BitTorrent creator Bram Cohen is launching a cryptocurrency based on "Proof of Space"
Bram Cohen, which co-founded BitTorrent in 2001, is preparing to launch a new cryptocurrency based on a "space test" algorithm.
Cohen states that proof of the spatial consent algorithm allows cryptocurrency to function as a "greener" version of bitcoin. The news was reported by Wired, who has further details on the start of Chia by Cohen and his proposed Chia cryptocurrency, secured by a test of spatial consent.
This startup has the goal of making cryptography accessible to the financial sector without affecting the planet. To do this, Chia will use the empty space on users' computers. That's where the name "space test" comes from.
The company is officially organized under the name of Chia Network. Cohen plans to move the company's offices to San Francisco in the near future. This move is significant because the headquarters of the Chia Network office are right next to the US Securities and Exchange Commission (SEC) office.
Bram Cohen, who serves as CTO and Chairman at the Chia Network, is "happy" to have the SEC right next to his company because he believes the regulations will help fight offenders, advancing the crypto industry as a whole and allowing cryptographic companies more legitimate to move forward
Chia will hold an IPO in the near future
Having the SEC next door will also help Chia solve another problem: launching an IPO.
Cohen and the Chia network are not planning to launch an ICO; instead, the company is planning to become public through a traditional initial public offering (IPO). The Chia network will present unlisted shares in the small capitalization public stock market by the end of 2018.
The Chia network may not be in possession of an ICO, but the company is still planning to launch its native token called Chia Coins.
How will Chia's network make money?
The Chia Network plans to generate revenue by collaborating with the banks. In particular, according to the Wired report, the Chia Network will generate revenue "by helping banks to build systems to use cryptocurrency … for functions such as international transfers".
The Chia network also plans to keep a "significant slice" of Chia's total supply of coins. This could mean that Chia will function similarly to Ripple with its XRP digital currency. The XRP is officially decentralized, but Ripple holds most of the total currency offering and Ripple generates revenue by periodically selling XRP to the market.
How will the space test work?
What exactly is a demonstration of the mechanism of spatial consent? How can the Chia currency cryptocurrency offer secure transactions while remaining respectful of the environment?
It is not entirely clear how the proof of space will work. However, we know it will be a minimal cryptocurrency.
The Chia coin can be extracted without using huge amounts of electricity. It looks like it works on a pole-like system: Chia coin miners can maximize their chances of winning a Chia coin block reward by accumulating a large amount of disk storage together.
One of the reasons Chia coin It is considered ecological because there is already a significant amount of empty storage space on computers around the world. Chia Coin will benefit from a resource that is not currently used, unlike the test of blockchain work, which drain electricity at a rate similar to the largest countries in the world.
That's where the "test of space" comes from: it's the proof you have space on a hard drive.
Other expected features of cryptocurrency will include the ability to hold funds for commitment, automate contracts and allow chargebacks. According to Cohen, the goal is to make the Chia currency "the first cryptocurrency based on our technology". Cohen wants to make the Chia coin "a bitcoin competitor, but better".
The Chia currency cryptocurrency is preparing to launch in 2019. Chia has already raised $ 3.4 million from investors such as Andreesen Horowitz and Greylock Partners. Going forward, the biggest challenge for Chia will be to conduct a regulated IPO after approval by the SEC.
Stay tuned for more information on Chia by Bram Cohen as he continues to develop his spatial protocol test.