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Technical details and the ROI of Chia Network Farming

Author: LB 2021-05-05 335

The largest digital exchanges have implemented the necessary functions to support the trading of a novel crypto currency called Chia Network. Transaction validation in the crypto world is generally performed with PoS or PoW, but this new project relies on a greener solution, known as proof-of-spacetime. This validation method requires a significant amount of disk space and instead of running computation power hungry mathematical algorithms, Chia Networks craves for HDD space. As a result, HDD and SSD prices in China are soaring and we’re going to witness something very similar both in the western world as the adoption of this new project advances. Let’s see a few technical details to find out how to mine Chia Network!


On May 4, Gate.io, MXC.com and Bibox started to list Chia Network on their platforms with the abbreviation XCH and the coin’s market price has also been published to coinmarketcap.com. It’s price fell heavily right after the official release and it settled on a $660 level following it’s tragic descent.


Technical details


Initially, 21.000.000 coins were issued and early adopters might have poured some of the coins into the market causing a severe devalvation. There is going to be an additional 3.363.840 Chia Network coins paid out to Chia farmers. Farming is a fairly new terminology, not yet seen in the world of cryptos and it refers to the traditional mining process, albeit on a new basis. The concept of difficulty has been adopted from former crypto solutions and the difficulty parameter increases as more miners (farmers?) join the system. This will result in an increased farming difficulty, which leads to declining farming profits.


How to mine Chia Network?


Chia Farming requires a wallet application and this can be downloaded from the official Chia site. The wallet has to be in a synchronized state before the user can start deploying his plots. These plots require a massive amount of free space and Chia enthusiasts in China have already started buying up the gigantic SSD drives from suning.com and taobao.


How many Chia Network coins are there for this year?


The initial Chia supply was 21.000.000 coins and an additional 3.363.840 Chia coins will be paid out to farmers in the upcoming year. It’s supply, just as the supply of bitcoin increases gradually, but this rate of growth decreases due to the halving events. There are going to be over 3.000.000 Chia coins issued in the first three cycles.


Hardware requirements


Disk space is the number one requirement for Chia Farming. The number of Chia coins you can harvest is proportional to the amount of free space you have allocated for your Chia plots. 1~16TB SSD drives are extremely popular these days, because they can serve as an abode for these Chia plots.


How to estimate the ROI of Chia Mining?


According to a Chinese Youtuber (老杨带你来谈钱), in April 18, 2021 you need to have approximately 50TB of available disk space to mine 1 Chia Network coin per day. If you buy a Wester Digital WD81EJRX HD on suning.com for 2000 CNY you have 8TB of space, so you need 7 of these. This was 14.000 CNY or a little bit over $2100 in April for the disks. According to his calculation, with an expected market price of 40USD the initially invested $2100 can be recovered in a few months.


How much is the hardware for Chia Mining?


HDD and SSD prices are constantly increasing in China. 1 month ago a 8TB HD on suning.com was 1279 CNY or $200 and now it costs 2599 CNY or roughly $400. With the current farming difficulty, farmers are able to harvest almost 1 XCH per month with 8TB of space so the ROI is much higher, compared to one month ago. You can calculate the current ROI with the official Chia Network calculator: https://chiacalculator.com/.


Chia plots require free space, high performance CPUs, massive RAM space and powerful motherboards. Oddly enough, the farming application is seemingly unable to fill up the entire drive so farmers end up with unused disk spaces and many of them have no idea on how to utilize this surplus.


Have fun with Chia Farming! Reach out on Whatsapp (+36 30 8316972) if you want to know more on cryptos.


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