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- Chia cryptocurrency touted as ecologically friendly cryptocurrency
- Chia uses the Proof of Space and Time consensus model
- Sceptics say Chia produces more e-waste
The environmental impact of Bitcoin mining has been raging across media, and the effects are already being seen. Tesla’s decision to stop accepting bitcoin as payments for its electric car and Elon Musk’s flip flop regarding environmentally friendly cryptocurrencies have been attributed to environmental concerns.
Founded by Brian Cohen in 2017, Chia cryptocurrency has been gaining a lot of attention. It has been dubbed as an environmentally friendly alternative to Bitcoin. Most cryptocurrencies like Bitcoin(BTC) or Ether require powerful computers which gobble thousands of GW of power to solve complex equations to earn coin rewards. However, Chia uses excess storage in your computer.
Proof of Space and Time consensus model
The working of Chia is a bit different from the Bitcoin mining process. Instead of “Proof-of-Work” mining which requires high-end computers, Chia uses the Proof of Space and Time consensus model. Miners are needed to seed spare hard disc space into pieces of space cryptographic numbers. In return, they earn a chunk of XCH cryptocurrency while securing the network. While Bitcoin(BTC) requires enormous quantities of power and GPU for mining Chia is a storage-centric spin on crypto mining. It fills up spare space on a hard disk with data, and the more data space one shares, the more is his earnings.
It aims to turn XCH digital coin into a worldwide cryptocurrency.
The approach is more eco-friendly since it does not require large amounts of energy to run powerful GPUs or specialized mining rigs. Chia Networks aims to turn XCH digital coin into a worldwide cryptocurrency. It has big backers. Chia Networks raised $61 million in funding at a $500 million valuation. Chia founder and CEO Bram Cohen wants to make the company public. Interestingly Cohen is also the founder of BitTorrent.
However, the idea that Chia is an environmentally friendly alternative to Bitcoin(BTC) is a bit of a misnomer. Chia mining will indeed create a shortage of consumer solid-state drive (SSD) in a matter of weeks. SSD are for domestic use, and it will soon wear out considering the immense write demands of Chia’s farming model.
German cloud storage provider Hetzner had to ban the mining of Chia after its demand surged. Hetzner tweeted that Chia mining is extremely stressful on hard drives. Chia Network is growing at a very fast rate, and more and more miners are seeding plots. The mining is in the order of 12 exabytes this week and growing nearly a full exabyte within 24 hours. Chia Network popularity is driving the SSD rates higher, with China starting to hoard SSD in anticipation of an increase in demand in the coming month.
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.
