How Are Payments Structured for Renting Hashrate Compared to a Mining Pool's PPLNS Scheme? ⎊ Path

How Are Payments Structured for Renting Hashrate Compared to a Mining Pool’s PPLNS Scheme?

Hashrate rental payments are typically a fixed fee, paid upfront, based on the requested hashrate and duration (e.g. X BTC per TH/s per hour).

This is a direct service cost. In contrast, a mining pool's PPLNS (Pay-Per-Last-N-Shares) scheme pays miners based on the shares they have submitted over a rolling window of "N" shares.

PPLNS ties payment to the pool's actual success and the miner's recent contribution, unlike the fixed-rate, result-agnostic nature of rental.

Why Is Acquiring 51% of Staked Tokens Generally Harder than Renting 51% of Hashrate?

How Does “Luck” Factor into the Profitability of a PPLNS Mining Pool?

How Does the Variance in Block Discovery Impact a Miner’s Income under PPLNS?

How Does the Pricing Model for Hashrate Rental Typically Work?

What Is the Risk to the Renter in a Hashrate Rental Agreement?

What Is the Primary Difference between Hashrate Rental and Traditional Mining Pools?

What Is the ‘Luck’ Percentage Displayed by Mining Pools, and What Does It Indicate?

What Is the Concept of “Renting Hash Power” and Where Is It Done?

Glossar

Renting Hashrate

Action ⎊ Renting Hashrate is the action of procuring temporary access to computational mining power from a third-party marketplace, enabling the lessee to direct that power toward a specific Proof-of-Work blockchain.

Hashrate

Measurement ⎊ Hashrate is the quantifiable measure of the total computational power dedicated to solving the cryptographic puzzle required to mine a new block on a Proof-of-Work blockchain.