Improvements
• For Developers and Creators (RPC and CLI only)
• General System and Application Support Updates

Protocol Updates

Earlier this year, we introduced plot compression and GPU plotting and farming to Chia. With this release, we’re initiating protocol updates to support these features and have outlined specific details below.

CHIP-0012: Plot Filter Reduction Hard Fork

The increased speed of GPU plotting is great! However, if someone can create a plot too fast (in less than 28 seconds) and do so economically, they can continuously create and discard plots without storing them on disk. This is known as plot grinding and resembles Proof of Work.

Plot grinding is currently not feasible since plot creation time is too slow, even when using a GPU. While it is likely to become technically possible within the next year or so, it will still cost immensely more money than storing plots on disks. This economically discourages farmers from plot grinding as they’d make significantly less money than using the network as intended.

To discourage future plot grinding attempts, we and the community created CHIP-0012 to reduce the plot filter over the next decade gradually (the final reduction is set to occur in 2033). This update will cut the plot filter in half every three years. The first reduction (from 512 to 256) will occur at block 5,496,000, likely in June 2024. The technical details and economics of plot grinding can be found in the blog post on GPU plotting.

This represents a non-forward-compatible change to the protocol, also known as a hard fork. At Chia, it is our policy to only create a hard fork when necessary. As such, the introduction of CHIP-0012 was both an anticipated and necessary step forward for the sustained health of our ecosystem. Further details on blockchain forks and their value in the evolution of blockchain networks can be found in our recent blockchain forks blog post.

Alongside the introduction of CHIP-0012, version 2.0.0 includes the following outlined additions that will be enabled simultaneously with the hard fork.

New Conditions for Coin ID Calculations

Previously, the CLVM lacked the ability to calculate a coin ID while validating its components. With this release, we’re enabling new conditions for a coin’s ID signature verification using just one or two of a coin’s components (i.e., parent ID, puzzle hash, amount). We created six conditions listed below for this purpose:

• AGG_SIG_PARENT
• AGG_SIG_PUZZLE
• AGG_SIG_AMOUNT
• AGG_SIG_PUZZLE_AMOUNT
• AGG_SIG_PARENT_AMOUNT
• AGG_SIG_PARENT_PUZZLE

Following the hard fork activation, users may verify a signature regardless of whether they are missing one or two of the coin’s components. If any of the provided arguments are invalid, the operator will fail. As we consider the implementation of state channels (or a blockchain second-layer solution), these conditions enhance convenience for channel participants with more accessible signature verification.

Pre-allocated Soft Fork Conditions

In version 2.0.0, we’re setting new soft fork conditions with pre-calculated costs. These pre-allocated conditions allow future conditions with non-zero CLVM costs to be added to the network as soft forks. Previously, this functionality was only possible via hard forks.

Support for Advanced CLVM Serialization

Version 2.0.0 features an advanced CLVM serialization method as an amendment to the current format. Full nodes will be serialized in a new format that differentiates repeated structures, ensuring they are only processed once, thereby saving space and computation power in transaction processing. As an amendment, old farmer’s blocks will still be accepted by new farmer’s, but new farmer’s blocks won’t be accepted by older farmers.

Additionally, the new format does not apply the cost of computing the puzzle hash to the block cost. By mitigating the cost calculation penalties for large puzzles, this format increases the amount of transactions that fit in a block.

Plotting and Farming

The 2.0.0 Chia client has major new features for plotting and farming, including a new version of Bladebit that supports plotting with NVIDIA GPUs, plot compression for more farming space, and many quality-of-life improvements for farming, such as a health dashboard, harvester latency graph, and an improved plotting UI.

Plotters

The new Bladebit version 3.0 can create compressed plots entirely in RAM, using a CUDA-capable GPU or a CPU. In-memory plotting with a GPU is the fastest and most energy-efficient way to plot, as it does not use up any SSD endurance. Plotting entirely in memory requires 256 GB of RAM when using a GPU or 416 GB when using a CPU.

Most farmers don’t have access to a server, workstation, or high-end desktop with 256 GB of RAM, so we have also enabled Bladebit cudaplot to support temporary SSD storage. Bladebit 3.1 (available in a future version of Chia) will support plotting on consumer desktop boards and workstation laptops with as little as 64 GB of RAM, with the assistance of an SSD. Plotting with any disk still requires high sustained write bandwidth and endurance, so please visit the SSD endurance page to learn about selecting a data center SSD or high-endurance consumer SSD (like this one!).

Plot Compression Support

Plot compression increases the number of plots you can store on disk, increasing farming rewards. We designed the Chia Proof of Space consensus with plotting tables to prevent Hellman attacks, or time-space tradeoffs. The most important takeaway from the blog post in January was this: with plot compression, plot size decrease is linear, while compute to decompress scales exponentially.

Plot compression is entirely optional and requires replotting.

Old plots will still work on the Chia 2.0 build. Most farmers will want to think about replotting to get the highest amount of farming rewards; low compression levels require minimal compute and power overhead for the extra effective farming space. GPU harvesting is highly efficient, with most large farms only increasing the overall power consumption by a few percent. The Chia 2.0 build supports compression levels C1 through C7. A table with the new plot sizes is kept up-to-date here. We have a lot of documentation to get farmers started with compressed plots. Head over to the Chia docs site and join the #farming-and-plotting Chia Discord channel or #bladebit-beta channel to get help!

Farming Strategy

Be ready for the plot filter reduction that will occur next June 2024. As detailed in CHIP-0012, this will double the number of plots needing to be decompressed at each signage point!

Farmers must ensure their hardware doesn’t get overloaded when the hard fork activates. However, most harvesters are likely to be unaffected, given their farms fall under maximum capacity. Plot compression is – and always will be – optional.

Chia has tools to help farmers size their plots and pick the best compression ratio for their system. To determine how to use compressed plots best and what compression levels are right for your setup, check out this blog post. Bladebit includes a “simulate” command showing farmers how much space can be farmed on a given compression level with their CPU or GPU hardware. Community members have also put together some excellent plotting and farming guides and hardware best practices.

Harvester Support for Compressed Plots

The Chia 2.0.0 client supports compressed plots in the GUI, or on the CLI with a new config file update, at levels C1-C7. Farming with CPU will take about 500MB of extra memory, and the default is set to use half the user CPU threads. If you are using the GUI, head on over to the new harvester tab in the settings page to enable compressed plot support.

Farming UI Improvements

The new farm tab is here! At the top of your dashboard, you will now see farm health. Sync status gives you a quick view of the blockchain, plots passing the filter will tell you if something is going on with the harvester, and missing signage points can signal network issues. Pooling health will now report the same information that the pool does for valid, stale, invalid, or missing partials for pool points.

The new Harvest tab now has total raw and effective capacity, showing how much extra space you get from plot compression. The new harvester latency log and updated harvester protocol can provide compressed plot information and the latency log. Plot compression adds latency for the CPU or GPU to decompress the plot. The more plots you have, the more compute and latency are required. The new graph will help farmers quickly identify issues from disk latency to different compression settings.

