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  • A new green cryptocurrency called Chia uses a less energy-intensive method of minting new coins. Here are 6 things to know about the digital asset before it starts trading on Monday. | Currency News | Financial and business news

A new green cryptocurrency called Chia uses a less energy-intensive method of minting new coins. Here are 6 things to know about the digital asset before it starts trading on Monday. | Currency News | Financial and business news

By on May 1, 2021 0
Cryptocurrency mining.
  • A new green cryptocurrency called Chia (XCH) is expected to start trading on Monday, May 3.
  • Chia uses Bitcoin’s ‘proof of space’ and ‘proof of time’ instead of Bitcoin’s ‘proof of work’ to mint new coins.
  • The rise of Chia is already causing shortages and price increases among hard drive and SSD manufacturers.
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A new “green” cryptocurrency called Chia is expected to start trading next week. It was created by Bram Cohen, the inventor of BitTorrent, and uses what is known as “time and space evidence” to “grow” rather than “mine” new coins.

The model is a less energy-intensive method of producing digital assets compared to Bitcoin’s ‘proof of work’ concept, which has led to this currency being criticized for its use. so much energy like some whole nations.

Chia and the company behind it, Chia Network, have already caught the attention of investors.

Chia Network has the backing of big names like Andreessen Horowitz, Naval Ravikant and Cypherpunk Holdings, according to data from Crunchbase.

The company has also attracted listed crypto mining companies such as iMD companies.

“We’re going all-in on Chia,” said Rick Wilson, CEO of iMD, in a recent press release. “Through our extensive research, we believe Chia is here to stay and will be used globally. We believe our early decision to grow Chia will result in increased revenue for iMD.”

Chia Network posted a White Paper on Business describing its new cryptocurrency (XCH) on February 9 and launched “farm rewards” on March 19.

Chia will begin trading and trading on May 3.

Here are six things to know about the new cryptocurrency before it starts trading.

The “ proofs of space and time ” model

The “evidence of space and time” model is at the heart of Chia’s value proposition. The idea is that users, known as “farmers”, will “seed” their hard drives or SSDs with software that places cryptographic numbers in specific “plots”.

These “plots” are then allocated with blocks from the blockchain based on the percentage of total space a farmer has relative to the entire network. Then a VDF server, known as the “Timelord”, checks this block, allowing the chain to move forward and assigning XCH to the farmer.

Chia Network says the system will offer better security than Ethereum and reduce the energy expenditure required by Bitcoin’s “proof of work” model.

Read more: Self-made 29-year-old billionaire explains how he made 10% daily returns on million dollar crypto trades and how to find the best opportunities

Hard drive and SSD shortages and price increases

Chia’s “space and time proof” model may be a power saver, but the method is already creating problems for hard drive and SSD vendors.

A recent report by DigiTimes revealed that Taiwanese memory and storage maker Adata has seen a 500% increase in SSD orders since early April.

The South China Morning Post too reported that Chinese e-commerce platforms, including Alibaba’s Taobao and JD.com, have seen several models of enterprise-level hard drives with large capacities sold.

“Many people have inquired about the large hard drives for mining in Chia in recent days,” a customer service agent from a Taobao site told the South China Morning Post.

The increased sales of hard drives and SSDs are a result of new storage requirements to “cultivate” Chia.

If cryptocurrency ends up being as popular as other altcoins, the business model could put real pressure on supplies and prices from memory and storage manufacturers.

A new transaction programming language

Chialisp is the new intelligent transaction programming language from Chia Network.

The company claims its language combines the best aspects of Bitcoin’s “UTXO model” and Ethereum’s “Solidity model” to enable safer, less power-hungry features.

To learn more about Chialisp, check out Chia Network’s introduction to the language published by Bram Cohen in 2019.

No hard cap, and a strategic reserve to reduce volatility

Chia Network does not have a hard limit on the total number of Chia coins on its blockchain like Bitcoin does. Instead, the company prefers a predictable and continuous form of inflation.

“Being able to directly calculate a shared expectation of the total supply at any given time gives roughly the same financial benefit and peace of mind,” notes the company’s white paper.

Chia Network also holds a strategic reserve of 21 million XCH, in a nod to bitcoin, which it will use to reduce its coin’s volatility and mitigate possible crashes.

Read more: Crypto technical analyst explains why ethereum is expected to rise to $ 3,000 and is a better investment than Bitcoin at the moment – and how he analyzes when to buy cryptocurrency

Make public and adopt the regulations

Unlike many other cryptocurrency offerings, Chia has a formal company behind it, and it intends to go public.

“We hope to deposit and list our equity within the next six to 12 months,” Gene Hoffman, CEO and President of Chia Network said Decrypt.

Not only that, but Chia Network has also said it will pass the regulations because management has seen “scams and pranks” in the space hurting investors.

“It shouldn’t be controversial that investors deserve to be protected by public disclosure and one should certainly not sell investments to the public without this legally required transparency,” the company’s white paper states.

An agricultural push at home

Bitcoin mining has become increasingly difficult for home miners due to the expansion of publicly traded mining companies like Riot Blockchain and Marathon Digital Holdings. These companies use ASIC miners which have more computing power than the average home miner could afford.

This has made the rewards for mining Bitcoin at home no longer make financial sense for many miners, especially when energy costs are factored in.

With Chia, that could change. Home users will have the ability to compete for XCH by “ditching” their SSDs or hard drives and, at least for now, the lack of competition should make for a more profitable experience.

Chia is also a very accessible cryptocurrency. Gene Hoffman, CEO and chairman of Chia Network, says it was designed that way on purpose.

“It’s super simple. Just download the Mac or Windows version and double-click,” Hoffman said CoinDesk. “I’m pretty sure it will be the easiest cryptocurrency for normal people to validate.”

New cryptocurrencies cost a dime a dozen, but it’s rare to see big crypto investors come together with top developers to respond to a common criticism of crypto’s growing energy consumption.

While no one can say whether Chia will be successful or not, it is clear that the cryptocurrency offers something that most new altcoins do not offer with its ‘proofs of space and time’ model.

To learn more about Chia, check out the company corporate white paper zoom meeting February 11.