Chia Network bags $61 million in funds, to go public with IPO in 2021

Chia Network bags $61 million in funds, to go public with IPO in 2021

California-based blockchain company, Chia Network has secured USD 61 million in funding from leading venture capital companies- Richmond Global Ventures and Andreessen Horowitz. The investment round was also supported by Co-Founder and CEO of AngelList- Naval Ravikant, True Ventures, and Breyer Capital.

Gene Hoffman, President and CFO of Chia, mentioned that their firm is aiming at going public through an initial public offering in 2021. Chia focuses on considerably clarifying its environment and allow customers to use the currency to hedge public market volatility, making it different from other digital coins. 

Established in the year 2017 by developer of BitTorrent- Bram Cohen, Chia Network has raised over USD 3.3 million in seed funding rounds led by Andreessen Horowitz and Naval Ravikant in the year 2018.

It is worth noting that Chia’s value proposition is its distinguished consensus mechanism, “Proof of Space and Time”. This method offers superior energy efficiency as compared to Proof-of-Work mining, aiming at identifying the unused computing power on the hard drive of validators.

In order to create Chia token, users install Chia’s software that writes plots which are cryptographic data to its hard drive. The blockchain broadcasts a problem for every new block after every 18 seconds- with the probability of an individual winning the block determined by the presence of unused resources offered by developers.

Although the company claims that its token is a green substitute to Bitcoin and other cryptocurrencies, some have raised questions over its eco-friendly claims. For instance, David Gerard, the author of Attack of the 50 Foot Blockchain, accused Chia of being heavy on electricity and requiring many CPU threads to run continuously.

Gerard claimed that instead of carbon dioxide, the firm produced vast quantities of e-waste, assembled into costly computing parts that are turned into toxic, unrecyclable landfills within weeks.

Source Credit: https://cointelegraph.com/news/chia-raises-61m-for-eco-friendly-crypto-despite-critics