Chia, a cryptocurrency intended to be a “green” alternative to bitcoin has instead caused a global shortage of hard discs. Gene Hoffman, the president of Chia Network, the company behind the currency, admits that “we’ve kind of destroyed the short-term supply chain”, but he denies it will become an environmental drain.
Bitcoin requires so-called miners to do vast amounts of useless calculations to maintain the network, a system that is known as proof of work. The most recent studies show that bitcoin may currently consume 0.53 per cent of the world’s electricity supply. Chia instead uses a proof-of-space approach that ditches these calculations and relies on empty hard disc space. The more space a miner devotes to the task, the higher their probability of receiving new coins.
In theory, this would consume less energy, but there has been a surge in demand for hard discs since the currency launched earlier this year. Around 12 million terabytes of hard disc space is currently being used to mine Chia, having risen on an exponential curve since its launch in March. When New Scientist first reported on Chia just two weeks ago, that figure was only at 3 million terabytes.
These discs still require energy to produce and run, and there are reports that the constant reading and writing involved in mining can wear them out in weeks, rendering them useless. Hoffman says this problem only affects the cheapest discs