CHIP-0011: CLVM BLS Additions

CHIP-0011 adds new CLVM operators to increase on-chain BLS capabilities, as well as new functionalities, such as calculating a remainder, calculating a coin ID from its component parts, verifying secp signatures, and future use of zero-knowledge proofs. Below, we outline specific details for each new addition.

As part of our network optimizations, it is important to note that CHIP-0011 institutes a soft fork.

The CLVM operator additions are forward compatible, meaning any successful calls following the CHIP’s implementation would have succeeded beforehand. Further, the new CLVM operators are not backward compatible, given that some successful calls preceding the CHIP will no longer succeed afterward.

Addition of New BLS Operators

Occasionally, we narrow the scope of what is allowed on the blockchain through a soft fork. One such instance is our introduction of a comprehensive set of BLS operators to supplement point_add functionality. CHIP-0011 incorporates a new set of operators necessary to leverage the full capabilities of BLS signatures. The new operators enable more complex CLVM performance, including signature verification and the use of zero-knowledge (ZK) proofs.

It is worth noting that an additional operator protocol update will enable these new operators that were soft forked into the CLVM to be accessed without the soft fork operator. Developers can use all operators following the hard fork outlined in CHIP-0012, including the BLS codes mentioned above, without requiring the extra “softfork” call.

Operators for Calculating a Remainder

Prior versions of the CLVM did not allow for the direct calculation of a remainder from division or from division of an exponential operation. Version 2.0.0 provides two new operators, modpow and % to allow for such calculations moving forward.

Verifying secp Signatures

To better support signing devices, such as hardware security modules (HSMs), we’re enabling new signature types. Operators will be added to verify both secp256k1 and secp256r1 signatures. This level of support equips the Chia blockchain with the functionality necessary to support HSMs, hardware wallets, Apple Secure Enclave, and Android’s trusted execution environment.

These new operators activate Chialisp support for modern iOS and Android devices as highly secure private keys usable across multiple devices for vault management.

Transition to BLST Library

Previously, we’ve emphasized the use of BLS libraries. However, following our hard fork, we’re transitioning to the quicker BLST library. The newer library offers significant performance gains in the validation and submission of transactions.

General User Experience Improvements

Wallet Address Book (GUI)

Version 2.0.0 also includes an exciting new feature beyond our additions to plot compression and GPU plotting. We’ve added support for a local wallet address book in the GUI. Wallet owners can save all relevant XCH addresses, DIDs, or domain names against a set of contacts, providing efficient access when sending transactions. Users will also see the contact name for any transactions that have been sent as a more helpful way to recognize any previous transaction. You will also have your own contact card that will store your own addresses, DIDs or domain names.

The address book works as one common address book that is accessible across any local wallet keys on the same machine.

For Developers and Creators (RPC and CLI only)

Get Wallet Address RPC

The new get_wallet_addresses RPC allows developers to derive wallet addresses from any point in the wallet keyspace for any of the user’s keys. This will make it easier to get a specific wallet address along the derivation path for a specific key.

WalletConnect

In version 2.0.0, we’re rolling out a few improvements to our WalletConnect APIs. We’ve added support for the clawback command so DApps can initiate clawback commands to any connected wallet. The newly added get_wallet_addresses command has also been added as a command that can be called through WalletConnect.

General System and Application Support Updates

• 2.0.0 is the last Chia update to officially support the v1 full node database. All users are recommended to upgrade to v2 database in order to support future updates.
• Python 3.7 is no longer supported with this release. If you are running Ubuntu 18.04, you may need to manually update your Python version.
• This release is the last Chia update to support macOS 10.14 Mojave, macOS 10.15 Catalina. Future updates will only support macOS 11 Big Sur or higher.
• This release no longer supports Windows 8.1. This and future updates will only support  Windows 10 or higher.
• Offer files created on 1.6.2 or older Chia clients are no longer supported.

The post Version 2.0.0 Release appeared first on Chia Network.

Blockchain technology revolutionized trust and transparency in decentralized networks. Blockchains and their underlying consensus mechanisms are subject to “forks” – pivotal moments in the evolution of a network. 

Forks shape the direction and future development of an ecosystem. Given the regularity but vastly different uses in the industry we thought it’d make sense to demystify the notion of forks by exploring types, causes, and distinct impacts.

What is a Blockchain Fork?

A public blockchain’s open-source ledger uses an underlying consensus mechanism to govern its transactions. The blockchain grows with each transaction, linking the entirety of the network’s data according to the rules of its protocol. Since all blocks are linked by the protocol, a collective agreement to update these rules creates a forked consensus. 

Essentially, a fork is a software update that enacts new rules for the blockchain to follow. The consensus rules can either be loosened or tightened, but all nodes continue building on the same development path.

Types of Blockchain Forks

Blockchains have two basic methods of changing their consensus: soft fork and hard fork. Fundamentally, a soft fork is a narrowing of the rules, and a hard fork is a broadening of them.

Soft Forks

A soft fork introduces a backward-compatible change to the protocol, enabling nodes operating on the new software to continue interacting with nodes on a previous version which maintains network cohesion. Although the new rules may be more restrictive than the original, old nodes can still process new transactions – updated nodes will not recognize or adhere to the previous protocols. 

Let’s say rules A, B, and C are currently allowed. In a soft fork, if the community declares rule C as invalid, but maintains rules A and B, then the protocol has been tightened. Now, users of the upgraded version are only allowed to operate with rules A and B, which were also previously permitted. This demonstrates a backward-compatible change. 

Generally, soft forks are implemented to address minor improvements or enhance features, such as transaction efficiency or security measures. Soft forks typically only require users to upgrade their software, however, a lack of adoption may reduce network efficiency.

Hard Forks

A hard fork represents a more drastic non-backward-compatible change to the protocol, initiating a permanent divergence from the original blockchain. During a hard fork, nodes that have not upgraded to the new protocol become incompatible with the network and continue to follow old rules, while updated nodes form a new chain with its own standards and features. 

Returning to rules A, B, and C as eligible standards, in a hard fork if the community declares the addition of rule D and all rules remain valid – showcasing a broadening of the protocol. Users of the new software are eligible for rule D, which was not allowed in the former version. This represents a non-backward-compatible change. 

Hard forks should only be conducted when absolutely necessary and represent intensive change for the blockchain’s ecosystem. While allowing for transformative change, hard forks can also lead to ecosystem fragmentation caused by a separation of users across the two chains.

Why a Hard Fork?

Hard forking frequency differs considerably among the various blockchain projects and companies. While some networks enforce a hard fork with relative regularity, others opt to rarely undergo such drastic changes – so why do they occur at all? Hard forks facilitate the improvements necessary to keep a network flexible amid blockchain technology’s constant evolution. 

