Market cap: $270 million (*as of Jan 3)
The Chia Community noticed a spectacular launch on crypto exchanges this yr, elevating hopes of being the subsequent Bitcoin however settled at simply 10% of that worth inside a month.
In an progressive strategy that avoids the energy-intensive mining employed by Bitcoin, Chia determined to make use of the accessible cupboard space on arduous disks as a substitute. This mechanism of securing its blockchain was referred to as proof-of-space-and-time (PoST), which was hailed as being eco-friendly in comparison with utilizing CPUs and GPUs.
However then we noticed an illustration of why we are able to’t have good issues, when the Chia experiment scaled up past merely utilizing present accessible cupboard space. Chia ‘farmers’ wrote ‘plots’ to mine Chia coin on a big scale by shopping for up all of the arduous drives accessible out there.
They hoped the drives would pay for themselves from future crypto income. This tripled costs of the few HDDs and SSDs nonetheless accessible, leaving them out of attain of house customers. This apply by Chia farmers even led to manufacturers reducing warranties upon SSDs — sometimes identified to have an extended life than that of HDDs.
In the long run, whereas Chia was a very good demonstration of idea, there weren’t many use cases for it, so hypothesis diminished and the worth of Chia coin fell. Nonetheless, we could but flip again and take a look at Chia in a couple of years, simply as we glance again on the early days of Bitcoin mining in the present day.