Chia – Bitcoin rival caused a global shortage of hard drives
Incorporated in August 2017, Chia aims to develop an improved blockchain and smart transaction platform. Based on the Proof of Space and Time algorithm, Chia was created by Bram Cohen. Bram is also the inventor of BitTorrent.
Chia is the first enterprise-grade digital money and Chialisp is the new smart transaction program language behind this new powerful, easy to audit, and secure Chia network. Chia Network Inc., has more than doubled its valuation after raising US$ 61 million from investors including Richmond Global Ventures and Andreesen Horowitz.
Chia an Alternative to Bitcoin
Though Chia was introduced as an alternative to Bitcoin with a more “greener” approach, it has instead caused a global shortage of hard discs. The president of Chia Network– Gene Hoffman, admits that “we’ve kind of destroyed the short-term supply chain”, but he denies it will become an environmental drain.
The Bitcoin network is fully dependant on the miners and uses the proof of work system to compensate the miners with rewards for their work. With a total electricity consumption of 20863Twh Bitcoin accounts for 0.53% of total world consumption.
What is Proof-of-Space and Time?
By allocating unused hard drive space for storage space, provers can “seed” this unused space on their hard disk with a help of software. These users are called “farmers” and a farmer’s probability of winning a block is the percentage of the total space that he has compared to the entire network. Proof of time requires a small period of time to pass between blocks. The fastest one will always finish first and it takes only one fast and fair Timelord on the network to complete a block and move the chain forward.
“We want to make digital currency easier to use than cash,” Hoffman, said in an interview. He called the fresh funding “rocket fuel” for hiring and accelerating the company’s ambition to become a trading and payment system used by governments, banks, and other institutions. He further said he is surprised how fast the hard disc space devoted to Chia has increased and accepts that this will cause some disruptions to the supply chain for some time period.
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