If a year ago, someone asked you if Huawei phones would be out of stock, I guess not many people would believe it. But looking at the global semiconductor chip market today, people have noticed that the chip shortage has had a huge impact on many industries. Now the same thing seems to be happening again in the hard drive market, where many people have noticed in recent weeks that hard drive prices have suddenly started to soar, doubling or tripling in just a few weeks. And it all started with a so-called “diva” encryption project – Chia.
There is no doubt about the innovation, but is Chia mining really friendly to retail investors?
How good is Chia, a crypto project? It probably starts with the ‘granddaddy’ of cryptocurrencies, Bitcoin – when Bitcoin was developed, the market did not foresee that the arithmetic power of dedicated mining hardware devices would greatly exceed the performance of ordinary computers, resulting in the hoped-for decentralized network being controlled by a handful of miners who could use chip makers and wholesale power purchases (or worse). The miners who currently control the Bitcoin network believe they still have a competitive advantage and are clearly opposed to changing the protocol – even though it is clear that it should be changed. chia has spent a decade working on a new digital currency ecosystem that could make cryptocurrencies more decentralized, secure, and easy to use.
If nothing else, Chia will be the first enterprise-grade digital currency, created by Bram Cohen, the inventor of BitTorrent and currently the world’s best network protocol engineer (BT downloads are no stranger to those who have heard of “seeds”! Chia supports a wide range of smart transactions, including: atomic exchanges, authorized payees, recoverable wallets, multi-signature wallets, and limit wallets, through a powerful, easy-to-audit, and secure new smart transaction programming language called Chialisp.
Unlike Bitcoin, which uses proof-of-work, Chia uses a time- and space-proven consensus algorithm, which means anyone can use their remaining hard drive space to verify transactions, not to mention consume a lot of power to maintain the network – instead of buying expensive mining machines like they do for Bitcoin (which are essentially disposable hardware ), Chia uses a fair, environmentally friendly and better quality blockchain to make the most of the available empty hard drive space spread across nodes around the world. Mining on Chia is more decentralized because it relies on free hard drive space; anyone with a cell phone, laptop or corporate network currently has a lot of unused extra storage space, and once you’re done mining, you can redirect your storage usage with no additional impact on disk space.
Perhaps because of Bram Cohen’s industry reputation, compliant path to market, and the project’s own hard power, Chia quickly gained investment from top Wall Street institutions such as a16z and Denver Capital, and also gained a lot of attention in a short period of time. The results were obvious, as more and more people explored Chia mining, and demand for hard drive space rose – as you can tell from the laws of the market, when demand exceeds demand, prices rise. Not only that, but with the announcement of the project’s launch of trading on May 4, Chia’s mining fever was once again pushed to a climax, causing the threshold for participation in Chia mining to become higher and higher, with the price of a 1P arithmetic mining machine on the market once reaching a sky-high price of $400,000, consequently keeping many retail investors out of Chia mining.
How to deal with the pain points of Chia mining market?
So, is there no opportunity for ordinary crypto users to participate in the face of the high cost of Chia mining? As an important part of the crypto ecology, the importance of exchanges speaks for itself, and “where the masses are in trouble”, exchanges will be present. Therefore, when cryptocurrency exchanges saw the market pain point, they quickly gave a solution – cloud computing power mining.
Take Whale Exchange for example, the veteran cryptocurrency exchange has been operating in the cloud arithmetic industry for many years and is already a leader in this field. As early as 2019, Whale Exchange went live with the Bitcoin Cloud Arithmetic Mining project, and they not only help users screen high-quality partner mining cooperation, design friendly yet attractive products, and set professional and transparent industry standards, but also establish disaster recovery solutions to deal with various risks and provide quality services throughout the investment process. It is on the basis of these core market competencies that the Chia cloud arithmetic mining product launched by Whale Exchange soon attracted the attention of many crypto community users.
According to the official announcement made by Whale Exchange on April 20, the exchange has launched the Whale Arithmetic Chia 3-year (30 days full) product, a green bitcoin-like public chain, 30U/T/year, with a 3-year term, the longest service period, more digging and more earning, lightning delivery, and arithmetic effective on T+20. However, after seeing the usage feedback, WhaleExchange took only one week to optimize the supply chain to allow more users to dig more Chia early, shortening the Chia arithmetic P-disk time from 30 days to 20 days, and all purchased users can automatically upgrade to get this benefit and share the real Chia mining dividend together.
On May 4, Whale Exchange officially announced the launch of CHIA and the simultaneous opening of XCH/USDT trading pairs (Note: As one of the world’s largest decentralized exchanges, Whale Exchange’s CHIA trading supports 0 commission and second withdrawals). As Chia continues to go live on mainstream exchanges, the market has become more and more enthusiastic about Chia. According to the latest data, the network-wide price of Chia (XCH) has reached $1,024.79 at the time of this writing, with a 7-day increase of 52.9% (as shown in the chart below, data from Coingecko, data extraction time May 12, 2021), and the total network-wide computing power is over 3500 P.
Based on the current coin price and arithmetic power, the cost of Chia arithmetic power is about 93 U/T for the three-year period, and the payback days are about 48.43 days net of fees. Not only that, Whale Exchange has also launched Chia encapsulated arithmetic and FileStar full storage arithmetic activities, and up to now, many users have received very significant referral rewards. Take CHIA arithmetic as an example, the user with the most arithmetic rewards has recommended 16 people to buy 1042T arithmetic, which can get 156.3T arithmetic rewards, equivalent to 14,535.9U, an amazing performance. Currently, the referral bonus activities for Chia and FileStar arithmetic are still ongoing, and many mining users have come to the company for the opportunity to participate in the activities.
It is worth noting that the term of service of Whale Exchange’s arithmetic power is up to three years, while most other exchanges in the market provide one year or 540 days of service. From this perspective, Whale Exchange is more able to make users feel at ease in mining, and also make itself gain good reputation in the community and even in the industry.
Cloud arithmetic mining is a relatively mature product in the cryptocurrency industry, and has gained a lot of recognition from users due to its security and transparency. Cryptocurrency exchanges such as the Whale Exchange have effectively applied cloud arithmetic mining to Chia, which has better alleviated the market pain points, and CHIA (XCH) still has some potential in terms of token price trends and future hard drive market development. Of course, Chia introduces a new concept of hard drive mining, so you need to understand it in depth and gain enough knowledge before participating.
However, it is better to retreat than to envy the fish in the abyss. The opportunity advantage is all around, but the same opportunity can have very different results for different people. If you missed Bitcoin in 2013, DeFi in 2019 and NFT in 2020, you probably shouldn’t miss Chia in 2021.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/whale-exchange-breaks-out-of-the-chia-mining-puzzle/
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