Since the start of the cryptocurrency movement, a lot has been said about how they are mined and the hardware that comes with them. Bitcoin mining has changed how investments become since. It posed a lot of challenges and issues that still need to be tackled.
Solving the major problems
The crypto market is one which is dynamic and very volatile. New coins are created and they come out to provide more options every time. Some make it some don’t but one that has quite taken a lot of interest recently is Chia. From the onset, Chia has been said to overcome some of the biggest problems with Bitcoin and that is mainly in the area of mining.
Where did it come from?
Bram Cohen is the man behind the Chia Network. Cohen is also the founder of BitTorrent and coupled with the idea of solving the biggest issues of Bitcoin mining, came up with The Chia Network. According to its origins, it uses a smart transaction programming language known as Chialisp. This makes it powerful, secure and easy for auditing purposes. This would be the first blockchain that uses the new Nakamoto-style consensus algorithm which has not been seen since Bitcoin. The underlying model of this blockchain is through using disk space that is not used.
More sustainable ways to mine
Mining Bitcoin is no simple matter. It is a known fact that the energy needed to mine for Bitcoin could surpass that of a single country annually and that would be a big problem in the future. This is both energy-consuming and damaging to the environment. Chia is the answer to this as it utilizes storage more instead of processing power. This is reflected through a concept known as ‘Proof of Work’.
Proof of Work
This refers to the system used to confirm transactions carried out in Bitcoin and most of the other cryptos. To do this, raw computational power is used and they are calculated by miners. Power from GPUS is the main source here. The Chia Network meanwhile uses ‘Proof of Space and Time’ which is a different model altogether. Instead of processing power and GPUs, Chia uses storage space where users get rewarded when they offer their storage space to this network. In other words, you no longer need any special hardware to be part of this and only need to have storage space to offer. The more space you provide, your rewards will follow accordingly.
Is that the solution?
While many are not jumping onto the bandwagon as yet, the future is there for most to see. When the whole Bitcoin mining potential was realized, miners across the world started going along, especially the communities in China knowing fair well the drawbacks and requirements of heavy hardware. At the moment, Chia is yet to be traded and those who know this are already starting to take notice. In fact, communities in China have been reportedly buying storage in bulk, foreseeing that there might just be a future in this.
If not controlled, this situation could well end up like how it could be when Bitcoin mining happened. But it has already begun as prices of hard drives and SSDs have already increased in markets like Hong Kong and China with the higher-end ones between 4 and 18 TBs facing a shortage of stock in their markets.