What Is the Primary Difference between Hashrate Rental and Traditional Mining Pools?
A traditional mining pool aggregates the hashrate of its members to achieve a more consistent block reward, sharing profits based on contribution. Hashrate rental markets, however, allow a user to pay a fee to direct the pooled hashrate toward a specific coin and a specific mining address for a set period.
The renter gains full control over the hashrate's target, which is distinct from the cooperative, profit-sharing nature of a mining pool. Rental is a service contract, while a pool is a cooperative effort.
Glossar
Mining Pool
Consensus ⎊ Mining pools represent a collaborative effort among network participants to aggregate computational resources, increasing the probability of successfully mining blocks and earning associated rewards within a Proof-of-Work cryptocurrency system.
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.
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.
Renting Hashrate
Action ⎊ Renting Hashrate is the action of procuring temporary access to computational mining power from a third-party marketplace, enabling the lessee to direct that power toward a specific Proof-of-Work blockchain.
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.