A network may choose a hard fork to add functionality, fix security bugs, modify consensus, or resolve community disagreements. Regardless of reason, these changes can introduce potential risks, ranging from replay attacks and security breaches to double spending and loss of consensus. Despite these possibilities, it is important to note that not all hard forks are risky, but rather an essential step forward in the growth and advancement of a blockchain ecosystem.

At Chia, we are in the practice of only initiating a hard fork when absolutely essential to the health of our ecosystem. We have always prioritized our network stability and community cohesion in decision making – a commitment maintained throughout all tech optimizations. 

Our introduction of CHIP-0012 and plot compression come as foreseen network advancements crucial to ensuring Chia remains one of the most secure, compliant, and sustainable blockchains out there. Since releasing our original plot format, we have anticipated further necessary updates. Now, as we prepare to initiate such changes, we chose the most accessible and least disruptive options.

Impact of Blockchain Forks

A blockchain fork of either kind is a significant decision necessary for the evolution of a blockchain’s decentralized governance. Blockchain is an inherently dynamic technology and both hard and soft forks highlight its adaptability in unique circumstances. 

Whether simply incremental improvements of a soft fork, or the substantial separation of a hard fork, blockchain forks demonstrate the technology’s resilience, and a core component of its ability to redefine trust in the digital age.

The post Forked Paths: Decoding Blockchain Forks appeared first on Chia Network.

Blockchain uses a distributed ledger technology system designed to drive transparency and trust, which are essential across a number of enterprise business applications. Blockchain solutions enable businesses to process payments and validate digital identities more securely and transparently than legacy technologies.

Business runs on data, and blockchain technology offers improved methods for data stewardship and management. Using blockchain, organizations can achieve stronger efficiency and security across a wide range of business applications. Below, we’ll dive into specific areas where we see enterprise use cases for blockchain, detailing the ways in which the technology can improve business operations.

How Does Blockchain Work?

A blockchain is a distributed system used to record transactions across a network of computers called “nodes.”

Data is stored in “blocks” which reach a data capacity and then “chain” to another “block” to create an unbroken and immutable system of record. Thus, the “blockchain” is a distributed and immutable data network accessible to all transactors in an ecosystem. 

However, many “enterprise-specific” or colloquially, private, blockchains are “permissioned.” The entity that owns the blockchain exerts a degree of control over who has access to the ledger and which types of transactions may be processed. This is a potentially risky prospect to those users without control, and inherently incompatible with the primary values of auditability and transparency that make blockchain technology an innovative solution for data stewardship.

Public blockchains differ dramatically from private blockchains. They are an entirely decentralized network of nodes managed by people unknown to each other. Thus, they are not under the control of any one entity, for example, the Chia blockchain is public. Public blockchains offer enhanced transparency and immutability of the ledger through decentralizing the control of the blockchain to the vast network of nodes, but transactions on the blockchain typically remain publicly viewable.       

There can be benefits and drawbacks to using one or the other, and an organization should understand its needs and goals for the technology’s use in their specific case.

Today’s Applications of Blockchain for Enterprise

Today, blockchain is most commonly associated with the technology’s applications within the financial sector. While blockchain can be advantageous to financial services firms, aiding in transactions like real-time payments, the technology’s applications and benefits are widespread across industries.

For example, blockchain-enabled supply chains can make businesses more efficient by ensuring that products reach customers at a quicker rate. This increases product traceability, and leads to smoother coordination between the business and its suppliers.

Blockchain-enabled supply chains can also aid businesses in managing supply chain risk, protecting each step of a product’s journey from production to the customer by marking and storing each transaction on an immutable ledger. U.S.-based defense contractor Lockheed Martin was the first company of its kind to implement a blockchain-enabled supply chain solution in its product development. As part of a partnership with SyncFab, Lockheed Martin now has direct access to a parts procurement and supply chain platform built on SyncFab’s blockchain.

Lockheed Martin is not the only business adopting this technology – according to Cointelegraph, over half of the companies on the Forbes Blockchain 50 list in 2021 used blockchain to solve logistical issues.

One such industry primed for enterprise blockchain is healthcare. Blockchain-enabled healthcare  can improve how providers maintain client records, process transactions, and manage risk – ultimately, lowering costs, enhancing patient and clinical experiences, and increasing efficiency in a secure way. 

By storing patient data on a permissioned, private blockchain, healthcare providers ensure that highly sensitive data, like electronic healthcare records, remain confidential. In this way, the secure and auditable nature of blockchain technology protects patient privacy, while creating data management efficiencies to advance healthcare practices.

Blockchain for Enterprise Examples

As awareness and adoption of enterprise blockchain use cases continue to grow, we at Chia see six primary areas of opportunity for blockchain to provide real-world business solutions. Within this scope lies applications across blockchain-enabled markets and blockchain security. 

Chia’s work with the Climate Action Data (“CAD”) Trust in partnership with the World Bank exhibits blockchain’s utility for markets. The CAD Trust is an open-source metadata system that uses blockchain technology to create a decentralized record of carbon market activity with the goals of avoiding double-counting, increasing trust in carbon credit data, and building confidence in carbon markets through improved transparency. Unlike most enterprise blockchain applications, the CAD Trust operates on an open-source system fully accessible to the public. These features empower partners to trade digital assets (in this case, carbon credits) in a trustless ecosystem, strengthening markets through an inherently cross-border and cross-market blockchain.

Blockchain technology is designed to promote trust and confidence within an ecosystem. When it comes to security, blockchain offers a robust set of solutions for businesses and individuals with the potential to improve everything from identity and access management, data privacy, and more. Today, large financial institutions, like JPMorgan, are turning to blockchain for security solutions. The bank recently announced plans to partner with six Indian banks to settle interbank dollar transactions on a blockchain. Beyond improving the security of these transactions, the blockchain solution will also allow for real-time transactions, which previously took hours or days to complete under the old technological regime.

Future Blockchain Development

Blockchain software development remains nascent, but bridging the gap between private and public blockchains would offer enterprises a more secure solution while retaining the transparency and auditability blockchain technology affords. For example, Chia’s Virtual Private Blockchain (VPB) harnesses the transparency of the public blockchain while layering in the ability to add permissions and other benefits of private blockchains in a single solution.

We’re still only at the beginning of how this technology will be developed and deployed, but we believe the Chia Virtual Private Blockchain offers a novel path forward to protect enterprises and the data they’re storing.

FAQs

Q: What is blockchain for enterprise?

A: Blockchain for enterprise is a distributed ledger system designed to drive transparency and trust across numerous business applications. Using a distributed and immutable data network, blockchains can streamline operations, including transaction recording, payment processing, digital identity validation, and more in a secure ecosystem.

Q: How does blockchain work?

A: Blockchains store data on a distributed network in “blocks,” which reach a data capacity and then “chain” to another “block.”

Q: How is blockchain for enterprise different?

