Chia Network is a brand new cryptocurrency that is rapidly gaining traction. Bram Cohen, the inventor of the peer-to-peer BitTorrent Network, founded the company. The Chia blockchain has a vibrant open-source developer community that has contributed significantly to the codebase. Chialisp, the Chia Network’s own on-chain programming language, is also available. As Chinese cryptocurrency miners flock to this new cryptocurrency, it is currently expected that we will face a Hard Drive shortage, as well as a price increase. On May 3rd, 2021, the cryptocurrency is expected to begin trading.
Why would this result in a shortage of hard drives and a price increase?
Bitcoin is the most common cryptocurrency at the moment, and mining it takes a lot of computing power and electricity. People who mine cryptocurrencies have a strong demand for graphics cards, which drives up the price of graphics cards. And now, unlike Proof of Stake (PoS) and Bitcoin’s PoW mechanism, Chia Network uses the Proof of Space and Time (PoST) Algorithm. As the network relies on hard drive storage space for its consensus process, the price of hard drive storage is expected to increase as well. Proof of Space is a technique for allocating unused hard drive space for storage, and it must be linked to Proof of Time to be used as a consensus process. Chia network participants are referred to as Farmers rather than Miners. Multiple models of enterprise-grade hard drives with high capacity have already sold out on Chinese e-commerce sites Taobao and JD.com, according to an online media outlet.
What is Cryptocurrency?
“A cryptocurrency is a digital or virtual currency that is protected by cryptography, making it almost impossible to counterfeit or double-spend,” according to Investopedia. Many cryptocurrencies are decentralized networks based on blockchain technology, which is a distributed ledger implemented by a network of computers.