How Does the Pricing Model for Hashrate Rental Typically Work?
The pricing model for hashrate rental is typically a marketplace auction or a fixed-price contract based on the unit of hashrate per time (e.g. Gigahash per second per day).
The price is highly dynamic, influenced by the profitability of the target coin, the current network difficulty, and the overall supply and demand of hashrate on the rental platform. The renter pays upfront, and the miner receives the payment, often in a stablecoin or a major cryptocurrency, providing a clear financial transaction separate from the target coin's block rewards.
Glossar
Unit of Hashrate
Unit ⎊ A Unit of Hashrate is the fundamental, standardized measure of computational power, typically expressed in Terahash per Second (TH/s) or Gigahash per Second (GH/s), used to quantify the capacity dedicated to solving cryptographic puzzles.
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.
Gigahash per Second
Measurement ⎊ Gigahash per Second (GH/s) is a standardized unit of measurement quantifying the computational power, or hash rate, dedicated to solving cryptographic puzzles on a proof-of-work blockchain network.
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.