A: Blockchains leveraged by enterprises can be public or private based on their needs, but today, are more often private systems for the permissioning tools.

Q: What business outcomes can blockchain support?

A: The technology’s applications and benefits are widespread across industries, including sectors such as supply chain, insurance, and healthcare. Blockchain-enabled supply chains aid businesses in managing supply chain risk, protecting each step of a product’s journey from production to the customer by marking and storing each transaction on an immutable blockchain. Furthermore, blockchain technology can be used to improve how healthcare providers maintain client records, process transactions, and manage risk – ultimately, lowering costs, enhancing patient and clinical experiences, and increasing efficiency in a secure way.

Q: How is blockchain being adopted in the real-world?

A: As awareness and adoption of blockchain use cases continue to grow, so does the opportunity for it to provide real-world business solutions. Within this scope lies applications across blockchain-enabled markets and blockchain security. Chia’s work with the Climate Action Data (“CAD”) Trust in partnership with the World Bank exhibits blockchain’s utility for markets, empowering partners to trade digital assets (in this case, carbon credits) in a trustless ecosystem and strengthening markets through an inherently cross-border and cross-market blockchain. When it comes to security, blockchain offers a robust set of solutions for businesses and individuals with the potential to improve everything from identity and access management, data privacy, and more. Today, large financial institutions, like JPMorgan, are turning to blockchain for security solutions.

The post What is Blockchain for “Enterprise”? appeared first on Chia Network.

Monday morning, a bug bounty hunter, Adnan Khan, submitted a bug report which outlined a successful attempt to compromise us. He was able to leverage a GitHub configuration setting to compromise the self-hosted runners.

Fortunately, this is standard operating procedure for our security team. There is no risk to users, but we will be proceeding as if this was a malicious attack to ensure we’re hardened against this in the future. We’ll be rebuilding the hosts and getting them back into operation, all certificates and secrets are being rotated, and we’ll be using the information provided to us from this report to perform a “Red Team” follow up action to retest our assumptions about how effectively we have prepared ourselves and our tools versus this attack profile.

What does this mean for you?

As an end user, nothing! We’ll have new builds from Chia’s continuous integration (CI), and any build from our CI should be viewed with a skeptical eye from a signed installer perspective until new signature certificates have been rotated in. The only pending signature cert rotation is Windows. The macOS and Linux installers have been re-secured at the time of this writing.

Other than that, we’re always looking for folks to continue testing our security measures and processes and if you find any exposed vulnerabilities, you can raise them through our bug bounty program.

If you’d like more detail, give our GitHub post-mortem a read here.

The post Bug Bounty: Self-Hosted Runners appeared first on Chia Network.

Blockchain technology garners significant attention for its potential to revolutionize many areas of the economy, from finance to healthcare. However, blockchains are often viewed as one extensive system, when in reality, each blockchain is composed of distinct components or layers. In this piece, we explore the importance of a network’s layers and the five most common types across blockchains.

The Importance of Blockchain Layers

The importance of blockchain layers lies in their ability to create a robust and modular framework for development. Layers enable blockchains to be scalable, adaptable, and flexible to evolving requirements. Beyond these advantages, layered blockchains also promote interoperability, allowing developers to easily integrate new applications and services into existing ecosystems.

The separated design of blockchain layers allows for incremental development, facilitating improvements to a singular layer without compromising the overall functionality of the blockchain. An understanding of blockchain layers qualifies users to better evaluate blockchains, identify specific use cases, and uncover opportunities for collaboration between blockchains in the case of synergistic layers.

Typical Layers that Comprise Blockchain Architecture

Protocol Layer

The protocol layer is the foundation of a layered blockchain, establishing the underlying rules that govern the network. These protocols are implemented by each of the following layers.

Network Layer

The network layer establishes the peer-to-peer network connecting blockchain nodes. The network layer ensures that transactions are evenly propagated and distributed among the network to certify that multiple nodes verify each transaction.

Consensus Layer

The consensus layer represents arguably the most critical component of a layered blockchain, enabling validation and verification of transactions. In particular, the consensus layer establishes clear communication protocols, verification rules, and trust through an immutable digital ledger.

Data Layer

The data layer is responsible for storing all transaction data in a secure and immutable manner. The data layer bundles verified transactions to blocks and then links the blocks to the existing chain, thus maintaining a record of all transactions performed on the blockchain.

Application Layer

The application layer encompasses all elements of the blockchain that the user interacts with. This layer provides a simple and user-friendly interface for interacting with the blockchain in a variety of cases, such as asset transfers, smart contract execution, and chain analysis. This layer also includes all smart contracts, decentralized applications, and other software running on the blockchain.

How do Blockchain Layers Interact?

Blockchains are similar to homes, with each layer making up a critical functional component. The foundation is the protocol layer, which determines the guardrails for all subsequent layers of the blockchain.

Next, the network layer uses the rules the protocol layer sets to establish a peer-to-peer network that will verify transactions. After, the consensus layer uses the peer-to-peer system installed by the network layer to incorporate a method for verifying the blockchain’s integrity.

The data layer follows, storing the verified transactions and allowing data to be externally accessed and audited. The last layer of the blockchain is the application layer where users can interact with the blockchain through decentralized applications (dApps) or user interfaces. A house relies on all its parts built upon one another to stand, just as a blockchain requires the strength and functionality of each layer. 

The security trilemma is a concept seen throughout blockchain initiatives relating to networks’ relative security, scalability, and decentralization. Notably, the security dilemma asserts that networks can only prioritize two criteria, thereby causing the remaining category to suffer. 

In general, the security of a network is inversely proportional to scalability and directly proportional to decentralization, indicating that as a network’s level of decentralization increases, so too does its security, and as scalability improves, security tends to suffer.

Scalability refers to a blockchain’s adaptability to a growing user base and transaction volume. Blockchains prioritizing scalability tend to be more centralized, thanks to consensus mechanisms designed to increase transaction throughput by consolidating verification duties to a small group of nodes, such as proof of stake. 

Decentralization refers to the degree to which blockchain ledger verification is distributed. In general, blockchains emphasizing decentralization, such as Bitcoin, offer more robust security, but struggle with scalability. This is because as the number of nodes increases, the verification time also increases, reducing the overall speed of the blockchain and limiting its ability to accommodate an ever-growing number of transactions.

Blockchains can adjust the relative security, scalability, and network decentralization at each layer. The cryptographic algorithms implemented at the protocol level directly impact a network, as a more robust algorithm will improve security. The choices made on individual layers directly impact a blockchain’s overall security, scalability, and decentralization and are key criteria to be considered when evaluating overall blockchain quality.

FAQ

Q: What are blockchain layers?

A: Although blockchains are often viewed as one singular system, they are actually composed of several distinct components, also known as layers. Layers enable blockchains to be scalable, adaptable, and flexible to evolving requirements, while also allowing for interoperability for developers to easily integrate new applications and services into existing ecosystems.

