The recent craze of the Chia cryptocurrency got me excited. Mostly because it uses storage as the determinant for the Proof-of-Work consensus algorithm in a blockchain network. Yes, I am always about storage. 😉
I am not a Bitcoin miner nor am I a Chia coin farmer, and my knowledge and experience in both are very shallow. But I recently became interested in the 2 main activities of Chia – plotting and farming, because they both involved storage. I am writing this blog to find out more and document about my learning experience.
[ NB: This blog does not help you make money. It is just informational from a storage technology perspective. ]
Proof of Space and Time
Bitcoin is based on Proof-of-Work (PoW). In a nutshell, there is a complex mathematical puzzle to be solved. Bitcoin miners compete to solve this puzzle and the process uses high computational processing to solve it. Once solved, the miners are rewarded for their work.
Newer entrants like Filecoin and Chia coin (XCH) use an alternate method which is Proof-of-Space (PoS) to validate and verify the transactions. Instead of miners, Chia coin farmers have to prove to have a legitimate amount of disk and/or memory space to solve a mathematical puzzle, conceptually similar to the one in Bitcoin mining. In the beginning, this was great for folks who have unused disk space that can be “rented” out to store the crypto stuff (Note: I am not familiar with the terminology yet, and I did not want to use the word “crypto tokens” incorrectly). Storj was one of the early vendors that I remember in this space touting this method but I have not followed them for a while. Their business model might have changed.