Bitcoin-transaction spends as much electricity as it takes to keep the American home for a week. The legendary encoder Bram Cohen, in an effort to fix this, will launch a financial startup with a cryptocurrency that can compete with Bitcoin. And given that he invented the ubiquitous BitTorrent file transfer protocol, this statement is really serious.
Cohen has just started a new project called Chia Network, which will launch a cryptocurrency based on evidence of time and memory. In fact, Chia will use a cheap and wide unused space for storage on hard disks to verify its blockchain.
"The idea is to make the best bitcoin and solve the problems of centralization," Cohen said. The two main problems that he sees in bitcoin are the environmental impact and instability that occurs in a few bitcoin-miners with the cheapest access to electricity that has a negative impact. Chia plans to solve both problems.
Bitcoin uses proof of work to check the blockchain. After all, it is too difficult to make a false blockchain, because it will not be able to demonstrate as much work as real one. But over time, this gave a huge advantage and an incentive for bitcoin mining to those who work with cheap electricity. Chia instead relies on evidence of space in the file store, which people often already have and can use at no additional cost. He combines this with evidence of time that disarms a wide range of attacks, to which space evidence is allowed.
Chia plans to do smarter things for legal status and make a bunch of technical fixes that can be done only if you start from scratch. It is too early to guess how all this will develop, but at least somebody tries to eliminate the ecological impact of the crypto currency, and not just complains about it. But such a startup idea already now attracts attention and has every chance of life.
As previously reported, Forbes journalists named the amount of lost cryptocurrencies that will no longer return to the market.