The cryptocurrency sector is populating with enthusiasts on a daily basis. This makes the mining process more expensive as the energy requirement increases. However, the founder of BitTorrent is building Chia, which will be a proof-of-space (PoS) cryptocurrency unlike Bitcoin’s proof-of-work (PoW). According to the creator, this will be a cryptocurrency better than Bitcoin (BTC).
According to a report by WIRED, Bram Cohen founded Chia as an alternative to Bitcoin. Notably, Cohen made a controversial reputation for himself with his aim to “democratize” the internet. From facing thousands of lawsuits from content creators, now he wants to sanitize the cryptocurrency space.
Chia Better than Bitcoin as It Transverses Two Industries
The WIRED report notes that Cohen wants to create a crypto-coin that is acceptable to the industry. However, the coin will not be symbolic of what cryptocurrencies are today.
The Chia Network launched in 2017 after Cohen left BitTorrent. In fact, BitTorrent is currently under new management after acquisition by TRON. Particularly, the coin will try to balance between the traditional financial institutions and the blockchain network. According to Cohen, who is Chairman 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 focus here is to change the relationship between the blockchain industry and traditional financial industry.
Per Cohen, Chia will not focus on the initial supply of digital coins. He notes that this is one of the reasons that initial coin offerings (ICOs) are unattractive. Also, many ICOs turned out to be scams which drove more people away from the concept. For this reason, the coin will go public through the traditional initial public offering (IPO). Chia is not after inflating its coffers. However, the start-up wants to establish a professional relationship with investors.
For this reason, the startup already has around $3.4M USD in seed capital from Silicon Valley investors. Perhaps it is not just the professional look that attracts investors to Chia. According to the startup’s website, the business will adopt an unusual startup model. Instead of the usual mining process to obtain cryptocurrencies, enthusiasts will have to “farm” them to obtain the Chia coin.
What is different is that traditional cryptocurrencies rely on PoW, which consumes a lot of energy. In the case of Chia coins, users will rely on Proof-of-Space (PoS) in order to obtain the coins. Basically, this entails using more storage space that users the world-over have.
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