In parallel with the increase in the popularity of DeFi systems, the interest in crypto money is increasing day by day.
With the increasing interest in the crypto money market, the search for altcoins is also gaining momentum. After the altcoins such as Dogecoin, Shiba, Reef, Pig coin, which have come to the fore recently, Chia Coin has also taken its place among the curious ones.
Cryptocurrency investors started their research to get information about the Chia Network, founded by Bram Cohen.
What is Chia Coin?
Chia Network, a blockchain and Smart Transaction Platform, was created in 2017 by Bram Cohen, the programmer of the BitTorrent protocol. In addition, Chia Coin uses the abbreviation “XCH” on exchanges.
The open-source project, which received a valuation of $ 500 million in its last investment round, has started to attract widespread attention.
The system, which rewards its miners with its proof-of-space tool enables mining with HDD and SSD hard drives. Seagate and Phison, today’s popular hard drive manufacturers, predict that hard drive prices will increase by 10 percent by the end of the year due to Chia.
Chia, which is on discs instead of video cards, is treated as nature-friendly and distinguishes it from other cryptocurrencies with these features.
Why is Chia Coin greener?
The hardware needed to mine cryptocurrencies using proof-of-work logic like Bitcoin and Ethereum consumes more power and emits heat.
Chia mining consumes much less power as it works with proof-of-space logic. Low power consumption also ensures that the heat emitted to the environment is less.
Although mining by a single person does not emit enough heat to harm the environment, mining facilities established on an area of hundreds of square meters pose a big problem.
Chia prefers to use the concept of farming, not mining. The distinction here is that mining requires more labor, while agriculture uses only the space in the landfill.
What makes Chia Network unique?
The hardware of mining cryptocurrencies using proof-of-work logic like Bitcoin and Ethereum consumes a lot of power and emits a considerable amount of heat. Chia mining consumes much less power because it works with a proof-of-space facility. Its low power consumption also ensures that the heat emitted to the environment is less.
Mining by a single person does not emit enough heat to harm the environment. However, mining facilities are established in the area of hundreds of square meters pose a big problem. Experts believe that the global temperature is increasing by two to three degrees due to mining events until 2033. These seemingly small numbers could spell the end of some species. Chia Coin emits much less heat than mining with a graphics card.
Chia prefers to use the concept of farming, not mining. The distinction here is that mining requires a lot of labor, while farming only uses the space in the landfill.
A crypto mining facility
The solo farming method, which is not in the pool system, is based on luck. You cannot get a fixed Chia reward using the solo method. Sometimes you can find too little Chia with this method, sometimes too much. Those who want to make a profit in this way need to establish a large farm facility. If you target to do more risky but higher potential farming, the solo method may be for you.
There are some necessary terms if you are dealing with the routine registration process. The most common one you will come across is ‘plot’. We can roughly translate the plot as a field. These fields take up 270 GiB of disk space; as a result, you can create a disk of at least 250 GB.
Another factor after plotting based on your free storage space is speed. We see the MH/S concept, which we are familiar with from Bitcoin and Ethereum mining, which indicates the mining speed, as MB/S in Chia.
SSD, HDD, and M.2 SSD
The speed of 7200RPM hard drives usually does not exceed 100 MB/S. Because SSDs can reach very high speeds, such as 3500MB/S, they can potentially farm 35 times faster than a hard disk. SATA SSDs on the market can reach read and write speeds of up to 600 MB/s. Speed higher than this might get achieved with M.2 SSDs that plug directly into the motherboard. It is up to your planning to farm with a hard disk or an SSD. If you think of making a Chia farm with a high budget, entering this business with high-speed and large-capacity SSDs will speed things up.
What problems does Chia aim to solve?
While Bitcoin (BTC) has proven revolutionary since its 2009 launch, parts of its underlying technology and underlying assumptions are starting to show their age. While Bitcoin’s Proof-Of-Work (PoW) algorithm and Unspent Transaction Output (UTXO) model have served it well, some of the underlying inefficiencies have been difficult to address.
As Bitcoin experienced increased adoption, transactions slowed, and fees soared. This lack of scalability has plagued the project for years (despite solutions like the Lightning Network) and has resulted in a few hard forks (the term given to the change to the protocol) like Bitcoin Cash (BCH).
Bitcoin’s PoW algorithm got its place on the basic assumption that it would be an underutilized CPU resource worldwide. Instead, inexpensive electrical disposable hardware has proven far better at PoW calculations than general-purpose CPUs. As a result, miners clustered in areas suitable for hosting large data centers. China is one such area, which currently accounts for 65% of all Bitcoin mining activity.
This issue has weakened Bitcoin’s decentralization principle, as mining is only possible for private entities with resources. Increased centralization reached its most dangerous point in July 2014, when Bitcoin mining pool gHash.IO briefly exceeded 50% of the network’s total computing power.
These huge mining farms have received negative attention from the public and regulatory authorities. Bitcoin has a larger carbon footprint than Sweden, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI). Bitcoin’s environmental impact remains one of the most popular arguments against crypto adoption and has prompted significant government pressure, particularly in China.
What makes Chia Coin (XCH) different?
Basically, according to some experts, Chia currently offers the same benefits as Bitcoin but with a more secure on-chain Smart Contract environment. Let’s not forget that the smart contract functionality on the Bitcoin network is limited, and developers can easily use Chia to get secure and advanced Smart Contracts.
Chia works with a new Blockchain programming language. This programming language is called Chialisp and is safe and easy to use for developers who want to start building their smart contracts on top of this Blockchain network. Chia claims that this Blockchain network is more transparent, easy to use, and ready for developers. Chia is a new blockchain network with a cryptocurrency called Chia coin. This cryptocurrency aims to make it easier and simpler to access cryptocurrencies and Blockchain networks.