Bitcoin might be the first cryptocurrency but has faced an unfortunate environmental backlash because of its extensive power consumption. It is one of the factors that led to the downfall of the crypto’s price and is facing imminent risk due to China’s new energy consumption restrictions.
This raises the question if the future of cryptocurrencies is at stake? However, a powerful alternative such as Chia that claims to be an eco-friendly alternative to Bitcoin, might be the answer the crypto ecosystem is looking for.
Chia, an alternative to Bitcoin
Chia Network came into existence in 2017 and is a blockchain-powered platform that focuses on cryptocurrency mining’s environmental implications. Not unlike other cryptocurrencies, Chia also runs on blockchain. However, it has a smaller carbon footprint than Bitcoin, as stated by its inventor Bram Cohen, who is also the inventor of BitTorrent, a popular torrent client.
According to Bram, Chia’s “proofs of space and time” to verify transactions differs from other cryptocurrencies, giving it the edge. This protocol uses unused disk space of miner’s hard drives making it more energy-efficient than the popular “proof of work” protocol.
Chia recorded its first trade earlier this week, joining the ever-growing list of cryptocurrencies.
Farming vs. Mining
Chia uses a process of Farming to generate the token that relies on using unutilized hard disk storage. Whereas, generally, in crypto mining, the collective power of different machines is used, which inevitably raises the power consumption.
Farming participants can also use the “proof of space and time” to show the data they have stored over time. This protocol differs considerably from the “proof of work” protocol used by most cryptocurrencies such as Ethereum and Bitcoin, which requires a significant amount of computing power and energy to power the operations.
Chia is aimed to be more accessible and environmentally friendly. “We’ve designed our software with the intention of it being usable by anyone who can use the internet,” Cohen told CNN Business. He added that as Farming does not require massive power, “it can be done in a normal apartment,” making it more accessible.
Chia Network offers a blockchain transaction platform, Mainnet, that can allocate the space on your hard drive to Farm Chia. To farm Chia, users do not require expensive equipment and ample space, which amps up the electricity bills.
Verdict: Is it Environmental Friendly?
When talking about mining or Farming cryptocurrencies, environmental-friendly is always a relative term. Chia also requires electricity for its operation while in much less amount. However, the efficiency of the “proof of space and time” protocol can only be observed after it has been in rotation for some time. Chia is already listed on different crypto exchanges such as OKex, Gate.io, and Huobi.
Other prominent cryptocurrencies are not far behind in their efforts to become environmentally friendly. Ethereum is working on an Ethereum 2.0 protocol “proof-of-stake model” that will allegedly consume less power. These combined efforts from the crypto community will help address the threat that crypto mining poses to the environment.
Zionodes Launches Chia Hashpower!
Zionodes launches 10 PiB of Chia Hashpower in Canada. There are several benefits that Zionodes provides including flexible Hashpower plans with dedicated IDC level customer support services with top storage server brands with 3 years of official warranty.
Stay tuned for more!
