What is cryptocurrency Chromia (CHR) and how does it work?

What is Chromia (CHR)?

Chromia describes itself as a relational blockchain platform that makes it easy for people to build dApps in the real world. The modern day-to-day world is powered by relational databases – social networks, banks, the web – and this technology makes it easy to manage data as it is based on a mathematical foundation with decades of optimization.

Chromia combines relational databases with blockchain technology to facilitate dApps with the user-friendliness, power, and logic of a proper database. Developers can make use of the platform’s tools to build a range of applications and Chromia can be used as a private, public, or hybrid blockchain.

The native token, Chroma (CHR), is designed to power the platform and link users, developers, and investors in a mutually beneficial relationship. As well as being a platform currency, CHR can be used for paying hosting fees, staking, and other system-wide purposes.

How Does Chromia Work?

Chromia puts a blockchain inside a database and adds a light software layer for handling voting and consensus. This creates nodes, which are distributed among various independent participants. When a request to write data is made, it goes to one of the nodes which share it with the others. The nodes inspect the request and once they are in agreement the data is written and logged in the blockchain.

The blockchain data and application state are stored in a relational database, providing flexibility, versatility, and consistency. This makes Chromia ideal for use as both an enterprise blockchain and an independent public blockchain. Chromia can also be used as a Layer 2 to Ethereum, making development and transactions cheaper and faster.

Developers can build a range of applications using Rell, an efficient and universal programming language created by Chromia and based on SQL.

Who Are The Founders of Chromia?

Chromia was co-founded by CEO Henrik Hjelte, COO Or Perelman, and CTO Alex Mizrahi. Members of the team had previously founded blockchain token protocol Colored Coins and Bitcoin wallet Safebit. The project also had backers who are prominent in the blockchain space, such as 21M Capital, Arrington XRP Capital, and Neo Global Capital.

The journey began in 2012 when the founders began working on the tools to provide a publicly hosted application infrastructure which is truly aligned with the needs of users. In 2014, the team founded ChromaWay, a free and open-source software company which was an early pioneer of blockchain 2.0 technology and provides a platform for smart contracts and issuing and transferring digital assets. This led to the creation of Chromia in 2018, which is a decentralized platform and not controlled by ChromaWay.

What Makes Chromia Unique?

Chromia differentiates itself from other blockchain platforms through the use of relational databases which provide decades of real-world enterprise technology used in all industries. The platform’s Rell programming language prides itself on being easier to learn and more efficient than other blockchain languages. It permits fewer lines of code, allowing developers to code seven to ten times faster.

The Chromia Vault is a wallet software that provides users with somewhere to manage their tokens and dApps on the Chromia blockchain, while the Chromia Vault Single Sign On is a unique feature which reduces the need to enter passwords without compromising on security.

What Gives Chromia Value?

The CHR token derives value from its utility within the Chromia ecosystem. dApps can use CHR to pay hosting fees and as a reserve to peg their own tokens. It can also be used to pay fees to dApps and for staking. This creates demand for CHR from dApps and users on the Chromia blockchain, and with a finite max supply, the expansion of the Chromia ecosystem and broader adoption of its dApps could potentially mean an increase in CHR price.

How Many Chromia (CHR) Coins Are In Circulation?

CHR has a capped max supply of 1 billion coins, which were created upon the launch of the Chromia system. About 22% of the supply was sold to investors and 10% was allocated to the founders, team, and advisors. About 38% was allocated to the Ecosystem Fund and 25% to the Promotional Fund, with the rest being for the System Node Compensation Pool and the Auto Conversion Contract. CHR is being released into the circulating supply on a monthly basis, according to a release schedule that will see tokens distributed into 2025 and beyond.

The circulating supply was reduced in May 2020, following the burn of 22 million CHR. The current supply is CHR.

Chromia CHR

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Ethereum ETH

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XRP XRP

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Other Technical Data

Chromia is based on the Postchain framework which is designed to store blockchain data in a relational database. It is implemented largely in the Kotlin programming language and runs on the Java Virtual Machine, which is geared towards server use cases and has a large number of libraries available. This framework enables Chromia to meet the requirements of high-performance dApps, namely a one-second confirmation time, a transaction rate of at least 500 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 for building dApps and has already been used by many developers and businesses. Applications built on Chromia include the decentralized crypto options tool Hedget, the digital certificates platform Lingon, and the blockchain builder game My Neighbor Alice.

The CHR token is used as the standard platform currency within the Chromia economy – dApps can collect it as fees or use it as a reserve to peg their own tokens. It is also used by dApps to pay hosting fees, thereby compensating the nodes. Anyone can help secure the network by staking CHR and Chromia has special 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 own wallet software where users can keep their keys and manage their tokens.

As an ERC-20 token, CHR can also be stored in any wallet that supports Ethereum and the wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical know-how and are a more expensive option. As such, they may be better suited to storing larger amounts of CHR for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may therefore be better suited to smaller amounts of CHR or more novice users.

Online wallets or web wallets are also free and easy to use and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your CHR, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your CHR tokens without hassle. Storing your CHR with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling CHR, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Chromia Staking

Anyone can help secure the Chromia network by staking their CHR, which enables users to participate in programs which require staking, such as governance experiments, provider stake delegation, and potentially early access to applications and promotional events.

It takes at least two weeks to withdraw tokens that have been staked. As of May 2021, about 32 million CHR have been staked and receive a governance reward of 25% APR.

Bottom Line

Chromia addresses many of the shortcomings of other blockchain platforms by combining blockchain technology with relational databases. Its unique architecture facilitates the building of secure, user-friendly dApps that can scale to millions of users, while Chromia’s unique tools and programming language are designed to improve productivity and efficiency for developers.

The platform’s native token, CHR, fosters a mutually beneficial relationship between users, developers, and investors, while providing utility as a platform currency and for paying hosting fees, staking, and system-wide purposes.

Many applications have already leveraged Chromia’s technology for enterprise, gaming, and decentralized finance. As blockchain becomes ever more prevalent in everyday life, we could see yet more projects turning to Chromia for its efficiency and versatility. This could lead to Chromia’s ecosystem and cryptocurrency becoming more valuable in the future.

Chromia FAQ

What applications have been built on Chromia?

In addition to the ones already mentioned, Chromia has been used for the building of many other projects, including Green Assets Wallet, LAC PropertyChain, and games such as Mines of Dalarnia and Chain of Alliance.

What type of token is CHR?

Chromia’s utility token, CHR, is currently an ERC-20 token, but once the Chromia mainnet launches, the ERC-20 tokens will transition to native ones.

How to Buy Chromia

Buying CHR is as easy as visiting Kriptomat’s how to buy Chromia page and choosing your preferred method of payment.

How to Sell Chromia

If you already own CHR and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Chromia Price

Chromia’s price is influenced by a lot of the traditional factors such as project news and developments, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. 

Also, as there is demand for CHR from dApps and developers on the Chromia blockchain, the price of CHR will likely be affected by the expansion and adoption of the Chromia ecosystem.

The current CHR price is EUR.

The 24-hour trading volume of CHR is EUR. CHR is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of CHR.

Register now to begin your journey into the world of Chromia and cryptocurrencies with Kriptomat!

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