Chia Network recently entered the cryptocurrency scene and has quickly piqued the interest of many miners and investors. There are several reasons for this: First, the Chia blockchain operates using a novel proof-of-space-and-time (PoST) protocol, which means that proof of the space used and time spent on the task is required to farm the cryptocurrency.
Second, according to the creators of the currency, Chia (XCH) is an environmentally friendly coin and is not mined, rather it’s farmed, with the protocol needing low energy to generate new coins.
Gene Hoffman, president and chief operating officer of Chia Network, told Cointelegraph that the project’s creator, Bram Cohen, wanted to bring environmental friendliness to the world of cryptocurrencies.
In the case of Chia, an unused hard disc drive (HDD) or a solid-state drive (SSD) storage space can be replaced with hashing power. Krzysztof Pietrzak, who also worked on the PoST protocol, said the original model behind Chia was flawed. Hoffman added, “That started off a back-and-forth of Bram coming up with potential solutions and Krzysztof proving them wrong until Bram proposed one that — as Krzysztof attempted to mathematically prove wrong — proved right.”
What is Chia Network?
The main selling point of Chia farming is that participants don’t need to use powerful GPUs and processors, which are needed to mine Bitcoin (BTC). Chia can be farmed with an HDD or an SSD, which is an attractive proposition for those unable to afford the latest, greatest video cards. Hoffman explained:
“It was totally designed from the ground up to be as or more secure than proof of work and far more decentralized while using 1000 to 10,000 times less power per unit of security.”
To farm Chia, you can start with just a personal computer or laptop of any kind. All you need is a processor with a clock speed of 1.5 GHz, 2 GB of RAM, and a 1 TB SSD or HDD.
Next, users need to download the “Chia Blockchain” client from the project’s official website or directly from GitHub. Then you create a wallet and save a private key, after which you can start the farming process by clicking the “Create Plot” button. Farming one block gives a reward of 64 Chia tokens. And the speed of farming depends on the disk storage capacity used.
It is worth noting that for now, only individual users can farm hia. Each individual farmer creates blocks — i.e., there is no need to join a pool to receive coins. According to the developers, this ensures that Chia Network is decentralized. However, the project team is currently working on creating an official pool protocol that will be released soon. Regarding the upcoming release, Hoffman stated:
“It is impossible for a farmer to cheat. Pools can only cheat by not paying out the agreed amount and a farmer can leave a pool in thirty minutes if they think they’re being cheated. Further, unlike nearly every other cryptocurrency with pooling, the pools do not make the blocks — each individual farmer makes the blocks. That means it remains far more decentralized, on top of the Chia blockchain being the largest ever blockchain by public node count.”
If you don’t have hardware and just want to buy Chia, this can be done through several crypto exchanges. You should keep in mind that in order to buy Chia, you first need to purchase a stablecoin, such as Tether (USDT), or Bitcoin and then exchange it for Chia.
How to build a Chia farm
Now, the main question is how to create a Chia farm and how to choose the best components for a rig to maximize profitability. Thankfully, the process is fairly simple and resembles building a specialized home computer.
Any processor with four cores — like Intel’s Core i3, Core i5 or Core i7, or their AMD equivalents – are suitable for mining Chia. A good choice would be the Intel Core i5-11400 or Core i5-10400, which can be purchased for around $150 to $170. For even better productivity, it is advised to choose…