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posted by martyb on Sunday May 02, @08:56AM   Printer-friendly [Skip to comment(s)]
from the make-a-turkey-of-crypto-by-storing-chia-pets-in-the-cloud? dept.

Turkey Adds Crypto Trading to Anti-Money Laundering and Terror Funding Laws

Just weeks ago, almost anyone with $6,000 could establish a crypto trading platform, which led to the flooding of the cryptocurrency industry in the country with scammers and financially unreliable organizations. Now, Turkey wants to regulate cryptocurrency trading with anti-money laundering and terrorism funding rules.

Early on Saturday the president of Turkey published a decree that expanded rules governing cryptocurrency transactions. From now on, 'crypto-asset service providers' will be regulated in accordance with anti-money laundering and terrorism funding laws, reports Reuters. The new rules have already been published in the Official Gazette, so they are effective immediately.

Chia is a storage-based cryptocurrency designed by BitTorrent creator Bram Cohen. It uses "proof of space and time" instead of "proof of work":

Proof of space can be thought of as a way to prove that you are keeping some storage unused on your hard-disk drive. Users of the Chia blockchain will "seed" unused space on their hard-disk drive by installing software which stores a collection of cryptographic numbers on the disk into "plots." These users are called "farmers." When the blockchain broadcasts a challenge for the next block, farmers can scan their plots to see if they have the hash that is closest to the challenge. A farmer's probability of winning a block is the percentage of the total space that a farmer has compared to the entire network.

The Chia network has already reached 1 exabyte (1 million terabytes) and may lead to increases in the prices of HDDs and SSDs:

Numbers released by Chia show that their Chia Coin cryptocurrency has hit over 1 Exabyte of storage capacity, a 5.7x increase since the beginning of April but there's also fear of a global HDD and SSD shortage. This goes off to show the insane popularity that Chia Coin has garnered prior to its official launch (trading) next week.

[...] The mining process of Chia Coin requires a large amount of free space and runs several reading & writing operations. In this case, endurance (TBW) is equally as important as speed, so consumer SSDs aren't the best choice for mining due to their lower endurance, and running these operations will significantly reduce the lifespan of an SSD. Hence, the target for these miners is primarily hard drives and data center SSDs.

A few days ago, we reported that storage manufacturers in Asia-Pacific markets are declining SSD warranties to users who had been mining on them. We also reported how certain manufacturers are going to offer dedicated Chia Coin Cryptocurrency mining SSDs to users & are currently being mass-produced.

Also at Notebookcheck.

See also: Bittorrent Creator Bram Cohen's Crypto Project Chia Sparks Hard Drive and SSD Shortages


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  • (Score: 0) by Anonymous Coward on Sunday May 02, @11:44AM

    by Anonymous Coward on Sunday May 02, @11:44AM (#1145353)

    Not sure if Chia is to blame, but the glut of cheap, surplus PCI-e flash accelerators does seem to be drying up on ebay. I purchased a 1.2 TB iO Duo for around 100 USD last year and there were multiple sellers to choose from at that price. A quick search now shows higher prices and fewer sellers, though the smaller capacity are still available.

  • (Score: 1, Insightful) by Anonymous Coward on Sunday May 02, @01:12PM

    by Anonymous Coward on Sunday May 02, @01:12PM (#1145370)

    Sounds risky... if they put child porn on your drive can you use your ChiaCoin fantasy currency to bribe your way out of prison?

  • (Score: 5, Insightful) by looorg on Sunday May 02, @01:28PM (20 children)

    by looorg (578) on Sunday May 02, @01:28PM (#1145372)

    This sounds beyond stupid. So now we are not only wasting vast amounts of electricity to mine crypto now they are also burning drives, I guess the previously or "normal" crypto also burned graphics cards and other peripherals but to just add more and more to the bunch seems utterly wasteful. Dead tree, cotton and metal money are looking more and more environmentally friendly right now.

    • (Score: 5, Informative) by takyon on Sunday May 02, @01:46PM (1 child)

      Would you like to read Chia's white paper?

      Just kidding, it's a green paper [chia.net].

      BitTorrent was a lot better for the planet.

      --
      [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
      • (Score: 2) by Freeman on Monday May 03, @03:50PM

        by Freeman (732) on Monday May 03, @03:50PM (#1145698) Journal

        BitTorrent was about easily transmitting information that people were interested in. Some businesses picked it up and made good use of it, but mostly it's a way to help Open Source software reduce their costs by letting users easily share with each other.

