How Does a 'Hash Rate Marketplace' Function? ⎊ Path

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.

Does the Cost of a 51% Attack Change Based on the Coin’s Market Capitalization?

What Is the “Hash Rate” of a Cryptocurrency Network?

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

Define the Obligation Difference between a Call Option Buyer and a Futures Buyer

Does the Limited Loss Apply to Both Call and Put Option Buyers?

What Is a “Data Marketplace” in the Context of Decentralized Oracles?

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

What Is a ‘Hash Rate’ and How Is It Measured?

Glossar

Hash Rate

Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.