The pooling protocol has been officially out and people are wondering what’s next in the line for Chia Network. For Chia after pools comes DeFi which ]makes things further engaging and profitable for the miners. So now Chia Network’s whole focus is shifted to DeFi and making Chia platform accessible for the developers to start creating other tokens.
However the focus was quickly shifted over to pools as people found it very difficult to solo farm. Though the Chia pooling protocol was really the foundation for DeFi on the Chia network. It was really an example of a real world application built on top of Chia. It used the Chialisp programming language that anyone could use to create other applications or tokens. Let’s say, someone wanted to create a new cryptocurrency but didn’t want to create an entire blockchain. He could create a token cryptocurrency by using Chialisp script on an existing blockchain that’s already created and available on the market.
People do this with cryptocurrencies like Ether and the Ethereum blockchain all of the time. There are numerous token cryptocurrencies built on top of Ethereum that use its blockchain and transaction fees are paid in Ether but they are their own cryptocurrency. These are often known as tokens.
The same thing is most likely going to happen with Chia which means we are most likely going to be seeing automated market makers or decentralized exchanges that use the Chia cryptocurrency network. In other words, imagine a uniswap where you can trade different tokens but it’s all on the Chia network. So you can go into uniswap and select some cryptocurrency to trade it for another cryptocurrency. But all of these are using Ethereum and the transaction fees are going to use Ether. Another example of something we may consider is a Chia wallet that doesn’t require a full synchronized node.
So if you connect your wallet here and choose one of these many options for the Ethereum network. You’ll see something very similar with the Chia network.
In that situation you might not have to download the entire Chia blockchain and keep that full node running on your laptop in order to make transactions which would make Chia a whole lot more usable.
For example the Nucle wallet announced that they are working to create a lightweight Chia wallet and they give a pretty good comparison on reddit.
“Nucle is the first Chia blockchain based decentralized SPV wallet for XCH and Chia coloured coins. Nucle is a decentralized wallet platform, similar to Metamask, which will help launch the decentralized finance (DeFi) platform of Chia in the future. Nucle will be available to the public in August 2021 on webapp, iOS and Android.” Reddit
Nucle is certainly not going to be the only Chia wallet. It’s probably going to be something where Chia gets support in numerous wallets.
Where does this latest Chia development come from and how does anyone can just develop something using the Chia network?
Everyone interested in Chia needs to understand a little bit about Chialisp. If you go to Chialisp.com you will see all the different tutorials on how to get started with Chialisp and talks about the important Chia related things like Colored Coins, singletons and what DeFi is as well as some basics on getting started.
However, as a developer you might find working with Chialist not very intuitiveas it can be a little complicated in the beginning. This is how to get started with and if you are looking for more resources the good news is that the Chia team is working on some of those resources as well and trying to build a good community that supports development of Chialisp for those of you who are very ambitious and want to get started building some of the first Chia DeFi token. On the Chia network you can get started with the Sirius labs hackathon.
So use Chialisp to build something on the Chia network and have the opportunity to earn prizes. So anyone who is interested in Chia DeFi token or applications he will be able to build them. So start building some of the coolest applications of Chia. So when Chia is more useful it would make sense to buy Chia, now farmers are mining Chia and selling it because they don’t really have a use for it.
For more information about Chia Hackathon go to this page here src.vc/hackathon where you can get all the details in the different stages. The pre-submission is also open for the programmers, developers and teams to upload their demos of Chia related projects as well as other Chia resources which you can find on this platform as well. So lots of different things to get started with the Chialisp language and the Chia network. Obviously not everything that is built to support Chia is going to use Chialisp so you can submit non-Chialisp based projects but the goal here is to really drive Chialisp adoption as the core.
You can read more about the judging criteria here on Chia Network blog post DeFi in Chia, “In addition to a new consensus algorithm with Chia we’ve also built a new on-chain programming environment called Chialisp which is just as powerful as solidity while also being far more auditable and scalable.” As we already know that solidity is the programming language for Ethereum.
This whole Chia blogpost is very informative and you can read through this article if you want to understand Bram’s vision for DeFi on the Chia network. It also talks about singletons and uses of the NFT/poolable plots which for those of you who have been using the pooling protocol have probably heard those thrown around but in cryptocurrency. An NFT is something that is unique and there’s only a single instance of it and this is exactly how pooling works where you create plots that are plotted to an NFT and you can read the technical details of how singletons are implemented which brings you back to the Chialisp documentation.