The BitTorrent inventor now creates another way to make blockchain more eco-friendly.
BitTorrent’s Bram Cohen proposes using proof of time and storage, instead of relying on the electricity-wasteful proof of work model for verifying transactions.
Lately, the world’s famous cryptocurrency Bitcoin has been creating a lot of buzz as more and more people invest in the cryptocurrency.
However, behind all this success and milestone is a blockchain that’s sustained by miners who, as it turns out, actually use massive amounts of electricity for each transaction.
Behind the scenes, Bitcoin are mined using the computing power of hundreds of CPUs all over the world, with each one eating up electricity to continuously verify transactions within the Bitcoin blockchain.
Here comes the energy-efficient and eco-friendly solutions, in order to reach the goal is to cut out the energy used in blockchain transactions.
The new startup company established by Cohens, called Chia, which he describes in an interview with TechCrunch as “a better bitcoin.”
Instead of depending on what’s called a “proof of work” to verify its blockchain, Chia will launch a cryptocurrency that is based on proof of time and storage.
It just means that Chia will depend on already existing, unused storage space in hard drives.
According to Cohen, the proof of work model, is also prone to instability, because the few bitcoin miners with access to cheap electricity actually end up having an outsized influence.
“The idea is to make a better bitcoin, to fix the centralization problems,” Cohen told TechCrunch. In this sense, Chia becomes an even more decentralized blockchain.
Chia, instead of using proof of work, solves security concerns in proof of space by supplementing its blockchain verification with proofs of time. In short, in the model that Cohen proposes in Chia — which they refer to as farming instead of mining — the same level of security can be achieved while using less electricity.