The sudden increase around Chia Coin has resulted in a massive demand for SSD and enterprise-grade storage hard drives.
Recently, there has been a lot of buzz around a new sustainable cryptocurrency called Chia, especially in China. The Chia currency has sparked a huge frenzy among Chinese miners. Chia Coin is now ready to be traded today, May 3rd, at 10 am PDT on the official platform.
Home of Chia
In addition, Chia Network’s IOU was listed on the Gate.io and all business transactions will take place on this platform. All Chia tokens are currently in their pre-minting phase. In addition, of the total supply of 21,410,000 Chia Tokens (XCH), the team controls 21,000,000 tokens and the rest is minted.
Created by the inventor of BitTorrent, Bram Cohen, Chia coins use the combination of “proofs of space and time” to “cultivate” instead of “mine”. This makes it less energy intensive compared to other “proof of work” models, such as Bitcoin (BTC). The Chia Network, the company behind the Chia currencies, has attracted significant investor attention.
Some of the biggest names in global investments and popular venture capital funds like Naval Ravikant, Andressen Horowitz and Cypherpunk Holdings supported this project. In addition, publicly traded cryptocurrency mining companies, such as iMD, have shown an interest in Chia. Rick Wilson, CEO of iMD said recently:
“We are going to bet everything on Chia. With our extensive research, we believe that Chia is here to stay and will be used on a global financial level. We believe that our initial decision to grow Chia will result in higher revenues for iMD. “
Proof of Space and Time Model
As I said, the entire Chia network and its native cryptocurrency rely on the Proof of Space and Time model. Users of the Chia coin, called “farmers”, will “seed” storage devices or SSDs with software with cryptographic numbers placed in specific plots.
From Chia’s blockchain network, these “lots” are awarded along with the blocks. Depending on the percentage of total space that the farmer contributed compared to the entire network. Later, a VDF server called “timelord” checks the block, thus allowing the chain to move forward while simultaneously granting them Chia coins.
The developers of the Chia network say the system reduces energy costs compared to the Bitcoin blockchain Proof-of-Work. In addition, he also claims to have better security than the Ethereum blockchain. Although the Chia model is an energy saver, it is still causing problems for hard drive storage and SSD manufacturers.
The craze over the Chia currency has led to massive demand for SSDs and hard drives. Several models of enterprise-grade SSDs are sold out on Chinese e-commerce platforms, such as JD.com and Alibaba. This also led to a significant increase of around 50% in the price of SSDs.
For example. before April 14, Alibaba listed an 8 TB hard drive for 1150 Yuan. The same is now available for 2160 Yuan. However, SSD maker Galax has warned users about cryptocurrency mining that requires excessive storage volume and speed. Only one requirement can void your SSDs’ warranty, Galax said.