Q: What are the 5 layers of a blockchain?

A: The typical layers of a blockchain include the protocol layer, the network layer, the consensus layer, the data layer, and the application layer. The separated design of blockchain layers allows for incremental development, facilitating improvements to a singular layer without compromising the overall functionality of the blockchain.

Q: How does each layer operate?

A: As the foundation of a layered blockchain, the protocol layer establishes the underlying rules that govern the network to be implemented by each following layer. The network layer creates the peer-to-peer network connecting blockchain nodes to verify transactions. Next, the consensus layer establishes clear communication protocols, verification rules, and trust through an immutable digital ledger. The data layer is responsible for storing all transaction data in a secure and immutable manner. The application layer provides a simple and user-friendly interface for interacting with the blockchain in a variety of cases, such as asset transfers, smart contract execution, and chain analysis.

Q: How do blockchain layers interact?

A: Starting with the protocol layer as the foundation, this layer determines the guardrails for all subsequent layers of the blockchain. Next, the network layer uses these rules to establish a peer-to-peer network that will verify transactions. After, the consensus layer uses the peer-to-peer system installed by the network layer to incorporate a method for verifying the blockchain’s integrity. The data layer follows, storing the verified transactions and allowing data to be externally accessed and audited. Finally, the application layer is where users can interact with the blockchain through decentralized applications (dApps) or user interfaces.

The post Understanding Blockchain Layers appeared first on Chia Network.

Public and private networks enable individuals and organizations to harness the power of blockchain for their goals. In the following article, you will learn about the differences between public and private blockchains, use cases, and how organizations can best leverage each to support strategic goals.

Public Blockchain: Anyone can join, anyone can contribute

A public blockchain is a permissionless, non-restrictive decentralized digital ledger available to anyone for use. Data stored on the blockchain and a description of all transactions occurring are accessible to the public as part of a public blockchain.

Given the open nature of public blockchains, anyone can participate, commonly by performing transactions or by verifying transactions. As a public network, this type of blockchain maintains a greater degree of decentralization than private blockchains, making them more resistant to censorship and manipulation, while also removing any one central point of failure.

Computers on the network verify the integrity of transactions through consensus mechanisms. Common consensus mechanisms include proof of work, proof of stake, and proof of space and time. Public blockchains ensure greater confidence in their ledger by allowing public access to transaction records, enabling independent verification, and validating the overall integrity of the network.

Despite the security and auditability merits of public blockchains, some drawbacks remain – broadly distilled into scalability concerns, privacy challenges, and energy efficiency. Since public blockchains rely on consensus mechanisms to verify transactions, the processing time increases substantially as the number of transactions increases.Those seeking to utilize blockchain for storing sensitive data, such as financial information or medical records, may find the transparency of public blockchains to be a disadvantage. Lastly, using consensus mechanisms for verification significantly increases energy costs. As a result of the high energy demands, many have criticized public blockchains for their environmental impact.

Private Blockchain: Verified and Vetted

A private blockchain operates similarly to a public blockchain except, only select individuals can view and interact with a private blockchain. Each participant in the network must be authorized, and operates a node responsible for verifying and recording transactions on the digital ledger. Because access is limited to approved individuals, the transactions and data recorded by the blockchain are not publicly available, promising greater privacy compared to public blockchains.

Private blockchains also belong to a broader array of consensus mechanisms, allowing for many of the challenges associated with public blockchains, mainly scalability, and sustainability, to be circumvented. These consensus mechanisms are more tailorable than public blockchains, allowing for custom use cases rather than general applications.

Control over the number of individuals and the quality of nodes enables private blockchains to have faster processing speeds and improved scalability. As such, there are several key advantages of private blockchains for private entities, particularly, the enhanced privacy, improved control, and expedited processing times provide significant benefits for companies looking to leverage blockchain technology in their business. As with public blockchains, private networks are not immune to criticisms, mainly due to being far more centralized than public ecosystems. This centralization requires a significant amount of trust to be placed in the managing organization, while also limiting third-party verification of a ledger’s integrity.

Organizations Can Use Public and Private Blockchains for the Better

Public blockchains are best known for their role in cryptocurrencies. These open-source networks enable the execution of smart contracts, allowing a wide range of applications, including decentralized finance, decentralized exchanges, and crowdfunding.

The auditability and transparency of a public blockchain can be leveraged to create electronic voting systems. The immutability of blockchain records allows for expanded verification and security practices, improving current perceptions of the democratic process.

Public blockchains are best suited for use cases where auditability and trust are paramount and privacy is not a concern. Private blockchains are ideal when privacy is critical, such as storing confidential data or sensitive financial or medical information. 

Private blockchains fit well at large organizations with the resources to operate several nodes for verifying their transactions. Specific use cases for private blockchains include supply chain management, international transactions, and healthcare data management. At Chia, our Virtual Private Blockchain maximizes the best of a public and private blockchain, offering organizations the security and decentralization of public blockchains without sacrificing the transaction speed or privacy typical of private networks. The Chia Virtual Private Blockchain enables organizations to reap the benefits of blockchain without sacrificing the privacy and control necessary for true enterprise-wide adoption.

FAQ

Q: What are the key differences between private and public blockchains?

A: A public blockchain is a permissionless, non-restrictive decentralized digital ledger available to anyone for use. On a private blockchain, only select individuals can view and interact with the network. Each participant in the network must be authorized, and operates a node responsible for verifying and recording transactions on the digital ledger.

Q: What are the advantages to both private and public blockchains?

A: Public blockchains offer greater decentralization, making them more resistant to censorship and manipulation, while also removing any one central point of failure. Additionally, public blockchains ensure greater confidence in their ledger by allowing public access to transaction records, enabling independent verification, and validating the overall integrity of the network. Private blockchains require authorization of users, limiting access and promising greater privacy. Control over the number of individuals and the quality of nodes enables private blockchains to have faster processing speeds and improved scalability.

Q: What are the disadvantages of both private and public blockchains?

A: Despite the security and auditability merits of public blockchains, some drawbacks remain – broadly distilled into scalability concerns, privacy challenges, and energy efficiency. The centralization of private blockchains requires a significant amount of trust to be placed in the managing organization, while also limiting third-party verification of a ledger’s integrity.

Q: How are public blockchains used?

A: Public blockchains are best suited for use cases where auditability and trust are paramount and privacy is not a concern. They are best known for their role in cryptocurrencies, enabling the execution of smart contracts, allowing a wide range of applications, including decentralized finance, decentralized exchanges, and crowdfunding.

Q: How are private blockchains used?

A: Private blockchains are ideal when privacy is critical, such as storing confidential data or sensitive financial or medical information. Private blockchains fit well at large organizations with the resources to operate several nodes for verifying their transactions with specific use cases in supply chain management, international transactions, and healthcare data management.

The post Public vs. Private Blockchains: Key Differences appeared first on Chia Network.