        Crypto-currency is about making money. Where money making is concerned, people will figure out how to do so and then do it. While it may be seen as a "waste", it's no more of a waste than people using cars to get to work.

        --
        "I said in my haste, All men are liars." Psalm 116:11
    • (Score: 4, Interesting) by Anonymous Coward on Sunday May 02, @01:57PM (7 children)

      by Anonymous Coward on Sunday May 02, @01:57PM (#1145380)

      It almost like a flaunting of wealth, to burn real hard dollars to create financial tokens.

      But seriously. Does this just mean that we have run out of problems to solve with computers? It was bound to happen one day. Now rather than start work using our brains again we have collectively decided to jump the shark doing pointlessly huge amounts of calculations just because we can. Oooh how many digits of pi?

      • (Score: 3, Insightful) by khallow on Sunday May 02, @02:41PM (5 children)

        by khallow (3766) Subscriber Badge on Sunday May 02, @02:41PM (#1145395) Journal

        But seriously. Does this just mean that we have run out of problems to solve with computers?

        No, it doesn't mean that. This is just solving another problem.

        Now rather than start work using our brains again we have collectively decided to jump the shark doing pointlessly huge amounts of calculations just because we can. Oooh how many digits of pi?

        What makes you think this is pointless? The general idea of cryptocurrencies is that they provide a secure, decentralized way to trade. It solves a lot of problems with the increasingly authoritarian finance systems that are in place worldwide.

        • (Score: 3, Interesting) by https on Sunday May 02, @08:01PM (4 children)

          by https (5248) on Sunday May 02, @08:01PM (#1145465)

          Sure it solves problems. Artificially created, but problems. As I understand it, every miner is racing t obe the first to take part in accepte solutions. This creates the brand new problem that every other miner's work on that problem, their electricity spent on it, is fucking wasted. All to re-invent reciepts. Morons.

          --
          Offended and laughing about it.
          • (Score: 1) by khallow on Sunday May 02, @08:11PM (2 children)

            by khallow (3766) Subscriber Badge on Sunday May 02, @08:11PM (#1145468) Journal

            Sure it solves problems. Artificially created, but problems.

            Well, that's good enough. Artificially created problems are still problems.

            • (Score: 2) by looorg on Sunday May 02, @08:22PM (1 child)

              by looorg (578) on Sunday May 02, @08:22PM (#1145473)

              Well, that's good enough. Artificially created problems are still problems.

              True. If you can't find or solve real problems, create some problems so you have something to solve. It's not unheard of or uncommon. Still it's a damn waste of resources. Also it's not like we have run out of real world problems that need solving that we have time (or processor cycles) to waste on something that is more or less a novelty (or something that was mainly used in the facilitation of crime or at least drug dealing which may or may not be a crime depending on when and where you are) , or at least was until a few years ago. Now it's apparently more of an investment scam in the making.

              • (Score: 3, Insightful) by khallow on Sunday May 02, @08:30PM

                by khallow (3766) Subscriber Badge on Sunday May 02, @08:30PM (#1145478) Journal

                If you can't find or solve real problems, create some problems so you have something to solve.

                Sorry, that's irrelevant. The centralization and control of currency transactions by authoritarian forces are real problems even though they are artificially created by the governments of the world.

          • (Score: 0) by Anonymous Coward on Monday May 03, @12:54PM

            by Anonymous Coward on Monday May 03, @12:54PM (#1145645)

            The artificially created problem is that of inflation. If you can make the powers that be stop inflating everyone's wealth away, there will be no reason for an inefficient system like Bitcoin to exist.

            All you need to destroy Bitcoin is a set of honest central bankers. Good luck.

      • (Score: 2) by looorg on Sunday May 02, @08:19PM

        by looorg (578) on Sunday May 02, @08:19PM (#1145469)

        I don't think we have run out of interesting problems to solve so that we now have to resort to trivial, albeit hard and many, calculations just to have something to do. Perhaps the question should be if this cryptocurrency thing is creating more problems then it solves. Having a digital currency etc is all fine but it seems to be seriously fucking about with utilities mainly, I fairly certain this is not what was in mind when they build new powerplants, subsidize electricity for industry etc. That computers would be standing around 24/7 and do long division or whatever calculation it is now. It's also then now apparently into destroying hardware in the process. Fine you are entitled to do whatever you like with your hardware. But I don't think this is what one had, or should have had, in mind when one creates new hardware -- let's made SSD disks so they can be destroyed while mining crypto. For that matter I'm not entirely sure that graphics cards makers are super thrilled about it either, but they might be after all a sale is a sale but it's also really pissing of their previous consumers (ie gamers).

