Recent studies confirmed that a single Bitcoin transaction requires as much electricity as the average American home does in an entire week. To address the environmental concerns posed by Bitcoin, the BitTorrent creator, Bram Cohen, created a new cryptocurrency called Chia, which is more environmentally friendly.
Chia will launch a cryptocurrency which works differently compared to other blockchain-based cryptocurrencies. Whereas cryptocurrencies. such as Bitcoin, as based on electricity work proofs, Chia will be time- and storage-based. This means that Chia will have the capability to utilize cheaper and readily available unused space on hard drives to verify its blockchain.
According to Cohen, the driving force behind Chia is essential to make a more decentralized, yet environmentally responsible, Bitcoin. Cohen's two main concerns with Bitcoin are its contribution to climate change and its market volatility. These are created by Bitcoin miners who have inexpensive access to electricity resources, or who outsource their electricity needs. Cohen is hoping that Chia will address both concerns.
In order to verify its blockchain, Bitcoin requires proofs of work. To create a fraudulent blockchain would be too expensive to pull off, as a fraudulent blockchain could never have as many proofs of work as the legitimate blockchain. However, certain individuals have an undeniable advantage when it comes to Bitcoin mining, such as individuals with easy access to low-cost electricity or miners who live in cold climates where fans to keep their mining rigs from overheating aren't needed.
Instead of an overly-expensive and environmentally damaging process, Chia relies on file storage proofs, which most users already have. Once the proofs of storage are combined with proofs of time, Chia proves a formidable and novel blockchain combination. Cohen readily admitted that while he’s not the first person with an idea of this kind, he’s the first to be able to implement it successfully. Especially since the idea requires extensive computer science and coding knowledge.
Cohen has built up a formidable reputation over the last two decades. After creating the concept of torrenting in the 2000s, Cohen was employed by Steam for Valve. Afterwards, he spent his time developing a new protocol which addressed peer-to-peer video transfers at BitTorrent. Since this, however, the company has collapsed and had been restored. According to Cohen, the company does not require his input every single day and he decided to leave the company. This was when the Chia Network was created in August this year.
Cohen recruited the COO of Tradehill, Ryan Singer, to raise funds for Chia so that the company could start hiring employees. However, Cohen has not yet confirmed how much money Chia raised. Although he did state that while the company was not ready to confirm the exact number, it definitely exceeded their expectations. Currently, the company aims to conduct presales during the second quarter of 2018. The cryptocurrency is currently scheduled to launch towards the end of 2018.
While Cohen’s expertise is undeniable, it remains to be seen if Chia can become a worthy competitor to Bitcoin. Cohen stated that the company intends to modify the Chia cryptocurrency's legal status, in addition to several other technical tweaks which are easy to implement before the cryptocurrency has launched.
Cohen concluded by stating his enthusiasm for the upcoming challenge. While he admitted that this is a rather hefty obstacle, he seemed optimistic and eager to start.
Chia will launch a cryptocurrency which works differently compared to other blockchain-based cryptocurrencies. Whereas cryptocurrencies. such as Bitcoin, as based on electricity work proofs, Chia will be time- and storage-based. This means that Chia will have the capability to utilize cheaper and readily available unused space on hard drives to verify its blockchain.
According to Cohen, the driving force behind Chia is essential to make a more decentralized, yet environmentally responsible, Bitcoin. Cohen's two main concerns with Bitcoin are its contribution to climate change and its market volatility. These are created by Bitcoin miners who have inexpensive access to electricity resources, or who outsource their electricity needs. Cohen is hoping that Chia will address both concerns.
In order to verify its blockchain, Bitcoin requires proofs of work. To create a fraudulent blockchain would be too expensive to pull off, as a fraudulent blockchain could never have as many proofs of work as the legitimate blockchain. However, certain individuals have an undeniable advantage when it comes to Bitcoin mining, such as individuals with easy access to low-cost electricity or miners who live in cold climates where fans to keep their mining rigs from overheating aren't needed.
Instead of an overly-expensive and environmentally damaging process, Chia relies on file storage proofs, which most users already have. Once the proofs of storage are combined with proofs of time, Chia proves a formidable and novel blockchain combination. Cohen readily admitted that while he’s not the first person with an idea of this kind, he’s the first to be able to implement it successfully. Especially since the idea requires extensive computer science and coding knowledge.
Cohen has built up a formidable reputation over the last two decades. After creating the concept of torrenting in the 2000s, Cohen was employed by Steam for Valve. Afterwards, he spent his time developing a new protocol which addressed peer-to-peer video transfers at BitTorrent. Since this, however, the company has collapsed and had been restored. According to Cohen, the company does not require his input every single day and he decided to leave the company. This was when the Chia Network was created in August this year.
Cohen recruited the COO of Tradehill, Ryan Singer, to raise funds for Chia so that the company could start hiring employees. However, Cohen has not yet confirmed how much money Chia raised. Although he did state that while the company was not ready to confirm the exact number, it definitely exceeded their expectations. Currently, the company aims to conduct presales during the second quarter of 2018. The cryptocurrency is currently scheduled to launch towards the end of 2018.
While Cohen’s expertise is undeniable, it remains to be seen if Chia can become a worthy competitor to Bitcoin. Cohen stated that the company intends to modify the Chia cryptocurrency's legal status, in addition to several other technical tweaks which are easy to implement before the cryptocurrency has launched.
Cohen concluded by stating his enthusiasm for the upcoming challenge. While he admitted that this is a rather hefty obstacle, he seemed optimistic and eager to start.