December 3, 2022

COSFONE

Networking, PBX, IT, DIY Solution

Chia hard disk mining technology: Principle, Benefits and Risks

11 min read

Detailed explanation of chia hard disk mining technology, working principle, benefits and risks, is it worth participating?

Chia hard disk mining technology: principle, benefits and risks. 

Recently, chia mining is too hot, and its emergence has also brought a burst of enthusiasm to the storage market. The sales of large-capacity SSDs have overturned and the hard drives have been out of stock.

Today, let’s understand what CHIA is, how it works, benefits, hard disk mining, etc. In the face of such dividends, is it worth participating in Chia mining?

Recently, chia mining is too hot, and its appearance has also brought a burst of enthusiasm to the storage market. The sales of large-capacity SSDs have overturned and the hard drives are out of stock. Today, let’s learn about what CHIA is, how it works, benefits, hard disk mining, etc.

Chia hard disk mining technology: principle, benefits and risks. 

Faced with such dividends, is Chia mining worth participating?

About Chia

  • Name: Chia
  • Abbreviation: XCH
  • Whether ICO: No
  • Whether to pre-mine: 21 million as a strategic reserve
  • Revenue per block: 64 Chia rewards every 10 minutes
  • Halving strategy: One halving in 3 years, 4 Chia every 10 minutes from the 13th year

The founder of CHIA.

Bram Cohen, the founder of BT (Bittorrent), CHIA was founded in August 2017 and is committed to developing an improved blockchain and intelligent trading platform. The CHIA network is being established to improve the global financial and payment systems. CHIA will be the first enterprise-level digital cash.

CHIA’s technology.

Write a new programming language Chialist, and use it to develop the Chia public chain, supplementing all the shortcomings and shortcomings of the two public chains of Btc and Eth. At the same time, Chia combines Btc’s point-to-point trading, Eth’s smart contract and Fil’s distributed storage and other functions reasonably solve the problem of enterprise-level use, and provide a broad foundation and necessary conditions for the true landing of the blockchain. The first time-space verification has reasonably realized energy saving and made Chia more environmentally friendly.

CHIA’s venture capital.

The lead investor is AngelList’s CEO Naval Ravikant, and the participating investors involve A16Z and Greylock. AngelList was established in 2010 as a docking platform for start-up companies, angel investors and job seekers who intend to seek positions in start-up companies. Naval Ravikant is the partner and CEO of AngelList; he was a partner of Epinions and vast.con, angel investor, and invested in dozens of companies, involving Twitter, Uber, Yammer, StackOverflow and Wanelo. Andreess

Application areas of CHIA.

Chia deals with enterprise-level application areas, including international payments, financial management systems, data information caching, and the actual implementation of Defi, as well as the Internet of Things technology.

In Chia’s network, there are no miners, mining, but farms, farmers, and sowing. By introducing a new consensus mechanism POS+POT (ProofofSpace+ProofofTime), with the help of cheap, redundant and relatively highly dispersed unused hard disk storage space To test its blockchain, and then create a virtual currency better than BTC.

The layout of CHIA.

Chia has joined hands with supervision from the beginning and vigorously advocated compliance management. Actively became an advocate and practitioner of supervision, paving the way for IPO listing in the future. Chia will issue its currency first, but will initially retain 100% of the token ownership and use a small IPO to cultivate a group of investors. “It is planned to distribute dividends to Chia shareholders before the public offering. Since the public offering limit is US$50 million, Chia will use an auction where investors can choose how many shares to bid to buy.


How Chia works?

Chia mining principle:

First of all, Chia will open up a P area in the hard disk, also known as the P disk process. This process can be disconnected, but it takes a very long time. This process is equivalent to capacity verification, open up wasteland and open up fields, and then grow grass in the fields in exchange for income. In this process, the faster the P disk is written, the sooner you can start farming; and the larger the P disk, the larger the field and the greater the probability of getting reward coins.

Therefore, in order to accelerate the speed of the P disk, the mine boss will grab the large-capacity solid state. Later, in order to farm income, they will go to snap up large-capacity enterprise-class mechanical hard drives. According to the current difficulty of the entire network of the Chia coin of 400PB, that is to say, the entire network is digging this coin with 40,000 hard drives, and only a 100T disk can produce blocks a day. A 1TB solid-state drive can be up to P three (1 P 300GB) at a time. Presumably, both solid-state and mechanical drives will be snapped up and their prices will rise wildly.

