In 2021, cryptocurrency mining will celebrate its 12th anniversary. It’s obviously not a fad, but it’s also not a common habit. However, the concept of mining using high-end computer gear is beginning to gain traction amongst the general public.
Chia, on the other hand, is completely another animal. Although some of the essential blockchain concepts remain the same as before, Chia coin does away with the Proof of Work algorithm for protecting the network.
We are gonna go over the basics of the Chia, Chia mining basics and then cover the costs and profits of it if you are planning to use a cloud storage solution.
According to their official website, Chia is described as:
Chia Network develops a blockchain and smart transaction platform created by the inventor of BitTorrent, Bram Cohen. It implements the first new Nakamoto consensus algorithm since Bitcoin in 2008. Proofs of Space and Time replace energy-intensive “proofs of work.”
Chia is rather a new coin that has sparked interest in the mining and crypto community because of the much simpler mining process, no GPUs needed. All you need is to use your unused storage to start getting some coins and get in the games.
Chia Mining Basics
There is a chance factor in mining Chia. Your probabilities of solving a Chia coin block are equal to your space portion of the total network space (Called Netspace). As of now, Chia’s netspace sits at roughly 14.143 EiB (Exbibytes). That means if you dedicate a complete 100TB (100 trillion bytes) of storage to Chia plots, your Chance to win at least once in a month is 61.162% / month.
if we drop the percentage part. Those might sound like terrible odds — they’re not great — but the catch is that there are approximately 4,608 Chia blocks created every day (a rate of 32 blocks per 10 minutes, or 18.75 seconds per block), and any one of them could match your plot.
Simple math can then give you the average time to win, though Chia calculators make estimating this far easier than doing the math yourself. A completely full 10TB HDD can store 91 standard Chia blocks (101.4 GiB). Yeah, don’t get lazy and forget to convert between tebibytes and terabytes, as SI units definitely matter. Anyway, 91 blocks on a single 10TB HDD should win a block every three months or so — once every 84.3 days at the current netspace, which continues to increase rapidly.
Each Chia plot ends up being sort of like a massive, complex Bingo card. There’s lots of math behind it, but that analogy should suffice. Each time a block challenge comes up, the Chia network determines a winner based on various rules. If your plot matches and ‘wins’ the block, you get the block reward (currently 2 XCH, Chia’s coin abbreviation). That block reward is set to decrease every three years, for the first 12 years, after which the block reward will be static ad infinitum. The official FAQ lists the reward rate as 64 XCH per 10 minutes, and it will get cut in half every three years until it’s at 4 XCH per 10 minutes with a block reward of 0.125 XCH.
Of course, luck comes into play. It’s theoretically possible (though highly unlikely) to have just a few plots and win a block solution immediately. It’s also possible to have hundreds of plots and go for a couple of months without a single solution. The law of averages should equalize over time, though. This means to better your chances, you’ll need more storage storing more Chia plots. Also, just because a plot wins once doesn’t mean it can’t win again, so don’t delete your plots after they win.
Chia Mining with Cloud Storage
Now comes a problem with some of the newcomers, not everyone can afford the costs of buying massive amounts of storage, whether it’s SSD or HDD and set up their own farm,
After that, comes the hardware’s value going down after mining it for a while and of course the next thing that is there is the electricity and maintenance of the structure you’ve built.
But there is a much easier way of doing this: Cloud Storage.
Why using cloud storage for mining Chia (XCH) is a good idea?
- Cost: You can now mine Chia with Cloage. Here’s a breakdown of how the costs will look like with Cloage to setup a 100 TB setup to mine Chia:
- A 100 TB Storage will cost you around $16,000. This, of course, means that you will have to pay much higher costs for space, electricity and maintenance which we didn’t include here.
- Now a 100 TB of storage on a Cloage will cost you around $1500 per month only. This will not include any other costs such as Hardware wearing out to maintenance fees.
- Usability: There is a technical barrier to purchasing, configuring and maintenance the setup of your own chia mining place. But with Cloage, you can do this in less than an hour!
- Maintenance: When you buy your own hardware and decide to mine the Chia yourself, you will be obligated to massive costs of maintenance which include electricity (Although the electricity usage of Chia is much less than mining Bitcoin, there is still some electricity usage), Monitoring your hardware for faults and errors and simply the time you will be putting into this as you will need to be on to of your mining platform most of the time. By using cloud storage solutions, this cost will come down to zero. All you have to do is to turn off everything and check your Chia coins being mined at a great speed.
Start Mining Chia now!
The most precious thing you will be missing if you don’t start mining your Chia coins now is money!
If you are still not sure whether using this method is the right solution for you or your mining solution, you can schedule a demo to see whether this is the right solution for you. Sign up for a 30-day free trial of Cloage now!