Chia is designed to improve on Proof of Work-based blockchains with a new Nakamoto consensus algorithm we call Proof of Space and Time. Instead of consuming massive amounts of electricity and wasteful single-purpose ASIC hardware to validate transactions, Proof of Space leverages the over-provisioned exabytes (EB) of disk space that already exist in the world today. Chia is extending average hard drive lifetimes by giving them a second life after the data center. In partnership with the storage industry, we are moving the entire storage market to a circular economy of drive recycling - cutting back global e-waste beyond just our footprint.
Rate Limited Wallets: Withdrawal rate limiting allows the creation of wallets that can only spend a certain amount of coins over a specified amount of time. You can put a year's worth of living expenses in a wallet but restrict it to only allow spending 1/52nd of the funds in the wallet each week. If the wallet were stolen, or compromised by a third party, you can use the primary wallet to pull back the balance of the funds that were not yet stolen once it was recognized that control had been lost. Chia shipped a reference rate limited wallet to testnet in August 2020. 17 -
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Slow Paper Wallets: Current cryptocurrency best practices are to keep a paper wallet backup of your active or hot wallet. This is prudent for many reasons including that hardware can fail and its easy to have your hardware lost or stolen. However, this leaves you vulnerable to someone stealing your paper wallet and having complete control over, and ability to steal, all of your funds. Slow paper wallets allow you to store a smart transaction thats capable of starting a time-delayed process to recover your funds in your hot wallet but it is not a duplicate of your private key. If someone were to steal your slow paper wallet and start that process, your active wallet can recognize the situation and instead redirect the funds transfer to a new wallet you control. Starting the backup recovery can optionally require a security deposit to further hinder attempts to steal funds via the slow paper wallet.
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DID Wallets: Chialisp enables digital identity wallets that have in-depth recovery options and allow individuals and organizations to add identity and permissioning on top of a permissionless blockchain. Users can pseudonymously delegate control of their identity to family or legal counsel in a way that can be recovered by both the delegates and in a way that allows the delegates own identity to be recovered and used as well. This enables certain types of trust/trustee relationships and is a path to digital inheritance. This also allows the provider of an asset on Chia Networks blockchain a method to have end users complete processes like KYC/AML and present that attestation from their digital identity wallet to be able to receive equity, a subscription to a hedge fund, or a government-backed stablecoin. The asset issuer or verification service can also easily revoke those credentials if they determine that someones status has changed.
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CATs: Chia Asset Tokens (CATs) allow individuals, financial institutions, corporations, and governments to issue on-chain assets that inherit the smart transaction capabilities of Chia Networks blockchain and rely upon the globally decentralized secure validation that Proof of Space and Time provides. ERC-20 tokens are currently the most recognized form of colored coins, but they are very limited. The Solidity smart contracts they depend on are plagued with security risks. Additionally, they do not feel like a native part of the Ethereum blockchain to end users and require each asset to be individually enabled by wallets and digital money exchanges. Recent security research has shown that they are vulnerable to being counterfeited on exchanges too. CATs coins inherit all of the capabilities of Chialisp which makes them far more suitable to high compliance asset issuance and allow them to be more native to chia wallets.
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