The P disk process mainly consumes CPU, memory (each P disk thread requires 4G of memory space by default) and hard disk temporary space (generating K = 32 seed files will probably take up 332G of temporary space), using a better-performing CPU, 16G or more Memory and solid state drive (M2.NVME protocol SSD with a total of 2T or more is recommended) can mine Chia coins faster.

Minimal analysis of Chia mining process

Since Chia exploded in mid-April, many impatient miners have already or are preparing to buy hard drives and want to do a big job. Judging from the existing community discussions, a large number of computing resources have not been fully utilized. Therefore, it is necessary to understand the key points of Chia mining and optimize it according to your own conditions in order to achieve efficient mining.

Chia’s mining process is not just a large-capacity hard drive. There are two parts indispensable: making plot files (usually referred to as p diagrams, because the official translation of plot as farmland) and mining (the official translation is farming).

For Chia, the mining step is actually a very easy act. The most important thing is capacity, not speed, and even the mining host is so low that there are almost no requirements. Officials even recommend using a Raspberry Pi with several tens of dollars and several USB Hubs to drive up to 1PB of computing power. After all, the process of mining is to wait for a string of numbers to be broadcast from the network, and then compare it with the hash value in the hard drive. The hash comparison operation is extremely fast, and there is no need to read the data counted as T into the memory for any operation.

This is indeed in line with Chia’s starting point-green. Anyone can use the idle storage capacity to join the Chia network. Mining consumes almost no additional energy. As long as the machine is turned on and connected to the network, you can enjoy 4608 lottery draws per day, which is permanent, which is wonderful.

But in fact, the process of making plots is still quite resource consuming, but it is not electricity, but SSD. High-speed and large-capacity solid state drives have become real consumables. This is due to the computer system designed by Chia. In order to achieve the goal of not only providing Proof of Space but also searching quickly enough, the process of Chia making plot is actually divided into four steps:

Data filling:

Chia miners need to consume high-speed disks, and fill in the form data automatically generated by the Chia program into the high-speed disks.

 

Data calculation:

Chia mining machine needs to use CPU and memory to perform specific calculations on the aforementioned data to obtain relevant data parameters.

File compression:

Chia miner relies on CPU and high-speed disk to compress the data into a file and pack it for backup.

File storage:

Chia miner stores the previous compressed files to the hard disk through the hard disk space.

The calculation generates 7 hash tables, and the main algorithm used is forward propagation. This step has to deal with a large number of calculations and takes up the most CPU intensive. In fact, this step has already generated all the data sufficient to support Proof of Space, but the efficiency is not good, so subsequent steps are needed.

Use the backpropagation algorithm to clean up the 7 hash tables above, remove unnecessary hash values, and sort the tables. This step also occupies more CPU intensively. The memory and cache disk occupancy peaked in 1.03 and earlier versions, but the memory occupancy began to decrease at 1.04.

Compress the results of the previous step and merge most of the tables. From this step on, the consumption of CPU has dropped to a low level, and the occupation of memory is still maintained at a high level, but the occupation of the cache disk has begun to gradually decrease.

Continue to compress the remaining tables into the final file format, and transfer the files from the cache disk to the target location. This step is the only one that performs IO operations on the target disk.

It should be pointed out that Chia’s plot file production, mining, node maintenance and other tasks are all completed by its wallet software. The software is still being improved, and iterative speed is fast. In the past few minor versions, it has been greatly improved in terms of cache occupancy and speed calculation. Some netizens on the Reddit forum recorded the resource occupancy of different versions of software (1, 2) in the process of making plots. By comparison, it can be found that version 1.04 has reduced cache usage by nearly half compared to earlier versions. It is recommended to always use the latest version of the official github.


Chia’s earnings

Take the chiafarm miner 112T as an example, each T of computing power can produce 0.04 XCH (chia tokens) per day, and each horse of computing power is equal to 1024T, which can produce 40 XCH. Suppose a miner enters the site to set up chia, and he buys about 9 chiafarm miner 112T. In the subsequent mining process, each mining machine can produce 4.48 XCH per day, and 9 units can produce a total of 40.32 XCH.

