Chia, a cryptocurrency created in 2018 that uses storage for its consensus, is eyeing a public offering this year, according to statements by its COO, Gene Hoffman.
Chia, a cryptocurrency founded two years ago but which recently launched its mainnet, is struggling to launch an initial public offering (IPO) later this year, as shown by statements of the company that supports it. Chia Network Inc, founded by the creator of Bittorrent, Bram Cohen, recently received a round of financing of more than $ 60 million, which gave the cryptocurrency a valuation of $ 500 million.
The companies that led the financing round were Richmond Global Ventures and the well-known Andreessen Horowitz, but other companies were also involved. Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab + Currency and DHVC also participated.
Gene Hoffman, the company’s COO, informed the public that these resources will be used to continue hiring labor and foster the promotion of cryptocurrency as an alternative to other major currencies in space, such as bitcoin.
“Our goal has always been to go public relatively quickly, as this will significantly clarify our regulatory environment and allow customers to use currency to protect public market volatility, which is different from other currencies.”
The last round of investments made them confident about what they could achieve with an IPO. The recent narrative of environmental concern that is now seeking greener alternatives to bitcoin’s PoW may help them in the process.
Is Chia’s use of hard drives and SSDs really environmentally friendly?
But, what is Chia really and how does it compare to the Bitcoin network? Chia is a cryptocurrency that uses hard disk space as a central element of its consensus algorithm. Chia miners use this space to plot cryptographic responses that will be challenged by the network. If a block challenge has the same content as a plot on a miner’s hard drive, the miner wins the reward. This is known as “Proof of Time and Space”.
Compared to the Bitcoin network, this approach is more environmentally friendly than the PoW consensus, because ordinary hard drives and computers use less energy than ASIC miners to confirm transactions. However, Chia still has its not-so-green side. There are reports that show that the hard drives used by Chia miners generally malfunction faster than the drives used normally, due to the intensive use they experience. This generates more electronic waste that needs to be recycled or disposed of, also impacting the environment.
In any case, Chia proponents believe that the asset has a real chance of becoming one of the most important cryptocurrencies of the future. The success of Bram Cohen and Bittorent helped to increase optimism about Chia.