What is Chromia (CHR) and how does it work? Exploring its innovative approach to decentralized applications

Chromia (CHR) is a blockchain platform designed for decentralized applications. It uses relational blockchain technology to enable dapps with a more flexible structure, making it easier to build and scale.

May 27, 2024 - 13:28
May 27, 2024 - 13:28
What is Chromia (CHR) and how does it work? Exploring its innovative approach to decentralized applications
Chromia (CHR)

What is Chromia (CHR)?

Chromia presents itself as a relational blockchain platform designed for building real-world decentralized applications (dApps) easily. It merges the familiarity and efficiency of relational databases, which underpin many aspects of modern life such as social networks and banking systems, with the security and transparency of blockchain technology.

By combining these technologies, Chromia offers developers tools to create a variety of applications, and it can function as a private, public, or hybrid blockchain. Its native token, Chroma (CHR), serves as a platform currency, facilitating transactions and interactions within the ecosystem. CHR can also be used for purposes like paying hosting fees and staking.

How does Chromia work?

Chromia integrates a blockchain into a database and adds a lightweight software layer for managing voting and consensus. This setup creates nodes that are distributed among independent participants. When a request to write data is initiated, it is sent to one of these nodes, which then shares it with the others. The nodes review the request and, upon reaching consensus, the data is written and recorded in the blockchain.

This approach stores both the blockchain data and application state in a relational database, offering flexibility, versatility, and consistency. This makes Chromia suitable for use as both an enterprise and an independent public blockchain. Additionally, Chromia can serve as a Layer 2 solution for Ethereum, reducing costs and increasing transaction speed.

Developers can leverage Rell, a programming language developed by Chromia that is efficient and based on SQL, to build various applications on the platform.

Who founded Chromia?

Chromia was co-founded by Henrik Hjelte as CEO, Or Perelman as COO, and Alex Mizrahi as CTO. The team had previously launched the Colored Coins blockchain token protocol and the Safebit Bitcoin wallet. The project received backing from notable names in the blockchain industry, including 21M Capital, Arrington XRP Capital, and Neo Global Capital.

The founders began their journey in 2012, developing tools for a publicly hosted application infrastructure that aligns with user needs. In 2014, they established ChromaWay, a free and open-source software company that was an early advocate of blockchain 2.0 technology, offering a platform for smart contracts and digital asset issuance and transfer. Chromia, launched in 2018, is a decentralized platform separate from ChromaWay's control.

What sets Chromia apart from others?

Chromia stands out from other blockchain platforms by leveraging relational databases, a technology widely used in various industries for decades. Its Rell programming language is designed to be more user-friendly and efficient compared to other blockchain languages, requiring fewer lines of code and enabling developers to work significantly faster.

The platform offers Chromia Vault, a wallet software for managing tokens and dApps on the Chromia blockchain. Additionally, Chromia Vault Single Sign-On enhances security by minimizing the need for password entry without compromising on security.

What contributes to the value of Chromia?

The value of the CHR token comes from its utility within the Chromia ecosystem. It is used by dApps for paying hosting fees, as a reserve for pegging their own tokens, and for paying fees to dApps and for staking. This generates demand for CHR from both dApps and users on the Chromia blockchain. With a finite maximum supply, the growth of the Chromia ecosystem and wider adoption of its dApps could lead to an increase in the price of CHR.

How many Chromia (CHR) coins are currently in circulation?

CHR has a maximum capped supply of 1 billion coins, which were generated at the launch of the Chromia system. Approximately 22% of this supply was sold to investors, while 10% was allocated to the founders, team, and advisors. The Ecosystem Fund received about 38%, and 25% went to the Promotional Fund, with the remainder designated for the System Node Compensation Pool and the Auto Conversion Contract. CHR tokens are released into circulation on a monthly basis, following a distribution schedule that extends into 2025 and beyond.

In May 2020, the circulating supply was reduced by 22 million CHR through a burn. As of now, the current supply stands at 812,434,439 CHR.

Other technical data

Chromia utilizes the Postchain framework, which is built to store blockchain data in a relational database. The platform is primarily developed in Kotlin and operates on the Java Virtual Machine, making it well-suited for server applications and offering access to a wide array of libraries. This framework allows Chromia to fulfill the demands of high-performance decentralized applications (dApps), including a one-second confirmation time, a transaction rate of at least 500 transactions per second (TPS) per sidechain, and an input/output capacity of at least 100,000 updates and reads per second.

How to use Chromia?

The Chromia platform is designed for developing decentralized applications (dApps) and has been adopted by numerous developers and businesses. Notable applications built on Chromia include the decentralized crypto options tool Hedget, the digital certificates platform Lingon, and the blockchain builder game My Neighbor Alice.

Within the Chromia economy, the CHR token serves as the standard platform currency. dApps can collect CHR as fees or use it as a reserve to back their own tokens. Additionally, CHR is utilized by dApps to pay for hosting fees, which in turn compensates the nodes. Individuals can contribute to network security by staking CHR, and Chromia has designated CHR token accounts for system-wide purposes, such as the development pool, system node compensation pool, and ERC-20 token pegging.

How to choose a Chromia wallet?

Chromia Vault is the project's proprietary wallet software, providing users with a secure means to store their keys and manage their tokens.

As an ERC-20 token, CHR can also be stored in any wallet that supports Ethereum. The choice of wallet will depend on your specific needs and the amount of CHR you plan to store.

Hardware wallets, such as Ledger or Trezor, offer the most secure option for storing cryptocurrencies, with offline storage and backup capabilities. However, they may require more technical expertise and are generally more expensive. These wallets are best suited for storing larger amounts of CHR and are more suitable for experienced users.

Software wallets are another option, being free and easy to use. They are available as smartphone or desktop applications and can be custodial or non-custodial. Custodial wallets manage and back up private keys on your behalf, while non-custodial wallets use secure elements on your device. While convenient, software wallets are considered less secure than hardware wallets and are better suited for smaller amounts of CHR or less experienced users.

Online wallets, or web wallets, are free and easy to access from multiple devices via a web browser. However, they are considered less secure than hardware or software wallets, as you are relying on the platform to manage your CHR. It's important to choose a reputable service with a strong security track record. Online wallets are best for holding smaller amounts of cryptocurrencies or for frequent trading.

What's Your Reaction?