Chia Cryptocurrency Farming Is Real and Uses Lots of Storage

Chia Cryptocurrency Farming Is Real and Uses Lots of Storage

This IDC Market Perspective provides IDC's point of view regarding the potential for the Chia platform to compete and succeed against other cryptocurrencies and its impact near term and long term on the HDD and SSD markets and on the Global StorageSphere. In 1Q21, Chia Network launched the first storage-intensive "proof of space and time" blockchain platform that is significantly different from all other computationally intensive proof-of-work cryptocurrency platforms. A rush by early adopter Chia farmers to add storage capacity quickly came as a surprise to HDD suppliers as it triggered strong, unexpected demand for high-capacity 3.5in. HDDs in the distribution and retail channels leading to higher prices and longer lead times."The Chia Network was developed and launched on the premise that HDD storage capacity is underutilized, and IDC's Global StorageSphere data confirms they are correct," according to John Rydning, research vice president, IDC's Global DataSphere. "Making use of underutilized HDD storage capacity represents a good long-term opportunity to expand the Chia Network netspace. However, in the weeks following its launch, it led to a rush by early adopter Chia farmers to put new storage capacity in place quickly, creating shortages of high-capacity 3.5in. HDDs that is likely to persist through the remainder of CY21."

Please Note: Extended description available upon request.