BTC mining has become available to everyone.
The liquid bitcoin concept recently presented has stirred up a lot of questions and interest from the crypto community. Now it’s time to add a bit of context.
What Is The Liquid Bitcoin Hashrate Protocol?
The liquid bitcoin hashrate (LBH) protocol is an innovative full-fledged tool to use bitcoin hashrate on the Ethereum/BNB chains.
This bitcoin hashrate is an NFT backed by the computing power of real data centers from service providers.
Each NFT possesses metadata containing the amount of hashrate provided by this crypto art and its energy efficiency.
Since the hashrate of bitcoin requires its owner to pay for electricity, these two indicators directly affect the total amount of BTC mined.
For example, if we take 128 TH/s, 35 W/TH NFT, then electricity fees for it will be 49%. After these deductions, the digital miner will bring its holder a net reward of $1,316 for mining [1]. Improving energy efficiency alone can significantly affect final payments, increasing them up to almost 30% (data current as of the time of writing).
Third-party service providers can also turn to the GoMining protocol to issue their NFTs with a liquid hashrate based on it.
What Opportunities Does This Liquid Bitcoin Hashrate Provide to Holders?
1. Users can purchase any available NFT from service providers or on the secondary market and start mining BTC from the very first day.
2. A special discount system on electricity and maintenance gives holders the opportunity, subject to certain conditions, to earn even more BTC.
3. NFT holders are also given the chance to join pools and mine BTC on a competitive basis. Holders of GoMining ve tokens will be able to vote for the distribution of rewards among those who mine in Solo and Pool mode.
4. In the near future, NFT can be used as collateral. The protocols behind such DeFi projects as Blur [2] and ParaSpace [3] can be considered examples in this area.
5. If necessary, NFT holders can sell their bitcoin hashrate on the GoMining marketplace or any third-party platforms, such as OpenSea or Binance.
Conclusion
The liquid bitcoin hashrate protocol is an ecosystem for the release and use of tokenized hashrate that can radically alter the approach to BTC mining. Because of it, not only large players and professionals, but also users with small checks without any crypto experience will be able to own and manage the bitcoin hashrate.
LBH is an important step that will help blockchain technologies enter everyone’s life in the future.
