Chia blamed for hard drive storage shortage
Amid the reported shortage of storage hard drive supply, Chia Network is once again in the spotlight as it is blamed for the latest market downturn.
The developer of the blockchain and smart transaction platform which also has its native chia cryptocurrency dubbed the ‘green’ alternative to bitcoin operates on a proof-of-space consensus algorithm and is, therefore, storage dependent, as opposed to the main crypto and its current rival ethereum.
While consuming relatively lower energy levels, the disks necessary for growing chia still require energy to produce and function. Some reports have indicated that this would end up rendering the hardware involved in the algorithm useless after a few weeks, leading to higher demand for storage products that hurt the supply in return.
Grow up fast
PlanetScale engineer Rick Branson said that in just 24 hours, Chia Network has grown by almost an exabyte, adding such a growth scale is difficult to understand as it would mean burning an SSD (SSD) drive from 1 terabyte every 3 seconds.
On May 26, New Scientist put the amount of space taken up in chia extraction at 12 million terabytes of disk space. Before the launch of Chia Network, that figure was only 3 million terabytes. It has since grown exponentially at an impressive and alarming rate.
Increased demand and prices
The growing demand for SSDs is believed to be the cause of the item’s price spike. But Chia Network President Gene Hoffman argued that in the future, manufacturers will increase production to meet growing demand. This will then lead to lower costs of SSDs and hard drives.
Meanwhile, at the time of writing, chia is ranked 119e in terms of market cap and is trading at $ 779. It is down 22% for the past week and has lost 53% from its all-time high of $ 1,645 reached less than two weeks ago.
Image courtesy of Cointelegraph news/Youtube