General User Experience Improvements

Wallet Updates

We’re rolling out a GUI experience for our clawback custody primitive along with introducing support for the newly introduced Verifiable Credentials (VC) primitive. Details on specific features are outlined below:

Transaction Level Claw Back Support

For Senders:

Version 1.8.2 enables clawback support when sending XCH transactions, allowing users to revert sent XCH transactions without impacting the immutability of the blockchain. Transactions mistakenly sent as the wrong amount or to the incorrect address can now be recovered within the sender’s set time period. Users may configure their wallet with a specific clawback time frame defined by the user (e.g., 1 hour) to function as the wallet’s default for sending XCH. These conditions can be overridden by adjusting the clawback’s time lock or disabling the functionality.

For Receivers:

Receiving users will be able to see the incoming transactions updated in the pending balance, as well as a list of transactions with time locks and when they are available to be claimed. Any transaction that hasn’t been claimed by the recipient is eligible to be clawed back into the originating wallet. The spendable balance will be updated once transactions have been claimed and fully settled into the receiving wallet. For expedited claiming efficiency, auto-claiming can be enabled in settings so that any incoming clawback transactions will be automatically claimed with a preset transaction fee so long as the wallet application is running. 

The clawback user guide provides additional information on the clawback functionality introduced in version 1.8.2.

Verifiable Credentials

Version 1.8.2 introduces our Verifiable Credentials (VC) primitive to the Chia wallet. Verifiable Credentials represent cryptographically verified, tamper-proof statements about a subject and must include a trusted network of issuers, holders, and verifiers and is based on the W3C standard for Verifiable Credentials. 

• An issuer is an entity that creates Verifiable Credentials which assert statements about another entity.
• A holder is the entity that is the subject of a Verifiable Credential. They are the owner of the credential with total authority over its use and management. 
• The verifier is an entity that checks the authenticity of Verifiable Credentials being presented by the holder and holds trust for the VC issuer.

Additional details on the process of minting VCs, adding proofs, transferring VCs, and revoking proofs can be found in the Verifiable Credentials user guide. 

For Holders:

This release allows holders to directly view a list of VCs minted to their wallet accompanied by the data stored on each VC. Such data includes the VC’s issuer DID, date of issuance, expiration date, VC type, VC version number and metadata, as well as a permanent VC token identifier for auditing purposes. 

A VC’s holder is the owner of the credential with total authority over its use and management. Holders can revoke a VC should their wallet be compromised to prevent misuse of the credential across the blockchain. 

For Developers and Creators (RPC and CLI Only)

Verifiable Credentials Tokens Primitive

For Developers and Issuers:

As mentioned above, an issuer provides Verifiable Credentials that assert claims about an entity. Version 1.8.2 allows issuers to create VCs to the subject’s/holder’s wallet. Issuers are required to provide a Decentralized Identifier (DID), used to mint the VCs, along with providing proofs for the claims that the issuer has validated about the subject. While any entity can be a VC issuer, the acceptance of a VC is determined by the verifier based on the credibility of the VC issuer.

All identifying data stored on-chain and validated by an issuer must adhere to strict privacy permissions with an option to encrypt and decrypt the on-chain data. As a VC issuer, you have the following functionality to manage issued VCs:

• Add/Update proofs – Creating a valid VC requires providing proofs
• Revoke a VC – prevent the holder from using the VC due to expiration of the VC, or security breach
• Re-issue a VC – if the user has other wallets or has lost access to their wallet, holders can request VC issuers to re-issue a VC

To help contribute to the development of verifiable credentials, please take a look at the following Chia Improvement Proposals (CHIPs):

• CHIP-0016 – Verifiable Credential – Defines the on-chain VC and functionality
• CHIP-0017 – VC metadata structure – Provides a base template for the off-chain metadata for a VC
• CHIP-0018 – KYC VC data schema – Specific example using CHIP-0017 and standardizing the expected set of data and proofs that would be included for a know-your-customer VC

Addition of DID Commands to CLI

Previously, the majority of the Chia wallet’s DID commands were only available in RPC. To improve the user experience for CLI users, we’ve enabled the following CLI commands:  get_pubkey, update_metadata, get_details, find_lost, set_name, and message_spend. See our documentation here for more details on using the added CLI commands.

Ability to Send DApp Notifications in WalletConnect

The latest updates to our WalletConnect application enable individual DApps to push notifications to a user’s connected wallet. This doesn’t require any on-chain transaction and is an alternative for notifying connected wallets about anything relevant from the DApp. Now, DApps can share announcements, such as new service updates, or offer notifications directly with ecosystem users.

For Farmers

Identical Spend Aggregation

Identical spend aggregation is a mempool feature that allows multiple different spend bundles to spend the same coin.

This feature works for coins that do not have any AGG_SIG_* conditions in their puzzles. This brings Chia one step closer to supporting inter-transaction announcements (the ability to assert an announcement made by another mempool item) for all coins. Further information on the mempool feature can be found here. 

Other Fixes and Improvements

• Read our release notes for details on other fixes and improvements that have been made in this release here.

The post Version 1.8.2 Release appeared first on Chia Network.

On April 28, 2023, the first auditable and verifiable carbon offset was registered into the Climate Action Data Trust and published on the Chia Blockchain by EcoRegistry in Colombia from a carbon project that the Carbon Opportunities Fund (COF) had acquired. At the fund’s request, EcoRegistry tokenized 10,000 tons of carbon on the Chia blockchain in block 3,582,007 by minting a Chia Asset Token, representing the transaction, directly into the COF’s wallet. The COF made arrangements with Melonn to purchase 500 tokenized carbon offset tons and accepted payment off-chain. COF sent 500 tons of tokenized carbon to Melonn’s Chia wallet in block 3,587,105. Melonn then successfully retired 500 tons of carbon in block 3,587,052. Retirement can be seen on-chain as the spend of the carbon Chia Asset Token that creates no child coins. EcoRegistry subsequently marked 500 units as retired (found at the bottom left of the Carbon Credits tab) in its registry and in the Climate Action Data Trust. This was done using a project-specific CAT whose asset identity is bff40a4f913f8b25e8d708b95e83ba0b43321ef483b74251ce5b8a29d3244d17. At that time the COF had 9,500 tons of Programa de Compensación de Emisiones Cipreses de Colombia S.A. remaining to sell. After selling 600 tons to Sumitomo Corporation in two transactions in block 3813819 and 3813836 on June 16th, the available carbon on chain as of this post can be found here.

Now Melonn can prove to their auditors, their customers, or anyone that they purchased a valid and unique carbon offset which can go from the buyer showing the block for both acquisition and retirement and proving they control the keys that were used to retire the specific tonnage of carbon. That then links back to the status being updated directly in the CAD Trust. Those tons, for that project and that time period can not be double created or double retired thanks to the power of the CAD Trust and the market enabling transparent capabilities of the Chia Blockchain.

And we’re just getting started. The COF will continue to acquire and sell high-quality carbon offsets delivered on the Chia blockchain. 

