Security News > 2021 > May > Hetzner cloud server provider bans cryptocurrency mining
Popular German cloud hosting and dedicated server provider Hetzner has banned cryptomining on its servers after users have been using their large storage devices to mine Chia.
For those not familiar with Chia, instead of mining the cryptocurrency with specialized equipment or graphics cards, it uses a new mining system called Proof of Space and Proof of Time.
"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," the Chia FAQ explains.
Out of concern that Chia mining will damage their drives due to heavy use, the hosting provider has banned all mining on their cloud servers, hosting services, and storage boxes.
"In order for us to operate a high-performing and reliable network for our customers, the operation of applications for mining crypto currencies is prohibited," says the Hetzner Storage Box service agreement.
"With storage boxes this leads to problems with the bandwidth on the host systems. With chia mining there is also the problem that the hard drives are extremely stressed by the many read and write processes and will therefore break."