- A unique and radical cryptocurrency token named Chia has emerged in the Chinese region
- Unlike Bitcoin, which is based on proof-of-work, and Ether, which is based on proof-of-stake, Chia tokens are authenticated based on proof-of-space
- The new crypto is yet to hit the global crypto market
As the world adapts to newer FinTech systems, particularly with Bitcoin taking center stage in the global economy, cryptocurrencies continuously evolve at a constant pace. Further and more efficient methods to mine cryptos are always highly sought after. A new, revolutionary cryptocurrency token named Chia is created by the renowned Bram Cohen, founder of BitTorrent.
Bitcoin’s energy consumption factor
As unique and secure as it is, Bitcoins and several other cryptocurrencies suffer from one major impediment – energy consumption. Data collected by Cambridge researchers reveal that Bitcoin mining consumes an average of about 121 terawatt-hours (TWh). Put in perspective, if all miners formed a nation, that nation would consume an energy equivalent that is greater than that of Argentina, UAE, and the Netherlands. The current financial climate is only poised to make miners use up more electricity to mine additional tokens, leading to a significant deterioration in its already poor carbon footprint.
Chia – a greener alternative
However, Mining Chia, which is based on a proof-of-space model, requires a lot less energy. Solid-state drives (SSDs) and hard drives consume less power and are inexpensive, too, concerning high-end GPU and ASIC processors needed to mine Bitcoins. This new crypto trend has led to a near-complete wipe-out of hard drive stocks in facilities all over China as miners flock to purchase hard drives with storage space ranging from 4TB to 18TB. Jianhe Jinwei, a manufacturer of high-end NVMe SSDs, reported that stocks of consumer-grade Glosway and Asgard SSDs had been sold out entirely due to panic buying among miners. Miners are also expected to turn to enterprise and data-center grade SSDs as they provide significantly more significant amounts of space with much lesser read/write times. As a result, hard drives and SSDs prices in China and Hong Kong are expected to increase by an average of $77. Companies are also mulling a ban on selling SSDs to miners as a possible solution to the current demand-supply gap.
Though Chia is not yet released in the market, it can cause ripples in the crypto realm once it releases.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.