In the next batches we hope to use Offer files to sell tokenized Carbon in a trustless manner to the ultimate buyer. This avoids having to use SWIFT for buyers located in the US or Europe to pay projects and project funders who are often in the global south. Instead of “maybe today” and “maybe all the funds will be there or will it be $20 short?” buyer and seller know immediately that the transaction is in flight and will be initially settled in under a minute and fully settled in about two and half minutes without needing any third party or requiring that the buyer or seller trust the other party. 

A little further down the line, we hope to enable direct on-chain auctions for high-quality carbon offsets sourced and sold by the COF. As these are higher quality than average, we expect them to demand higher prices. There really is no better way to find that price than an on-chain public auction that is trustless and decentralized. Once that clearing price is found, we’re excited to see secondary markets using Decentralized Exchanges (DEXs) and Chia Offers to immediately spring up to buy, sell, and retire these offsets.

In addition to ensuring a high quality truly additional carbon offsets and providing transparency, there are two ultimate goals here to bring efficiency to the carbon markets:

1. The first is to create baskets of carbon projects that fit into the major carbon varieties and are tested for higher standards to allow projects to trade in project-specific tokenizations for a widely listed and deeply liquid set of carbon tokens in categories: natural sequestration, natural offset, technical sequestration, and technical offset. Buyers will be able to review which projects they’re likely to retire by sampling a few projects in, say, the natural sequestration carbon pool. Assuming those meet the higher standards as expected, the buyer can acquire as many tons as the market can bear and then retire them with peace of mind that they are getting unique and properly vetted carbon offsets that will now be fully and transparently auditable by anyone to confirm that these offsets are unique and meet the underlying standards. Shortly after retirement, each of the actual underlying projects and tonnages will be updated in the CAD Trust so a buyer’s constituents can verify every ton and every project in the CAD Trust that was retired in the buyer’s retirement block.
2. The second is to enable projects to “go direct” to these markets, thus being able to get a greater portion of the value created. This is possible, both because of the power of the Chia blockchain to make obtaining, custodying, selling and retiring credits easy, but also because finding a global price of these high quality carbon offsets that trade 24×7 will unlock a very large amount of private capital and lending that has been on the sidelines because the price and the markets have traditionally been opaque. This way more of the value of the offset gets directly into the hands of the people on the ground making these projects happen.

The post The First Publicly Verifiable Carbon Offset Transactions and Retirement appeared first on Chia Network.

Generative AI, a subfield of artificial intelligence, is taking the world by storm. While many people have become familiar with large language models, like Open AI’s ChatGPT, a form of generative AI that creates new text from scratch, generative AI is also capable of producing other forms of content like images, videos, and music. With its multitude of computer-generated applications, generative AI stands to truly transform the way that businesses function and interact with customers.

Alongside its tremendous potential to change businesses for the better come real fears about how generative AI might threaten jobs by automating many kinds of work across industries. Even white-collar professionals may see their business functions become obsolete due to AI-driven automation. Additionally, 79% of IT professionals surveyed have concerns that introducing generative AI to their business may pose security risks. Pairing blockchain technology with AI models provides a resolution to many of these concerns. 

The combined benefits of AI and blockchain are numerous. From data validation to enhanced data security, together blockchain and AI have the power to produce novel applications previously never considered.

Below we will highlight the converging values of AI and blockchain when it comes to validation, security, and even less explored fields like gaming. In tandem, these two transformative technologies become greater than the sum of their parts.

Validation in the Age of Generative AI

For generative AI outputs to be useful, data inputs must be trustworthy and traceable. Blockchain validation presents the ideal  solution, elevating trust in the content’s authenticity and ensuring data integrity.

AI-generated content quality relies on the caliber of data the artificial intelligence can access. Storing this data on the blockchain affirms the accuracy of AI-generated content outputs. The inherent immutability of the blockchain provides transparency in AI decision-making. For example, the digital ledger can create a bibliography of sources used in  text generated by a large language model, preventing AI plagiarism.

As AI-generated content continues to gain prominence, blockchain technologies will also be useful in differentiating between fake AI-generated data and an original dataset. Blockchain’s ability to assist users in authenticating images, videos and other forms of content, safeguards the digital future of society.

Security in the Age of Generative AI

The decentralized nature of blockchains helps to build AI models on a foundation of truly secure and tamper-resistant data. Since data is stored across a network of many nodes, no single attack point can compromise an entire blockchain-based system.

These models are specifically built to be resilient to manipulation, including threats from  potentially adversarial AI agents. As AI capabilities expand so does the possibility of such attacks, increasing the need for higher degrees of data security. Like any emerging technology, AI can be used for good or for ill. The malicious use of generative AI has the potential to drive distrust and chaos in the internet ecosystem.   Abusive uses of AI by hackers include a wide range of possible scenarios, including shrouded phishing and deep fake scams as well as the ability of AI to “poison” a system’s dataset. Although there are no perfect solutions, the use of blockchain can protect databases from various attack vectors by enabling data auditability, provenance, and transparency.

Future Uses of Generative AI and Blockchain

Transformative blockchain projects will continue to proliferate within new and unexpected fields in the future. While AI and blockchain’s value appears obvious in certain industries such as the financial services sector, these technologies offer solutions across many novel applications.

One such example is the impact that generative AI can have on blockchain gaming. Here, the power of generative AI can be harnessed to create personalized digital assets for players, which in combination with NFTs, can be traded in a digital in-game economy.

Coupling the interoperability capabilities of technology like Chia’s CODE framework with the power of generative AI brings increased game customization to a whole new audience of gamers by streamlining the process for creating and trading new, personalized digital assets.

This infrastructure enables more engaging and functional games that also empower players to become developers themselves.  Together, these technologies unlock a gaming system’s  full range of creativity  and support robust in-game economies by assisting in the production of tradable assets.

The possibilities don’t end there. When it comes to the dual powers of blockchain and AI, the sky’s the limit.

FAQ

Q: What is generative AI?

A: Generative AI is a subfield of artificial intelligence with the ability to create content, such as text, images, videos, and music in response to prompts.

Q: How can generative AI and blockchain work together?

A: Ranging from data validation to enhanced data security and beyond, the combined benefits of AI and blockchain are widespread. Blockchain’s decentralization, immutability, and auditability improves trust in generative AI’s content authenticity, data integrity, and overall system security.

Q: How can AI and blockchain improve data security?

A: Blockchain’s decentralization ensures AI models are built on a foundation of truly secure and tamper-resistant data resilient to manipulation. The use of blockchain can protect AI databases from various attack vectors by enabling data auditability, provenance, and transparency.

The post Generative AI and the Future of Blockchain appeared first on Chia Network.

A blockchain is a decentralized digital ledger that records transactions across a network of computers, also known as nodes. In other words, blockchain is a peer-to-peer digital network that collaborates to maintain a shared record of interactions. While today’s blockchains are most commonly associated with financial transactions, the technology’s potential use cases go far beyond finance.