    • (Score: 0) by Anonymous Coward on Sunday May 02, @10:53PM

      by Anonymous Coward on Sunday May 02, @10:53PM (#1145504)

      I don't know... it's kind of exciting to see the details of how entire peoples go stark raving mad while their civilization falls. Sucks a bit to be on the inside of it while it happens, though.

    • (Score: 1) by crunchy_one on Monday May 03, @01:59AM (6 children)

      by crunchy_one (7884) on Monday May 03, @01:59AM (#1145557)

      Look at the bright side: The market will soon be flooded nearly worn out HDs and SSDs being sold on Amazon and EBay as new at slightly discounted prices.

      • (Score: 2) by looorg on Monday May 03, @03:55PM (5 children)

        by looorg (578) on Monday May 03, @03:55PM (#1145702)

        Do people really go for used harddrives? Except as some sort of dataharvesting operation. I think it would be the last thing as far as second hand parts goes I would get.

        • (Score: 1) by crunchy_one on Monday May 03, @04:36PM (4 children)

          by crunchy_one (7884) on Monday May 03, @04:36PM (#1145717)

          Does any informed person buy a used HD or SSD? Probably not. On the other hand, there is a cornucopia of "renewed" drives available on Amazon, right now!

          • (Score: 2) by looorg on Monday May 03, @06:24PM (3 children)

            by looorg (578) on Monday May 03, @06:24PM (#1145758)

            The Refurbished stuff? Right. I don't even send drives back to the manufacturers anymore. They said I was getting new drives, but it turns out what they referred to as a replacement drive was a refurbished drive (so a drive that failed that they "fixed"). I was also paying for all the postage and packaging and it turns out that was almost as expensive as getting a new drive. So now I keep them around instead in the box-o-dead-drives cause you never know when you need a little component or some magnets.

            • (Score: 1) by crunchy_one on Monday May 03, @07:00PM (1 child)

              by crunchy_one (7884) on Monday May 03, @07:00PM (#1145771)

              It gets worse. Not too long ago, I purchased an HD advertised as new on Amazon, only to run SMART and find that there were thousands of hours on the clock. I did get a refund after making a PITA out of myself. As a rule, I now never buy an HD or SSD unless I can get an explicit statement that the drive is covered by the manufacturers warranty. And you're absolutely right, the manufacturers warranties aren't worth a hot damn because you'll wind up with postage and hassle that exceeds the value of the drive and on top of that you'll just get someone else's problem in exchange. But, if it is warrantied, then there's a good chance it is actually new and unused.

              • (Score: 2) by looorg on Monday May 03, @07:56PM

                by looorg (578) on Monday May 03, @07:56PM (#1145791)

                I say it's mostly the hassle that makes me not do it anymore. It's a few years ago now so things might have changed. But it was a Seagate drive. I contacted their support. I had to download a tool to run to identify the drive and enclose that with the complaint. This is smart I guess on their part -- they get all the data either way on how the drive failed but you can't even start a ticket without it so no matter what you do they get stuff and you get shit.

                It took a while before they got back to me and then said that OK we see the drive is failing/faulty we'll ship you a replacement drive if you send the bad one in first and then there was this long line of instructions on how it should be packaged and who I could ship it with. It among other things had to be stored in a SeaShell plastic box -- nothing else was exceptable for packaging. All at my expense. Also there was no local address but it had to be shipped to their European collection point at Schiphol in Holland. So more postage. So I added it all up and noted that the difference was minuscule compared to just putting the drive in a drawer and buying a new one from a local seller.

                Somehow I end pretty much on the losing end either way. I have to ship a failing drive, with data one it to them. Can't wipe the drive since it's failing badly. They get information on how their drives are failing and I get a used but "fixed" drive back if I pay almost as much as for a new drive. It just doesn't make much sense. It makes somewhat sense perhaps on a corporate level if you run multiple raids and such where you use up disk left and right and can just bulk return then. But then you have other warranties and doesn't have to put up with this consumer return bullshit. But this shipping a single drive is just not worth it.

                Had it been a guaranteed new drive then yes I would probably have done it. But for this refurbished replacement stuff? Hell no.

