Cryptocurrency News

Chia raised $ 61 million for ‘eco-friendly’ crypto despite critics



Blockchain startup “Chia Network” has raised $ 61 million in a funding round that includes investment from top venture capital firms Andreessen Horowitz And Richmond Global Ventures.

According to an anonymous source, the decentralized smart contract platform was valued at about $ 500 million in funding rounds Bloomberg. The funding round was also backed by the CEO and Co-founder of angellist Naval Ravikant, Breyer Capital, and True Ventures.

Chia’s president and CFO, Gene Hoffman, told Bloomberg that the firm expects to go public this year through an initial public offering, or IPO:

Blockchain startup “Chia Network” has raised $ 61 million in a funding round that includes investment from top venture capital firms Andreessen Horowitz And Richmond Global Ventures.

“Our goal has always been to go public relatively quickly because it will clearly articulate our regulatory environment and allow customers to use the currency to prevent public market volatility, which is different from other coins.”

Chia Network was founded in 2017 by Creator of BitTorrent, Bram Cohen, And in 2018 raised more than $ 3.3 million in a seed round led by Ravikant and Andreessen Horowitz. The firm describes its Chia Token (XCH) as “green money for the digital world”.

The Chia Network’s major value proposition is its unique consensus mechanism, “Proof of Space and Time.” The consensus method provides far more energy efficiency than proof-of-work mining, seeking to identify unused computing power on verifiers’ hard drives.

To create or “farm” XCH, the user Install Chia’s software that writes cryptographic data known as “plots” on their hard drives. Blockchain broadcasts a problem approximately every 18 seconds for each new block – with the probability of winning a block by one person determined by the availability of unused computational resources provided by farmers.

Despite the company offering XCH as a green alternative to bitcoin and other cryptocurrencies, some have Questioned the network’s environmentally friendly claims.

Title in article May 23 Chia is a new way of wasting resources for cryptocurrencies, David Gerrard, author of 50 foot blockchain attack, Slated Chia for being “heavy on electricity” and for requiring “multiple CPU threads to run consistently close to 100 percent” for farming.

Gerrard stressed that Chia’s plotting process typically uses a computer’s solid-state drive, or SSD, and can burn an SSD in less than six weeks. In comparison, SSDs typically have a lifespan lasting more than a decade, subject to regular use.

“Instead of carbon dioxide, Chia produces massive amounts of e-waste — rare metals, assembled into expensive computing components, which turn into toxic near-unrecoverable landfills within weeks.”

Gerrard predicts Chia computing will increase landfill, with Fortune already weighing in Reporting There is a shortage of hard drives in the entire South-East Asia region in anticipation of the launch of XCH.

“High capacity demand and pricing in recent weeks [hard disk drives] Have seen a physical step higher […] And enterprise [SSD] Prices have also risen higher, ”said an analyst at Bank of America.

“[The] The consistency of this trajectory of Chia’s popularity remains unclear, ”he said.