The inventor of BitTorrent, Bram Cohen, announced plans to launch his own cryptocurrency called Chia at his new company – Chia Network. The new Chia coin will be based on the blockchain technology, but unlike the most popular digital currency bitcoin, it won’t require proof of work. Instead, it will only require proof of time and storage. At the heart of Cohen’s idea is the desire to make a better version of bitcoin.
“The idea is to make a better bitcoin, to fix the centralization problems,” Cohen claimed.
The main issue with bitcoin is that those with access to cheaper electricity can mine much more bitcoin, according to Cohen. Another aspect which he hopes to improve is the ecological impact of the currency. Namely, the Chia coin will rely on unused storage space on the hard drive in order to verify its blockchain in order to avoid extra costs. The proof of space will be combined with proof of time, as an additional security measure.
Cohen describes the project as “ambitious” and notes it will be a challenge to get people to switch from bitcoin to his new digital currency. He hopes to “do some smarter things about its legal status and do a bunch of technical fixes that you can do when starting from scratch.”
The BitTorrent creator plans to do some sales of Chia in the second quarter of 2018, and launch the new cryptocurrency before the end of 2018. However, Cohen claims he is aware that is a “stretch goal.”