What is Chromia (CHR)?
CHR is the native token of Chromia, which is an open-source blockchain that allows users to develop decentralized applications (dApps). By offering enhanced data processing, scalability, and flexible pricing, it aims to improve current dApps and enable the development of enhanced future dApps. If you want to know the current CHR value, take a look at the Chromia price chart above.
Decentralized applications that are built on Chromia can be easily scaled since each dApp runs on its own sidechain. This is also the reason why developers can choose their own fee payment structures rather than using the one that is used on the main chain.
Apart from allowing users to develop dApps, Chromia offers a few other features. For instance, it provides users with a block explorer feature, which allows them to monitor transactions and activities that take place on other chains.
Besides that, it has a new token standard protocol made specifically for NFTs. The protocol is called Chromia Originals. It’s unique because, apart from allowing users to tokenize digital assets, it also allows them to tokenize real-world assets.
Additionally, it has a wallet called Chromia Vault. The wallet allows users to store and manage their assets, as well as decentralized applications.
The Founders of Chromia
The Chromia crypto project was founded by Henrik Hjelte, Alex Mizrahi, and Or Perelman. Henrik Hjelteis is the CEO, Alex Mizrahi is the CTO, and Or Perelman is the COO of Chromia.
Given that Henrik Hjelte has a degree in business administration and economics, Alex Mizrahi has a degree in mathematics, and Or Perelman has a degree in law, Chromia's founding team is quite diverse.
Besides founding Chromia, they also co-founded Colored Coins, which is a blockchain token protocol, and ArmoryX, which is the Colored Coins wallet.
How Does Chromia Work?
The architecture of Chromia’s blockchain is quite unique. It employs a relational blockchain model. It’s based on the concept of relational databases that were developed in the 80s. The capacity to arrange and manage your data is a relational database's main benefit. In the case of relational blockchain, the blockchain is that database.
Besides that, Chromia employs its own programming language called Rell. Due to its design, it performs extremely similarly to Kotlin and SQL. Rell enables developers to manage data with the effectiveness of a relational database, at the same time taking advantage of the security and immutability of blockchain technology.
Chromia’s voting and consensus are handled by a light software layer on top of a blockchain that is stored inside a database. Nodes are produced in this manner and distributed among numerous independent participants.
When someone requests to write data, one of the nodes receives it and shares it with the others. The data is written and logged in the blockchain when the nodes inspect the request and come to an agreement.
Overall, Chromia itself is a Layer-1 blockchain, thus, it’s often used as a base for building dApps. However, it also provides users with Layer-2 enhancements that are compatible with the Ethereum Virtual Machine (EVM). Therefore, it works well with Ethereum and provides users with a smoother dApp developing experience.
Besides that, due to its relational blockchain architecture, it can also be used as a decentralized storage layer.
The Purpose of CHR Tokens
CHR, also known as Chroma, is the native utility token of the Chromia network. If you’re interested in the current CHR price, check out the Chromia price chart above. The following are the main use cases of Chromia tokens:
- Staking. CHR holders can stake their tokens to secure the network and receive rewards. However, stakers must freeze their tokens for at least 2 weeks in order to get their staking rewards.
- Chromia Accounts. Chromia features numerous unique CHR token accounts. This includes accounts dedicated for ERC-20 token pegging, development pool, system node compensation pool, and so on.
- Governance. Users can participate in the decision-making processes of the Chromia ecosystem by staking CHR tokens.
- Hosting fees. Developers of dApps cover hosting fees with CHR tokens this way compensating nodes for producing blocks.
- Standard platform’s currency. Developers of dApps can use CHR tokens for various cases. This includes using CHR as a fee payment method in their dApps or as a reserve to peg their own tokens.
Tokenomics of CHR Tokens
The max supply of Chromia tokens is 1 billion. This means that no new tokens will be minted in the future. During its private sale, around 17.94% of the token supply was used. Another 4% was dedicated to the initial exchange offering (IEO).
The remaining portion of the supply was dedicated to the promotional fund, ecosystem fund, team, founders, advisors, system node compensation pool, and an auto conversion contract (CHR to ETH). Though note that these tokens were not released all at once, instead, they’re going to be released gradually over time.
If you're considering investing in Chromia coins, bear in mind that the CHR price is prone to fluctuation. Why? This essentially happens as a result of the Chromia price being affected by the overall fluctuation of the whole crypto market in the same way that other digital assets' prices are.