How Does a 'Hash Rate Marketplace' Function? ▴ Learn

How Does a ‘Hash Rate Marketplace’ Function?

A hash rate marketplace, such as NiceHash, allows users who own mining hardware to sell their hashing power to buyers who wish to mine a specific cryptocurrency without owning the hardware. Buyers bid on the hash rate, and sellers fulfill the orders by directing their miners to the buyer's specified pool and coin.

This market makes hash rate a commodity and is the primary source for attackers to quickly acquire 51% power.

What Is the Relationship between a Coin’s Difficulty and Its Vulnerability to a 51% Attack?

Why Is the Variation Margin Process Not Typically Applied to Options Buyers?

How Is the Specific Base Point for a Curve like Secp256k1 Chosen?

How Is a 51% Attack Easier on a Proof-of-Work (PoW) Coin than a Proof-of-Stake (PoS) Coin?