How Does Blockchain Technology Work?

The fundamental operations of blockchains are inherent to its name. The basic way blockchains function is by packaging transactions into what is known as blocks. Following this, the new block is validated by network nodes through a consensus mechanism — adding to the ledger’s chain, thus the titling of “blockchain”. Some common consensus mechanisms include Proof of Work, Proof of Stake, and Proof of Space and Time.

Proof of Work

Proof of Work (PoW) is the consensus mechanism predominantly associated with the Bitcoin network and requires nodes to dedicate processing power to decrypt a transaction. The node which successfully solves the cryptographic puzzle associated with a given transaction is rewarded, and all other nodes incorporate the transaction on the overall ledger. 

PoW, while secure, carries several drawbacks, specifically the large energy requirements to validate transactions and the high costs associated with obtaining a computer powerful enough to validate transactions successfully and receive rewards.

Proof of Stake

Proof of Stake (PoS) is an alternative consensus mechanism commonly associated with the Ethereum network. Rather than requiring miners to solve complex cryptographic puzzles to verify transactions, PoS creates and validates transactions based on the amount of cryptocurrency they hold and are willing to “stake” as collateral. 

Validators, who are individuals participating in the network, take turns creating and validating transactions based on their staked holdings, with rewards being divided up between them. PoS is significantly less energy intensive than PoW but is also far more centralized, resulting in criticisms that such a consensus mechanism runs contrary to the decentralized nature of blockchain technology and limits the resulting security.

Proof of Space and Time

Proof of Space and Time (PoST) is an emerging consensus mechanism pioneered by the Chia Network. PoST leverages unused hard drive storage capacity alongside time to reach consensus and validate transactions rather than the validators associated with PoS and the cryptographic puzzles related to PoW. 

PoST uses storage rather than processing power to validate transactions, lowering energy costs and expanding the number of individuals who can validate transactions on the network. PoST maintains the decentralized nature of PoW while significantly reducing the energy used, combining the best of both worlds – the security and decentralization of PoW with the lower energy costs tied to PoS.

Blockchain Consensus Model Comparison

Blockchain Security through Transparency

So, why is blockchain important? Blockchain technology provides several distinct advantages over traditional means of transaction verification in today’s digital ecosystem. The decentralized nature of a blockchain means that no single entity has control over the entire system, making it secure and resistant to increasingly common tampering and cyber-attacks.

With the decentralized nature of blockchain also comes improved transparency by allowing individuals to view all transactions on a given blockchain. This transparency is especially critical in industries where trust is paramount, such as financial services, supply chain management, and healthcare. Lastly, blockchain allows for automated validation and verification of transactions, removing the need for intermediaries and making transactions faster and cheaper.

Applications of Blockchain

Blockchain technology is primed to benefit a wide range of industries. While its application is not limited to any specific sector, several industries stand to gain significant advantages from blockchain technology’s broadening adoption, specifically financial services, healthcare, and real estate. 

The financial services industry, particularly in digital transactions, faces numerous challenges that blockchain technology can address. The realm of payments and remittances represents a key area for blockchain’s substantial impact. By leveraging blockchain technology, financial institutions enable faster, more secure, and cost-effective cross-border transactions. Blockchain’s decentralization eliminates the need for intermediaries and reduces transactional complexities, resulting in faster settlement times and lower fees. 

The healthcare industry, particularly in the United States, encounters obstacles of interoperability, regulatory compliance, and efficiency addressable with blockchain technology. 

 Blockchain technology has the potential to transform the management and sharing of medical records, by providing a secure, auditable, and efficient infrastructure. A blockchain infrastructure could manage electronic medical records, allowing patients to seamlessly transfer records to different providers and health systems without relying on the analog methods currently employed by many large health systems. Beyond the efficiency benefits, blockchain is already being investigated by the FDA for compliance purposes with the Drug Supply Chain Security Act, which requires that drugs be electronically traced from import to prescription in an interoperable manner. 

The transactions and record-keeping challenges prominent in the real estate industry have the potential to be solved with blockchain technology. Leveraging blockchain’s decentralization eliminates the need for intermediaries, streamlining processes and reducing complexities. Furthermore, blockchain enhances security, trust, and regulatory compliance by providing a tamper-resistant and immutable record of property transactions. 

Blockchain technology holds immense aptitude for various industries, transcending limitations to provide benefits across sectors. While its applications are not exclusive to any particular field, organizations can gain strategic advantages by embracing blockchain technology, particularly in financial services, supply chain healthcare, and real estate industries.

Blockchain Use-Cases

The benefits of blockchain are clear with many organizations across sectors already implementing blockchain infrastructure across various operations. As it stands now, blockchain is improving sustainability, ensuring supply chain providence, and securely managing public sector data. In the following section, we will explore three specific use cases pioneered by the World Bank, Walmart, and the Estonian government accompanied by the advantages provided by each system.

Chia Network partnered with the World Bank to develop a blockchain-based solution to garner increased support from institutional investors for climate-friendly projects in emerging markets. Currently, blockchain technology is deployed to enable carbon market data integrity, transparency, and efficiency across organizations and countries.

By utilizing blockchain technology in this way, the process of purchasing carbon offset credits is drastically simplified, bringing us one step closer to a carbon-neutral and sustainable world, while also investing in countries most threatened by climate change.

By leveraging Blockchain technology and Hyperledger Fabric, Walmart is revolutionizing the food supply chain ecosystem with enhanced transparency and traceability. By virtue of blockchain integration, employees can easily track product origins and current storage locations with a simple scan.

This technology drastically reduces the time it takes to trace food origins, streamlining operations and reducing paper and food waste. Furthermore, automation and enhanced transparency accelerate the supply chain, benefiting Walmart and its customers by providing quicker access to goods and services.

The KSI blockchain, implemented in Estonia, is a robust system that ensures data integrity and security by storing all citizen data on a distributed, public blockchain. KSI allows citizens to securely access and control their public sectors data, such as health records and government documents, empowering individuals to interact with public services while safeguarding their privacy.

For the government, the KSI blockchain enhances efficiency, transparency, and trust in data management, facilitating streamlined processes, reducing bureaucracy, and minimizing the risk of fraud and corruption. Estonia’s KSI blockchain benefits citizens and the government by fostering secure data management, empowering citizens, and improving public service delivery.

Organizations are increasingly recognizing the evident advantages of blockchain technology and actively adopting it within their operations. The current blockchain implementation by the World Bank, Walmart, and Estonia highlights the technology’s broad array of utility and benefits, specifically for sustainability, supply chain integrity, and secure data management. 

In subsequent pieces, we will explore in greater detail the technical mechanisms allowing a blockchain to function, general applications for blockchain technology, and active use cases leveraging blockchain technology.

The post The Basics of Blockchain appeared first on Chia Network.