In What Scenario Would a Developer Rent Hashrate for a New Coin Launch?
A developer would rent hashrate before or immediately after a new proof-of-work coin launch to "bootstrap" the network's security. By renting a significant amount of hashrate, they can ensure the chain has enough security to deter early 51 percent attacks, which are most feasible when the network is brand new and has little organic hashrate.
This temporary measure provides a period of stability, allowing time for organic miners to join the network and establish decentralized security.
Glossar
Rent
Definition ⎊ Rent, in the context of cryptocurrency mining, refers to the cost associated with leasing or utilizing physical space for mining operations.
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
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.