Cryptocurrency has taken the world by storm over the past year. Yet, while some of the most popular coins have seen significant growth, others have not. One of those is Chia Network. Although it is only a few months old, the Chia Network (CHT), which is based on a new blockchain technology called Rchain, is already seeing an uptick in usage and profitability.
The blockchain has always been in the limelight as a technology that can genuinely bring about a more transparent and efficient future. However, a lot of blockchain technology projects have failed because of the lack of functioning or highly inefficient solutions. But this is not the case with Chia Network.
A few months ago, Bitmain launched the Chia Network, a cryptocurrency that mines a native token called Chia. The first day of launch, the price of the coin soared to a high of $0.03, before settling at around $0.010 for some time. Now, the price of Chia has been rising again, this time after news emerged that a mining farm in China had been successfully using the Chia Network to recover the costs of their operation.
Since the rise of the green cryptocurrency Chia (XCH), which uses free storage to verify blockchain transactions, the demand for hard drives and disk drives has increased. An analysis by research firm Context in April this year revealed a monstrous increase in sales through April 2020, as demand for high-performance storage devices exploded.
Sales in figures
Compared to last year, sales were up 240% as less than 200,000 enterprise drives of 10 TB or more were sold. Sales were also up 167% as nearly 250,000 NAS hard drives were sold for consumers and gross sales of surveillance drives reached nearly 200,000, up 116%. It’s probably Chia, Gurvan Meyer, senior business analyst at Context, told The Register. He added that the surge in demand after Chia’s launch took everyone by surprise, including major hard drive manufacturers such as Western Digital and Seagate. We’ve added something we didn’t really expect – increased demand for cryptocurrencies, said Seagate CFO Gianluca Romano, whose stock is up. A positive side effect of the surge in demand was the increase in Western Digital’s stock price.
Search for land for green farming
Developed by BitTorrent inventor Bram Cohen, Chia solves the problem of energy consumption in industrial mining, as it is based on the so-called spacetime consensus proof algorithm, a more energy-efficient alternative to the widely used proof of work (PoW) and proof of rate (PoS). Simple and environmentally friendly home mining or Chia farming does not require large mining caches or ultra-budget hardware, as the algorithm relies on large capacity SSDs or hard drives. The highest price for Chia was 15. It passed the $1,600 mark in May, but since then the price has steadily declined, falling 49.05% last month. Will Chia slow down the purchase of farm machinery and bring down the skyrocketing prices of hard drives?
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Although blockchain technologies have allowed people to transact with each other without a middleman for the first time, this is not without its challenges. In the traditional banking system, there is a fixed exchange rate between fiat currencies and the assets held by the bank, but there is no fixed exchange rate between fiat currencies and cryptocurrencies. This can lead to a problem known as “the double-spending problem”, in which a cryptocurrency can be transferred between two parties, but at the same time the same coin can be spent twice.. Read more about best ssd for chia mining and let us know what you think.
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