            • (Score: 0) by Anonymous Coward on Monday May 03, @07:02PM

              by Anonymous Coward on Monday May 03, @07:02PM (#1145772)
              I've got "refurbished" WD drives as warranty replacement for a failed WD hard drive. They were basically sending me faulty drives. I tested (diskfresh etc) the replacement drives they sent and kept sending them back because they didn't pass (pretty crappy "QA/QC" that the failures were so detectable which is why I wrote "refurbished" and not refurbished). Eventually they gave me a drive that passed. It was higher capacity too (by 1TB). It's started failing now though but it's been nearly 5 years. I think it some errors and had to be reformatted a few years ago too, so it probably was a refurbished drive...
    • (Score: 2) by FatPhil on Monday May 03, @06:44AM

      by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Monday May 03, @06:44AM (#1145595) Homepage
      Waste has been rewarded ever since economists decided that "GDP" was something that should be maximised.

      (Imagine a well-functioning economy with GDP X. Now imagine sticking a whole bunch of middlemen that produce nothing, they just get in the way of every transaction. Congratulations - you've now imagined an economy with GDP 2X - that's got to be better, right?)

      But yes, all things crypto//blockchain seem to be able to take previous levels of lunacy to new depths.
      --
      I know I'm God, because every time I pray to him, I find I'm talking to myself.
    • (Score: -1, Troll) by Anonymous Coward on Monday May 03, @08:00PM

      by Anonymous Coward on Monday May 03, @08:00PM (#1145795)

      it doesn't burn drives, you fucking asshat.

  • (Score: 2, Insightful) by Anonymous Coward on Sunday May 02, @02:13PM (2 children)

    by Anonymous Coward on Sunday May 02, @02:13PM (#1145387)

    Just like today, your money seems normal, just because you’ve never looked deeper to see it is really debt, that dollar in your pocket is owed to someone somewhere and is collecting interest
      https://www.youtube.com/watch?v=4AC6RSau7r8 [youtube.com]

    • (Score: 2) by FatPhil on Monday May 03, @06:49AM (1 child)

      by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Monday May 03, @06:49AM (#1145596) Homepage
      If money is debt, then I am my mother.

      Do not confuse "brought about by" with "is".

      I presume your link is /Money As Debt/ - which is indeed great and highly informative. (At least the original, and part II are, I've not seen the most recent part III yet, but it's in my mental queue of things to watch.)
      --
      I know I'm God, because every time I pray to him, I find I'm talking to myself.
      • (Score: 0) by Anonymous Coward on Tuesday May 04, @03:31AM

        by Anonymous Coward on Tuesday May 04, @03:31AM (#1145949)

        Just like today, your money seems normal, just because you’ve never looked deeper to see it is really debt, that dollar in your pocket is owed to someone somewhere and is collecting interest

        Politifact says : Mostly True.

        The dollar in your pocket is not a debt you owe but someone, somewhere does, and the bankers are collecting interest on it.

  • (Score: 1, Funny) by Anonymous Coward on Sunday May 02, @06:34PM (1 child)

    by Anonymous Coward on Sunday May 02, @06:34PM (#1145449)

    I'm waiting for the crypto guys to invent "proof of identity". See, it's very efficient. They just collect a little bit of information about you, and link it to an account number. Then the blockchain stores how much money you have in any currency. The encryption is used only to secure the transaction and the data. Then they'll augment it with some privacy features so you're still on the chain but not every other user can see your account. Of course it'll be decentralized, but for convenience they'll also make it possible to use the PoI based system on a private exchange which holds your keys in a custodial account like Coinbase. Then some day, the light bulb might go on.

    • (Score: 2, Funny) by Anonymous Coward on Sunday May 02, @11:03PM

      by Anonymous Coward on Sunday May 02, @11:03PM (#1145505)

      I'm waiting for crypto-terrorists to drive two 18-wheelers up to opposite sides of the buildings wherever Coinbase's servers are, and with the large electromagnets inside, emit a localized electromagnetic pulse to try to scramble all their servers and the crypto wallets therein. Sure, Conbase (typo left on purpose) probably has offsite backups (if they're not insane) and can get back up, eventually, but the hit to the crypto markets would be amazing to watch.

      But who would ever do such a thing? Oh, maybe the Federal Reserve, rabid libertarian gold bugs, Elon Musk when he's really high, the Girl Scouts (who'd suspect them?)...

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