The cryptocurrency sector is populated by enthusiasts every day. This makes the extraction process more expensive with increasing energy requirements. However, the founder of BitTorrent is building Chia, which will be a proof-of-space cryptocurrency (PoS) unlike Bitcoin proof-of-work (PoW). According to the creator, this will be a better cryptocurrency than Bitcoin (BTC).
According to a WIRED report, Bram Cohen founded Chia as an alternative to Bitcoin. In particular, Cohen has made a controversial reputation with his goal of "democratizing" the Internet. From dealing with thousands of lawsuits by content creators, now it wants to disinfect the cryptocurrency space.
Chia better than Bitcoin while crossing two sectors
The WIRED report notes that Cohen wants to create a crypto-currency that is acceptable to industry. However, the currency will not be symbolic of what cryptocurrencies are today.
The Chia Network was launched in 2017 after Cohen left BitTorrent. In fact, BitTorrent is currently under new management after being acquired by TRON. In particular, the currency will try to balance between traditional financial institutions and the blockchain network. According to Cohen, who is President and Chief Technology Officer (CTO) of Chia, they will facilitate monetary transactions.
Interestingly, the person who once facilitated the illegal transfer of files over the Internet now wants to facilitate money transfers. However, the main goal here is to change the relationship between the blockchain industry and the traditional financial industry.
For Cohen, Chia will not focus on the initial supply of digital coins. Note that this is one of the reasons why the first coin offers (ICO) are not interesting. In addition, many ICOs have turned out to be scams that have alienated more people from the concept. For this reason, the currency will become public through the traditional initial public offering (IPO). Chia is not after inflating his coffers. However, the start-up wants to establish a professional relationship with investors.
For this reason, the startup already has about $ 3.4 million in initial capital from Silicon Valley investors. Perhaps it is not just the professional aspect that attracts investors to Chia. According to the startup website, the company will adopt an unusual startup model. Instead of the usual extraction process to obtain cryptocurrencies, enthusiasts will have to "cultivate" them to obtain the Chia coin.
What is different is that traditional cryptocurrencies are based on PoW, which consumes a lot of energy. In the case of Chia coins, users will rely on Proof-of-Space (PoS) to get the coins. Basically, this involves the use of more storage space that users all over the world have.
INFORMATION ON RISK
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions they make based on this information. It is your responsibility to review, analyze and verify any content / information before relying on it. Trading is a highly risky business. Consult your financial advisor before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disavowal.
Join our Telegram Group to stay updated with Crypto News
Post Views: 24