https://www.tomsguide.com/news/what-is-chia-cryptocurrency-and-why-is-it-bad-news-for-hard-drives Skip to main content (*) ( ) Created with Sketch. [] Tom's Guide [ ] Search [ ] Subscribe RSS UK US Australia Canada Please deactivate your ad blocker in order to see our subscription offer * * Best Picks * News * Reviews * Phones * TVs * Security * Personal Finance * More + Antivirus + Audio + Cameras + Gaming + Smart Home + Software + Streaming + Best VPN + Wearables + Web hosting + What To Watch + How To + Cloud Storage + Cloud Backup + All Topics Forums Trending * iPhone 13 * PS5 restock * Xbox Series X restock * iOS 14.5 * Amazon Prime Day * VPN Tom's Guide is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more 1. Home 2. News 3. Computers What is Chia cryptocurrency -- and why is it bad news for hard drives? By Esat Dedezade 20 April 2021 Chia is a new cryptocurrency that avoids some of Bitcoin's problems, but it's not without its own drawbacks * * * * * * Comments (0) Chia cryptocurrency (Image credit: Marc Pezin/Unsplash) A new cryptocurrency called Chia could eliminate some of mining's biggest problems, while creating a new one in the process. The Chia Network, which was founded by BitTorrent creator Bram Cohen, runs on the principle of using storage space to mine coins, rather than relying on energy-hungry mining rigs powered by graphics cards and ASIC miners. But there's a catch -- and it's not good news for hard drives and SSDs. * Robinhood app -- how it works and everything you need to know * What is Dogecoin? Price, news and what you need to know * Plus: Bitcoin value just plummeted -- what you need to know Considering that Bitcoin mining alone is estimated to consume more electricity than Argentina annually, this could pave the way for a newer, more environmentally friendly era of cryptomining -- one in which far less electricity is guzzled up, and where gamers no longer have to deal with GPU stock shortages and hopeless fights against scalping bots. However, while Chia appears to offer plenty of benefits, there are concerns that it could be creating a new problem in the form of hard drive and SSD shortages, flicking PC builders and hardware enthusiasts out of the frying pan and into the fire, so to speak. The likes of Bitcoin and Dogecoin use raw computational power to confirm transactions -- a system known as a Proof of Work. These calculations are carried out by miners, who utilise the power of their GPUs and other hardware to earn rewards for verifying and securing the network in the process. In contrast, the Chia Network runs on Proof of Space and Time. Sexier name aside, the latter's model relies on using storage space (rather than processing power) to secure the network, rewarding users who give up their storage to Chia. This "farming" process differs from mining in the sense that you don't need specialised equipment to participate; anything from a laptop to a smartphone can be used to farm Chia. The more free space you have, however, the more likely you'll be rewarded. Enter the problem. Despite the fact that Chia isn't being traded yet, prospective farmers in China are already snapping up hard drives and SSDs in bulk, with prices expected to shoot up to reflect the demand. In Hong Kong, hard drive and SSD prices are, for example, predicted to jump by anywhere between 200 HKD and 600 HKD (around $26 to $77). High end 4-18TB drives are already selling out, and manufacturers are beginning to face the same dilemma that's plaguing Nvidia and AMD in the GPU world -- namely, wrestling with restricting sales while keeping up with enough production to feed the tech-hungry masses. While there's no guarantee that Chia will be successful, the premise behind its network and the way it offers rewards is clearly enticing enough to have caused a stir in the crypto community. We'll be keeping a close eye out for new developments as they unfold. * More: Best personal finance apps: See our top picks Today's best Samsung Galaxy Buds Pro deals Reduced Price Samsung - Geek Squad... Best Buy $199.99 $119.99 View Reduced Price SAMSUNG Galaxy Buds Pro,... Amazon Prime $199.99 $179.99 View Reduced Price SAMSUNG Galaxy Buds Pro -... Walmart $199.99 $179.99 View Reduced Price Galaxy Buds Pro, Phantom... Samsung $199.99 $179.99 View Show More Deals We check over 130 million products every day for the best prices [impression] Topics Computers See all comments (0) [ ] No comments yet Comment from the forums Be In the Know Get instant access to breaking news, the hottest reviews, great deals and helpful tips. [ ] [ ] [ ] Contact me with news and offers from other Future brands [ ] Receive email from us on behalf of our trusted partners or sponsors [Sign me up] Thank you for signing up to Tom's Guide. You will receive a verification email shortly. There was a problem. Please refresh the page and try again. No spam, we promise. You can unsubscribe at any time and we'll never share your details without your permission. MOST READMOST SHARED 1. 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