Decentralizing Cryptocurrency Mining
Due to the high cost of mining, average people are no longer able to partake in the the digital task. One of the major problems facing bitcoin today is the excessive power and hardware requirements for mining. As a result, the decentralized stature of cryptocurrencies are under examinations as large business are possessing larger influence. About 80% of all bitcoin mining is conducted in large factories in China, giving them a monopoly in the space. As the world is trying to become more green and conscious of their ecological footprint it is appalling how much electricity is used to mine a single bitcoin. Reports state, a single bitcoin transaction uses the same amount of electricity as the average american household uses in a week. In the current green era where we are trying to reduce resource consumption, something must be changed.
BitTorrent founder, Bram Cohen, believes he can decentralize mining by reducing the price and power needed to perform a bitcoin transaction. Cohen claims the secret recipe to this solution lies in his new token, Chia Network. The new token uses a unique method when mining coins.
Currently the method used is a ‘proof of work’ concept requiring individuals to use elaborate and power hungry machines. Chia network uses a completely different method referred to as ‘proof of space’. Cohen added: “We’re calling it farming instead of mining because it’s greener. You don’t need lots of power in order to farm with proof of space.” Chia Network is planning to launch in 2018 but with no detailed time frame. By raising a new crop of digital farmers, Bra Cohen is the lead pioneer, in decentralizing the industry.