This article is the sublimation of the calculation results from two our previously published articles about chia network efficiency comparison to other POW coins.
Just to remind, in this two articles I have calculated the production value of coin in euro per watt for six of the coins, based on their known electricity consumption and there current value. The next graph shows this results integrated in to one bar graph:
Graph is comparing value production comparison respectively. You can see that the least production per watt is for Monero (XMR) and that is to be expected since Monero is a Bitcoin fork who uses SHA256 algorithm. The algorithm being the first POW is the most energy intensive.
The real battle is between ETC and XCH, since XCH is little les than 2xETH. ETH remains the best “energy efficient” prof of work algorithm, and it remains to be seen what will happen when it blockchain migrates to the POS (prof of stake).
But migrating to POS is not such an easy feet, since the consensus has proven to be less safe, as the latest Solana hack can be seen “https://www.forbes.com/sites/jonathanponciano/2022/02/03/vc-backer-replaces-325-million-in-stolen-crypto-one-day-after-solanas-biggest-hack-ever/” since ETH has been announcing its blockchain migration for a year now.
Chia Network on the other hand is moving forward, its CAT1 standard (Chia Asset Token) was launched in November last year, and the Chia ecosystem is slowly being populated by asset tokens. DeFi exchanges like HashGreen, wallet apps like nucle.io, etc. are trading the tokens and XCH coins are trading on the other markets.
Thing is, the crypto market as a whole is at the down spiral for some time, Bitcoin has dropped from 65k to 35k, Ethereum has dropped from 4k to 2k, so the entire market has lost the value, but since currency like Bitcoin is here for 13 years now, we can say, without a doubt that this is normal behavior for crypto market as a whole. It has its ups and downs, and in the long run the value of crypto is rising with every passing year.
To get back on the track, for now XCH is only one of many other crypto currencies on the market, it is being traded on only a few markets, but the true purpose of XCH is to become a means of payment, I personally do not se it as a competitor of Bitcoin, but a competitor of Ethereum.
If I would to make a parallel with the real world, Bitcoin is Gold, and Ethereum is Money (euros, dollars, etc..).
Ethereum is coping with enormous gas fees, hence the problem with it being expensive to use as currency is popping up. Chia on the other hand has no fees, and has very fast transactions, supports smart contracts, so time will show if it will come close to replacing ethereum.
All that has to happen in the world for Chia to become a thing is for someone like Elon Musk to start selling its Tesla for Chia, or space flight tickets for Chia. Chia to open its market for selling goods for Chia coin, or maybe a drug cartel to start selling its coke for XCH. 🙂
The future of this project is very bright, if not the chia coin itself then for the technology that follows it.