Blockchain Smart Contract Development: Chia’s Global Peer-to-Peer Vision

2 min read

In the realm of blockchain innovation, where the status quo often clashes with the potential for radical decentralization, a pioneering approach has emerged, challenging the entrenched norms of smart contract development.

Historically confined by the limitations of existing platforms like Ethereum, with its Solidity programming language, the development community has grappled with a landscape marked by centralization and hesitancy towards self-custody solutions.

Yet, this narrative is poised for a dramatic shift with the advent of Chia’s blockchain technology, which promises a departure from traditional finance’s constraints towards a truly decentralized peer-to-peer market.

Chia’s introduction of “Chia Offers” represents a paradigm shift, enabling trustless proposals for transactions that transcend conventional communication boundaries, thus reimagining liquidity and asset exchange.

By facilitating direct, flexible, and secure exchanges, Chia not only addresses liquidity concerns but also paves the way for a more inclusive and efficient marketplace. This innovative mechanism allows for a seamless and decentralized trading experience, leveraging the power of blockchain to connect buyers and sellers globally, around the clock, without reliance on centralized liquidity pools or intermediaries.

Furthermore, Chia’s strategy includes multi-offer support and expiring offers to optimize market dynamics and asset liquidity, illustrating a forward-thinking approach to digital asset trading. By democratizing access to trading and ensuring continuous market operation, Chia stands at the forefront of creating an “Internet of Markets,” where transactions are governed by mathematics rather than trust in intermediaries. This bold move towards a unified market accessible to all internet users challenges traditional trading limitations and heralds a new era of financial exchange.

Through its innovative framework, Chia is not just offering a new technology but is redefining the very foundation upon which future blockchain endeavours will be built. By breaking free from the constraints of traditional finance and centralized platforms, Chia is setting a new standard for what is possible in the realm of peer-to-peer blockchain transactions, making the vision of a truly global and accessible market a reality.

Blockchain smart contract development thus far has occurred in the straight jackets of the Ethereum Account Model and Solidity. These constraints, combined with the abject fear that currently accompanies self-custody on Bitcoin or Ethereum, means that we’ve designed and built things that look like TradFi, are overly centralized, or worse – both.

It doesn’t have to be this way.

True peer-to-peer markets will work very differently, but first, I must point out an important human foible. When we look around the world and “how things are done now,” we often overlook the massive inefficiencies or poor designs we take for granted because they mostly work. The idea that you can only trade stocks from 9:30 AM to 4 PM Eastern time and buyers and sellers have access to only the liquidity inside national borders or those sophisticated enough to reach across national borders – is ridiculous when you stop to think about it.

Chia Offers

There could be competing stablecoins on the Chia blockchain. Could that cause poor liquidity as each stablecoin must be paired to every asset and not really interoperate? Yes.

So, Chia built the capability for multiple Offers. Anytime someone offers an asset, they make an Offer file for that asset, represented as a token, paired to any other asset they’re willing to take. In the case of an art NFT, that would mean something like an Offer for that NFT in BYC, WUSDC, USDS, WPYUSD, WUSDT, etc. Then broadcast those as each one is a couple of kilobytes, and you can use something fully decentralized like Dexie Splash.

When a buyer decides to take the Offer using WPYUSD, all of the other Offers will immediately cancel themselves as they refer to the same coin that has now been spent.

The other convention Chia want to introduce is the use of expiring Offers. Suppose a user is actively making a market selling carbon credits from their carbon project. They will probably set them to expire every 5 minutes, and can then rebroadcast new Offers at updated prices as their bot watches the market.

Buyers can subscribe to the assets they care about and filter out the rest of the flow over something like Splash.

One Market

With these capabilities, there is suddenly one market everywhere the internet touches, and it trades 24/7. Further, there really aren’t liquidity pools because all assets can be offered in whatever liquidity happens to be around. Add some folks taking a narrow cut placing Offers between say WUSDC and WPYUSD – and 24/7 high-frequency trading and deep liquidity are now available for any asset on the Chia Blockchain.

Chia’s technology enables the Internet of Markets: one market, no trust, no middlemen, just math.

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