A new cryptocurrency called Chia could solve some of mining's biggest problems and create new ones in the process

Founded by BitTorrent creator Bram Cohen, the Chia Network uses storage space to mine coins rather than relying on energy-hungry mining rigs with graphics cards and ASIC miners It works on the principle of using storage space to mine coins rather than relying on energy-consuming mining rigs with graphics cards and ASIC miners However, this is not good news for hard drives and SSDs [Given that it is estimated that bitcoin mining alone consumes more than Argentina's electricity annually, this may pave the way for a newer, greener era of crypto mining

However, while Chia appears to offer many advantages, there is also concern that it may create a new problem of hard drive and SSD shortages, throwing PC builders and hardware enthusiasts out of the frying pan into the fire, so to speak

Bitcoin and Dogecoin use raw computing power to verify transactions in a system known as Proof of Work These calculations are performed by miners, who are rewarded for leveraging the power of GPUs and other hardware to verify and secure the network in the process In contrast, the Chia Network runs on Proof of Space and Time

Sexier names aside, the latter model relies on the use of storage space (rather than processing power) to secure the network, and users who provide storage to Chia are rewarded This "pharming" process differs from mining in that no special equipment is required to participate However, the more space available, the greater the likelihood of receiving a reward

There is a problem: Even though Chia is not yet traded, Chinese prospective farmers are already buying up hard drives and SSDs in large quantities, and prices are expected to soar to reflect demand

In Hong Kong, for example, hard drive and SSD prices are expected to jump between HK$200 and HK$600 (about $26 to $77) High-end 4-18 TB drives are already selling out, and manufacturers are beginning to face the same dilemma that is plaguing Nvidia and AMD in the GPU world

While there is no guarantee that Chia will be successful enough to make the list of top cryptocurrency performers by market cap, it is clear that the premise behind its network and the way it offers rewards is attractive enough to cause a stir in the crypto community It will be interesting to see how it develops in the future