Chia, created by Bram Cohen - the creator of bittorrent -, brings a new form of cryptomining: it uses HD blanks to mine.
The proposed protocol brings a new mining reward dispute mechanism. In Bitcoin, the system, called Work Test, requires the performance of a mathematical calculation that consumes high computational power and electrical energy. Chia, on the other hand, uses a mechanism called the Time and Space Test, which involves a simple calculation considering the storage space available on the mining machine.
The cryptoactive is proposed to be a more sustainable alternative than Bitcoin, known for consuming a lot of electricity in the mining process. The differentiated functioning of the new digital currency, however, is directly linked to the storage space available on the miner's computer, leading to a race for hard drives and SSDs in the market.
In Asia, where this cryptocurrency is beginning to gain strength, there is even a shortage of high-quality HDs and SSDs.
In both systems, agility is vital for miners who are rewarded per block. If in Bitcoin, the machine requires high processing capacity, in Chia the storage needs to be fast: the algorithm makes multiple writes and reads on the disk, so the faster equipment has the advantage.
Hence, the increased demand by Chia miners for high-speed SSDs, accelerating market shortages and overvaluing the price.
The problem is made worse as the deterioration of storage devices used in cryptocurrency mining is brutal.
It is estimated that the wear of hard disks and SSDs for the mining process is on the order of, in one year, 90% of the useful life of the hard disk (HDs are designed for useful life and 5 years on average). Apparently, by way of comparison, mining completely disables a 512GB SSD in two months, a 1TB in three months and a 2TB in six months.
This question really makes you think about the viability of this coin, not because of energy consumption, but because of the electronic waste caused by the unused HD.
Also because Chia has been increasing, in transaction value, much more than bitcoin and ethereum.
Despite the high investment in storage, Chia's mining is cheaper than cryptocurrencies such as Bitcoin and Ethereum, which have a strong impact on the graphics card market.
The Chinese newspaper South China Morning Post, puts, as an example, the 12 TB disks that have increased 60% since February, exactly when the new cryptocurrency appeared.
Since then, there has been a high demand for professional-quality hard drives of more than 8TB.
In this cryptoworld, there is no sustainability: electric light, video cards, now HDs, motherboards......the environmental cost will always exist.
Who will be the new global character who starts screaming: "Save the hard drives, save the hard drives!" ????
Time will tell!
