On May 3, tokens coming from the Chia network, a smart transaction blockchain created by Bittorrent creator Bram Cohen, will begin trading and transactions will be fully enabled. Rather than using the consensus algorithm for proof-of-work, Chia will use a model called proof-of-space that relies on storage. With Chia’s transactional launch pending, the project has caused shortages due to demand for hard drives and solid-state drives (SSDs).
Chia Network is feeding shortages of high-end hard drives and SSDs
Bram Cohenthe inventor of the popular torrent application Bittorent has created a cryptocurrency that will be launched next month. Since Cohen is behind the Chia project, the early stages of the digital currency network have seen significant exposure since Chia was announced. Chia’s team believes that anyone with the project can verify transactions without relying on “one-time hardware or a high electricity bill.”
Chia released the project’s Business White paper in February 2021 and the mainnet launched on March 19. This allowed participants to access agricultural rewards, but it also led to the rise in demand for hard drives and SSDs. Transactions will be made possible on May 3rd, at which point exchanges and brokerage services may allow people to trade chia tokens. The closer to the transactional launch of the Chia network, the more demand for storage components increases.
The South China Morning Post (SCMP) explains that there is a serious shortage of SSDs and hard drives in China. Chinese hard drive and SSD manufacturers are selling out quickly and product prices have skyrocketed in secondary markets.
Chinese e-commerce markets such as JD.com and Taobao have seen high-end hard drive models sell out quickly since the launch of Chia mainnet. A customer service representative for Taobao has seen demand increase and underlines that the customers are chia miners.
“Many people have been inquiring about large hard drives for chia mining in recent days,” noted the Taobao agent. The agent also explained that Western Digital and Seagate branded equipment is experiencing shortages.
The Chinese e-commerce platforms Taobao and JD.com have sold out multiple models of enterprise-quality, large-capacity hard drives. Qin, a reseller of hard drives and SSDs in Shenzhen, explained that the prices of these equipment in secondary markets can be up to 50% to 60% higher than retail. “You can also mine chia with 4TB hard drives, because we don’t have hard drives over 4TB in stock,” emphasized Qin.
“At peak times, prices were at least 60 percent higher than normal. Prices have fallen a bit lately, but they are still about 50 percent (higher than normal) now, ”explained another salesman, Chen. The storage incentives of the Chia network have significantly increased requests for storage products, and hard drives between 4TB and 18TB are in the highest demand.
Cohen’s success with Bittorrent has fueled the Chia hype
In addition to the hype stemming from creator Bram Cohen and the speculation that has arisen within the crypto community, venture capital also appears to be interested in Cohen’s crypto. In 2018, Chia raised $ 3.4 million from Greylock, Andreessen Horowitz and Angellist’s Naval Ravikant.
Chia could also be an Ethereum competitor as it has its own onchain programming language called Chialisp. Cohen has explained that the smart trades that Chialisp enables range from colored coin technology, atomic swaps, multi-sig wallets, recoverable wallets, authorized payees, and more.
Cohen’s previous project that boosted his fame, Bittorrent, was sold to Justin Sun and is now owned and operated by the blockchain firm Tron. The file sharing operation Bittorrent was reportedly sold to Tron for $ 126 million in 2018.
What do you think of the demand for hard drives and SSDs skyrocketing during the Chia Network’s upcoming transaction launch? Let us know what you think about this topic in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Chia Documentation, Seagate,
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