Amazon AWS China published a Campaign page that claims in as little as 5 minutes users can deploy a cloud-based storage system to mine or “farm” the native cryptocurrency on the Chia network, XCH.
The Chia Project is a unique platform that allows you to farm cryptocurrency for free. All of the cloud services can be accessed with just one click, and after creating your plot, all you have to do is wait as it generates coins in real-time! Amazon AWS has a number of helpful tutorials for using the cloud services that teach how to create a wallet, create plots, and begin farming.
We have come to understand the service is specifically targeting Chinese users as they've only created a campaign page in simplified Chinese and It is clear that Chinese investors have become increasingly interested.
The framework Chia is built on is designed to use hard drives rather than the energy-intensive proof of work model used by Bitcoin. This method is called proof-of-space and they are claiming to be an eco-friendly cryptocurrency. They are creating a decentralized storage network that will allow people more control over their data and what is shared with other parties.
The mining industry is entering a new era of bigger and better. The storage capacity from the network has grown to one exabyte, equivalent to 1 million units of hard drives that are storing 1 TB each! Where this is exciting stuff for the mining industry, it doesn’t come without struggle for a different industry.
The Covid-19 pandemic slowed hard drive production, Bitcoin and Ethereum mining saw an increase, and retail investors in China started fixating on mining. Storage device supply companies seem to be overwhelmed resulting in major price surges. Some name-brand models have seen 100% increase in price. In fact, according to an article by The Block last month, "hard drive manufacturers are feeling the pressure" amid increasing manufacturing costs due to increased demand stemming largely from miners looking for ways around skyrocketing electricity rates in many regions across China.
Many are skeptical of the hard drive shortage. Stacks of hard drives were visible in front yards and garages across the country. In some cases, people are hoarding supplies to flip for profit. The market may have much more hard drive supplies than we are led to believe. There have been reports that certain dealers or wholesalers may be trying to hoard their stocks before they sell them off with high price tags.
Regardless of the setbacks, this new form of mining (or farming) is absolutely expected to evolve the cryptocurrency industry as a whole.
