Newbie question about the blockchain/rewards

Hi everyone,

As the title say - a newbie question about the blockchain/rewards.
I looked into Bitcoin back in the past and I remember that point of running the BTC node was to maintain and verify the blockchain - more nodes means less chance for hacking it. Back then I did not pay attention where the “farmers” are paid for just running their nodes to support the blockchain.

Moving to Chia - there is not BTC “mining” - there are no coins to discover. One seems to be paid for maintaining the blockchain, proportional to the size of their plots.

In Chia - is my local node still having/maintaining a (partial) copy of the blockchain?
If “no” - how does the blockchain works then?
If “yes” - shouldn’t there be a lot more traffic and memory/disk activity related to this? (Is it because there is still very little Chai coin activity?)
Also, in case of “yes” - shouldn’t the farmers be paid more frequent? The current mode seems to concentrate the payouts in a way that is not very favorable to smaller farmers - something that Chai keeps saying on their site.

Thank you for your time in advance,
Simon

Actually the basic principle is not that different.
Blocks are still created by farmers. The blockchain system for chia ensures that the time it take is consistent by raising the difficulty if more farmers join.
The blockchain is still needed to verify everything and farmers get rewarded for “discovering” a block.

I don’t understand the underlying principles too well, If you want the details:
https://www.chia.net/assets/ChiaGreenPaper.pdf

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Thank you for the paper, I will read it in detail.
In the meantime, I am trying to understand what is the relationship between the plots and the blockchain - I see one of them as static and the other as very dynamic.
Is the blockchain stored outside - independent from the plots?

Yes the blockchain is like a public record of all transactions within the chia network.

Plots are used to create a new block of data to be added to the blockchain. So they are not part of the blockchain but they are needed to keep adding blocks to the chain.

Which block is created/won by which plot is also recorded in the chain

Somebody correct me If i’m wrong :sweat_smile:

Slightly different topic - IF farming supports the blockchain, then having the small farmers around is crucial for preventing fraud, but the current reward model is not very rewarding to them - 10+ years to get some traction?! I would prefer less, but more often.
I understand it’s the early days of Chia Coin, but this needs to be addressed soon, IMHO, or there will be trouble.

We can already see that relatively few pseudo-pools could conduct 51% attacks. I think for chia today it’s likely that’d decrease the value for them once detected. But that could be less of an issue/more temptation long term, especially if a real ecosystem builds around/on top.

When supported pooling comes up, it’ll be interesting to see what the distribution looks like…

One thing to keep in mind about the Chia pool system (If I understood it correctly)

Chia works differently from PoW coins. In a PoW system , pools have to actually combine the hash power into a single point to create blocks. But Chia is based on a game of chance for each plot to win a block. Pooling them together only serves to spread the rewards to create a stable flow of income across the participant.
The benefit of this is that you don’t actually have to combine all the plots into a single address. You just need to collect the rewards from the individual plots and divide them among the participants who signed on with that pool.

So even if a pool had 51% of the netspace, It would still need all those pool participants to join an be part of an 51% attack to make it work. Because the pool only controls the revenue and not the plots or the nodes. Individual farmer stay in control of those

Yes, assuming that this is a pool made from many individuals and not few whales throwing their resources behind Chia plotting and farming. Thinking of “cartels” and oligopolies.
Time will tell, I guess.