Chia cryptocurrency: Eco-friendly Bitcoin rival flops on launch

The currency is also designed to address one of the main criticisms of Bitcoin, which has to do with the environmental toll of mining.

Bitcoin, for example, uses a proof-of-work consensus mechanism, which pits miners against one another and is extremely energy-intensive.

The architects of the Chia network opted for a different system entirely, called proof of space, which relies on storage capacity instead of computing power.

“When the blockchain broadcasts a challenge for the next block, farmers can scan their plots to see if they have the hash that is closest to the challenge.

In the runup to launch, for example, Chia hype led to shortages of high-capacity storage in a number of regions, pushing prices through the roof.

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