What is the value of Chia, the rising star in storage mining?

According to official news, Chia Network is expected to enable transfer transactions at 10 a.m. on May 3rd, US time (May 4th, Beijing time).

According to official news, the latest version of Chia Network has updated the transaction function, but it is not yet enabled. It is expected to enable transfer transactions at 10 am on May 3rd, US time (May 4th, Beijing time). Although Chia (XCH) tokens have not been launched, many small exchanges have launched chia futures, with varying prices; the current over-the-counter price of Chia is around US$150-250.

According to Blocklike, in late March, the cost of a single TiB of a Chia mining machine's hard disk was generally around 160-170 yuan, and the price of 1 TiB of a Chia mining machine in the early days was mostly around 200 yuan. Now, due to the general increase in the prices of computing machines, storage machines, and hard disks, the price of 1 TiB of many Chia mining machines has been pushed up to around 600-700 yuan.

What is Chia?

Although Chia's mining mechanism is similar to Filecoin, it also uses space proof + time proof and requires the use of hard disk as a hardware device to participate in mining, but it is not actually a project in the decentralized storage track.

Chia is a public chain project dedicated to realizing peer-to-peer payment, cross-border transfer and other payment-related projects. This is similar to the original intention of BTC's peer-to-peer payment system. Obviously, payment tokens such as BCH and XRP are Chia's competitors. Currently, the Chia mainnet has been launched on March 19 and is currently in the pre-mining stage. It is expected that the transfer transaction function will be opened on May 4, Beijing time. There is currently no upper limit on the total issuance of Chia (XCH) tokens, and a block reward halving measure similar to Bitcoin is adopted.

Why is Chia so popular?

First, the popularity of FIL mining has brought the hard disk mining model into everyone's attention, and Chia's mining mechanism is similar to Filecoin, so many companies and investors are very interested in Chia.

The second reason is that many investors and miners in the circle have missed the best dividends of FIL mining before, and the emergence of Chia, a new storage mining star, has made those who missed the FIL mining dividends start to move.

The third reason is that the leader of Chia Network (Bram Cohen) is the founder of the well-known cryptocurrency project BitTorrent. Before BitTorrent was acquired by Justin Sun, Bram Cohen had already started to lay out Chia. Of course, in addition to Bram Cohen, the team also brings together a large number of glittering figures, which can be regarded as a very top project team in the field of cryptocurrency.

Fourth, it is favored by many well-known investment institutions. In addition to the team, Chia has also received early investment from many well-known institutions, such as A16Z, Galaxy Digital, Breyer Capital, IDEO CoLab, etc. The top team plus the endorsement of well-known investment institutions made Chia popular from all sides as soon as it went online.

Chia's investment value

I believe that many investors will be curious about which one of FIL and Chia has higher investment value; but if you think about it carefully, the two belong to different tracks. The former is engaged in decentralized storage and is a project in the underlying foundation of blockchain, while the latter is in the payment field and is committed to becoming a global universal digital currency. The two are not comparable.

At present, the computing power + data + storage behind FIL has been recognized by senior practitioners inside and outside the industry. As a basic blockchain project, its value is self-evident. But looking at Chia again, considering the current situation, its future development still needs time to test.