According to the current OTC price, an XCH has a price of about 20 USDT. In fact, this miner can produce 806.4 USDT per day. According to the economic model of chia mining machine mining, chia is more energy-saving and power-saving compared to traditional mining machines, and the power consumption is almost negligible.


Why can Chia coins be mined with hard drives?

In Chia, resources are not mathematical calculations, but storage space. Based on the introduction of a new consensus mechanism PoS (Proof of Space) PoT (Proof of Time), Chia relies on cheap, surplus, and unused hard disk storage space with a decentralized aspect ratio to authenticate its blockchain technology optimization algorithm.

Proof of Space (PoS) in Chia Internet is to load useless information in the hard disk to prove that you want to share the free space of your own resources, while Proof of Time (PoT) is to verify the delay time optimization algorithm (Verifiable Delay Algorithm) Used to decide which winner of a certain blockchain. The final result is that in Chia, each block chain is created with space verification as the starting point, and time verification as the end point.

   Therefore, the most basic consensus algorithm change has also caused the definition of “mining” and “mining” in Chia, and the definition of “farmer” and “farming” will replace it. “Farmers” build a blockchain based on the snapshot update (cultivation) of the idle and unused storage space available on their hard disks. The final profit is based on the percentage of the hard disk storage space in the total storage space on the Internet. The more storage space of all large farms (Chia Internet), the greater the profit.

   As the industry’s leading provider of chia miners, Chia Shensuan said: It is obvious that the weak main control chip can hardly provide enough computing power. Therefore, this also makes the “hard disk capable of mining” look a bit weird. In fact, this mining is not another mining. In the traditional definition, obtaining digital currencies such as BTC or Ether is often called “mining” because it is necessary to explain a very difficult and very complicated arithmetic problem in order to master For the question type, it is necessary to use the calculation rate of the ASIC mining machine or the discrete graphics card to carry out the calculation.


Is Chia mining worth participating?

1. The price of hard drives has skyrocketed in recent months, which will inevitably cause the cost of participating in Chia mining to increase, and it will also lead to a longer cycle of unit computing power.

2. According to the configuration of the machine, the time of the P disk ranges from 20 to 70 days.

3. The computing power of Chia Network’s entire network is still growing. There are more and more players entering the market, and the mining competition is becoming more and more fierce. This will also cause the unit computing power to return to the current cycle to become longer.

4. The current Chia mining boom is mainly dominated by short-term speculative sentiment. The long-term value of the project needs to be tested, but the XCH launch in the future may rise due to the fomo sentiment of retail investors.

5. It can double the price of the global hard disk market, and hard disk miners believe that the final market price will not be bad.

Chia still has the risk of mining.

Chia Network is committed to improving the global financial and payment system, which does not seem to be easy to do. The payment tool Chia wants to make will face tremendous regulatory pressure in the current environment. If XCH cannot find its application scenarios, it will be difficult to achieve its goals.

The potential problem is that although the produced plot file is the permanent computing power (currently the permanent expectation should be about ten years), it can be stored in a cheap mechanical hard disk, but the mechanical hard disk also has a lifespan. How to deal with the loss of hard drives caused by natural and man-made disasters has not yet entered the consideration of most miners, but as time goes by, more and more miners encounter this challenge. At present, it seems that the solution to this challenge can only be solved by constantly updating storage facilities, but this has become a non-existent or very uneconomical option under the current hard disk supply situation.

Most of the mining machines currently on sale are used for both storage and mining and P disk, but a large amount of resources will be idle after the P disk period ends. If you don’t make reasonable planning, the final result may be to buy a mining machine that contains a lot of resources such as memory, CPU, etc. The result is only used for the P disk in the first month, and a Raspberry Pi for dozens of dollars is being built for the rest of the entire life cycle. Can do the job well. As everyone gradually realizes the characteristics of Chia mining, the future P disk work will gradually be separated from the mining work, forming a more reasonable industrial collaboration.

Secondly, Chia’s economic model also has certain defects. XCH’s economic model only sees the output mechanism of XCH, but it does not describe the recovery mechanism of XCH in detail. In the later stage, if XCH is listed on the exchange, miners will keep mining, and how can the price of the currency be maintained without a recovery mechanism?

Whether Chia mining will be a brand new capital carnival or a bubble is still unclear. Opportunities and risks often coexist, so if you want to participate in it, you still need to think carefully. Whether to participate and how to participate are all questions that need to be considered.


Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.