TL;DR Breakdown
• Chia promises to be greener than other cryptocurrencies.
• Chia cryptocurrency avoids excessive energy consumption in mining.
The year has been incredible for crypto. Bitcoin has increased in value to six times its capitalization one year ago, and Dogecoin has gone bullish in the market. The non-fungible token (NFT) rise, has also taken a share in the crypto market spoils.
With the NFT growth, a new check has come, with news affecting Bitcoin and keeping the speculation bubble around it up. But Chia in its listing proposes to repair all the problems that currently affect cryptocurrencies. This new cryptocurrency tries to change the current payment method making it more secure.
Chia has been created by Bram Cohen, BitTorrent exchange system inventor. The cryptocurrency will be more profitable than others and very ecological.
What is a cryptocurrency?
Unlike currencies like the euro or dollar, cryptocurrencies do not depend on a central bank. These decentralized currencies joined the trade in 2009 when Bitcoin, the first cryptocurrency, was launched. Since its creation, Bitcoin has remained at the forefront in prices; the total value of Bitcoin exceeds $1.2billion.
Cryptocurrency transactions have increased, and many governments have explored them. The Bank of England is teaming up to navigate this area while Australia is trying to implement a cryptocurrency exchange. Germany has also embraced Bitcoin by promoting blockchain technology.
What differentiates Chia from Bitcoin in mining?
Bitcoin, like other cryptocurrencies, uses a “mining” system for tokens through a complex system. To do the work, you need hardware that supports the load because it takes a lot of energy. Mining in Bitcoin has produced a shortage of processors and other computer implements.
Chia tries to run the mining process using less energy; this is called a “space-time test.” With this system, the user has to have only enough space on their hard drive at the right time.
Therefore, Chia will not use as much energy as Bitcoin, reducing the massive graphics processors purchase. But, it will require more disk space which could cause other inconveniences.
Before Chia’s official launch, the cryptocurrency has spent more than one exabyte storing its data. This figure equals 1 million terabyte hard drives that a computer has on average.
The cost of hard drives in China has risen due to the boom caused by Chia. 12 terabyte drives soared 59% since February this year when Chia made its appearance.
Countries like Vietnam have also witnessed a shortage of storage units because of the Chia craze. There will likely be a shortage of these products in other countries if Chia takes off in value. Although the cryptocurrency is too new to be assured of success, it is certainly on the right track.
