How Do Hashrate Rental Platforms Typically Structure Their Pricing Models?
Hashrate rental platforms typically use an auction-based or a fixed-price model. In the auction model, buyers bid for a specific amount of hashrate, and the market determines the price dynamically.
The fixed-price model offers a set rate for a defined duration, simplifying the transaction. Pricing is generally denominated in a stable currency or a major cryptocurrency like Bitcoin and is based on the current profitability of mining the target coin, the hashrate demand, and the duration of the contract.
Glossar
Hashrate
Definition ⎊ Hashrate represents the total computational power per second that a miner or the entire network dedicates to solving cryptographic puzzles in a Proof of Work blockchain.
Hashrate Rental
Allocation ⎊ The practice of securing computational resources, specifically hashing power, within a proof-of-work cryptocurrency network, through a contractual agreement rather than direct ownership.
Hashrate Rental Platforms
Mechanism ⎊ Hashrate rental platforms represent a novel financial instrument within the cryptocurrency ecosystem, facilitating temporary access to mining power without direct hardware investment.