Chia’s “green paper” contends that Bitcoin is inefficient and that if things continue the way they are going, Bitcoin mining will account for a half percent of the world’s energy next year. That’s because Bitcoin transactions and its incentive structure require the use of a lot of computing power.
Chia Network has therefore designed its cryptocurrency platform to be more efficient, using something called Proof of Space and Proof of Time.
The larger goal is to fix problems related to modern banking, with greater efficiency and lower costs than alternatives like Bitcoin.
“We’re making sure that the fundamental building blocks of our protocol are confidence-inspiring and available to all,” said Chia Network founder Bram Cohen in a statement. “By having an open competition, we’re making sure that the absolute best implementation anyone has is available to all.”
Contestants participating in the three-month competition will create implementations of Chia’s proof of space consensus algorithm. The proof of space competition will be split into three tracks for total awards of $100,000 in prize money. The details of the contest are at Chia.net.