What is Chromia? An Overview.
- Use CHR token to pay transaction fees and as block rewards.
- Chromia is a blockchain platform that supports the deployment of decentralized applications (DApps). The aim of the project is to solve the scalability problem.
- Much like other platforms Chromia uses a network of nodes to form a blockchain, the unique side of the project is that each node uses its own relational database (more on that below!).
- The project conducted private and public token sales during August 2018 and May 2019, raising 11.70MM USD.
What is Chromia and CHR token?
Chromia, formerly known as Chromapolis, is a blockchain and also a relational database. Chromia and CHR token is a project by ChromaWay, which is a Swedish technology company that has been active in the cryptocurrency industry since 2014. In fact, their core team has been involved in crypto since 2012. Back then they created the world’s first protocol for issuing tokens called bitcoin 2.0. In conclusion, it is safe to say they know their way around developing blockchains.
The project aims to onboard existing businesses to adopting blockchain technology in a way that does not break any of their current legacy systems. While the term relational database may not mean much to you or me. However, it will be familiar to developers around the world. Which is the whole idea behind Chromia: create decentralized applications in a way that developers already know. Whether they work on large enterprise applications, games, or smaller applications. You can see the upside for this: no large investment required from companies to enter blockchain, and no learning curve for their existing development teams.
Chromia’s design will throw any scalability concerns for DApps out the window. For instance, many blockchains have simply mirrored Ethereum by making dapps a collection of smart contracts. Chromia takes a new approach making each dapp its own blockchain. Consequently, each dapp deployed on Chromia runs on a specific set of nodes. Known as creating a sidechain. Each dapp can also have its own tokens, its own monetization, and its own governance. Furthermore, dapp developers choose what works for their project such as not paying for every transaction and simply paying to host the dapp on the network. This enables unlimited horizontal scalability as each dapp can increase its total throughput by increasing the number of nodes used on its sidechain.
Meaning if your project becomes very popular and has millions of users: Chromia has a solution for you in place. There is no risk of network congestion causing your users to become unhappy and move away in frustration. For instance, we find implementations of dapps on Chromia in several sectors such as gaming, real estate, finance, and healthcare.
CHR Lighting Fast Transactions
Chromia aims to support 50 million token transfers per day per blockchain. The MVP version of their software will support this target. The team announced that transactions will be verified within 2 seconds. This will definitely be quick enough to support in-person or in-game payments. Furthermore, the platform will work in a similar way to how sharding works on Ethereum. Meaning, each blockchain within Chromia corresponds with its own set of validator nodes. And these nodes are a subset of all the nodes operating on Chromia, for network security, it runs a Byzantine Fault Tolerance (BFT) consensus algorithm.
Staking will also play a part in network security. However, Chromia is not exactly using a Proof-of-Stake (PoS) algorithm. The main difference is that holding more CHR does not result in having bigger payouts or more control over the network. Staking on Chromia is more similar to paying a deposit, you need to do it to access certain features such as deploying a Dapp or launching a node.
Native Utility Token: CHR
The native utility token for Chromia is CHR, users can use their CHR tokens with DApps on the platform and in turn, the DApps use CHR to pay for the transaction fees. These paid transaction fees reward block producers running nodes on the network. Chromia also enables dApps to create tokens backed by CHR for profit-sharing solutions. For example, allowing investors of a dApp project compensation directly in CHR (via a profit-sharing contract). Essentially, developers can create their own economic models for their dapps. Importantly, this can make income streams that are not solely CHR tokens. CHR tokens can also be staked which is a reward mechanism to keep the network secure. Namely, you can earn rewards being a system provider, running application nodes, or community nodes.
Scalability Solutions And Partnerships
One thing we have to mention straight away is that this is not vaporware! Chromia has already built and released the developer framework which will power their scalability solutions.
- Postchain – the only product on the market that combines an immutable blockchain with a database management system.
- Rell – the programming language created for developers to use on Chromia’s platform, which is heavily based off SQL. Documentation is also already very complete, which developers will find very handy.
The public testnet was successfully launched in June 2019. Supporting dapps such as: Chromia Vault, Chain of Alliance, Chromunity, Mines of Dalarnia. ChromaWay has also been very busy building partnerships within the industry and with game studios, to ensure their mainnet launch will follow up on the testnet’s success.
Here is a list of key partners:
- Green Assets Wallet
- Tech Mahindra
- Workinman Interactive
- Stockholm Green Digital Finance
- Indian Government
- NSW Land Titles
It should definitely be seen as particularly positive that they are already making partnerships with the very entities needed to enable and regulate blockchain technology being used in sectors such as land ownership and real estate.
- Circ. Supply: 345,823,809 CHR (35.36%)
- Current Max Supply: 978,064,794 CHR
- Initial Max Supply: 1,000,000,000 CHR
- Market Cap: $17,965,812 USD (20/07/2020)
- Current Price: $0.048 (20/07/2020)
- IEO Price: $0.05 USD
- Tokens purchased by investors: 232 Million (including bonus)
- Ecosystem Fund: 368 Million
- Promotions Fund: 250 Million
- Team (including founders and advisors): 100 Million
- System Node Compensation: 20 Million
- Conversion Contract: 30 Million
One thing to note is that it is quite difficult to follow the project’s token release schedule, you would just have to subscribe to their blog and read through all of their announcements – on that note the above data may be incorrect! The team is very transparent on how the allocations are being released or any changes. However, it is hard to follow any of the token release data in real-time. They are working on a dedicated page to display this very type of data feed. Hopefully, it will eventually be added to their block explorer. This would be a nice addition as there are lockup schemes in place for the team’s token allocation, and it is hard to follow when these tokens will be in circulation.
Chromia Roadmap: What to watch out for?
This sector of bringing business solutions to adopt blockchain technology, enabling traditional sectors to onboard easily is very heated. There is a lot of competition to solve these same scalability problems. Some competitors target specific industries and use cases. For example, gaming, requires the ability to process large amounts of data at high throughput. You can name EOS, Quarkchain, Zilliqa, UniBright, Icon, and Harmony – along with many others as competitors in the scalability space.
We recommend keeping your eye on Chromia’s announcements, and follow their recent developments closely as they move towards deploying their MVP testnet in Q3 2020. The project does not have a published Roadmap up on their website. Frustratingly, this makes it hard to follow what has been delivered. The only way is to follow their blog closely. I would hope to see a website update along with their MVP mainnet launch, that would go together nicely.
Here are some key features for the future:
- MVP Mainnet launch date.
- Mines of Dalarnia (blockchain game) to MVP.
- Chromunity (decentralized social network) to MVP.
- ERC20 Ethereum Gateway (ability to port Ethereum tokens over to Chromia).
- Staking (when MVP is launched staking will be live).
As we know in cryptocurrency, news can mean everything for a project’s price movements. If you hold CHR tokens then you should keep your eye on the roadmap’s progress, especially, if the team successfully launches their MVP to mainnet.
Where to buy CHR Token?
If you enjoyed reading about Chromia, you can find more blockchain reviews here. Stay safe and trade well.