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Could Chia BitTorrent Creator's cryptocurrency overcome Bitcoin?
There are thousands of virtual currencies available on the market right now, but there's one that wants to "kill" Bitcoin with a new green system.
Bram Cohen, the creator of the BitTorrent platform, could also receive attention for the creation of one of the cryptocurrencies that would question the power of Bitcoin in the market.
Cohen has created a new virtual currency named Chia which looks like a different virtual currency. It aims to solve the problem of electricity consumption that Bitcoin currently faces. To be sure, the Bitcoin network needs to process large amounts of data and equations. Miners use a lot of energy to power ASIC mining hardware to solve these calculations. This system is called Proof of Work (PoW) and consumed as much energy as Austria.
Instead, the Chia network uses a different mechanism called Proof-of-Space. Instead of using processing power, the mining process uses hard disk space.
During a conversation with Breaker Magazine, Cohen has explained:
"The idea is that you're taking advantage of this source of storage capacity, and people already have ridiculous amounts of excess space on their laptops and in other places that are not used." It's already been so long that it should reach the point where if you buy new hard drives for the purpose of farming, you will lose money. "
This would allow the network to consume much less energy than Bitcoin, thus reducing electricity consumption worldwide. At the same time, the creator of Chia cryptocurrency states that it is much safer than Bitcoin.
Cohen explained that anyone interested in attacking the network should have access to more resources than the network has. This is something complicated since the cost of buying them upfront would be huge. Furthermore, he said the costs would be higher than the cost of the ASICs needed to attack Bitcoin.
Although the new system seems safer, it has several limitations. For example, if desired, a genre-type re-mining attack can be performed. Actors who have enough resources could create a new blockchain from scratch and exchange the blockchain once it gets longer. This would allow them to take possession of the coins and cancel previous transactions.
To prevent these problems, Chia has a time-consuming consent mechanism. This would not allow bad actors to attack the network and have a profound effect on it in a short period of time. This network and virtual currency are expected to be launched in the coming months.
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