Lumerin Hashpower Marketplace
Unlocking Decentralized, Remote Bitcoin Mining With The Lumerin Hashpower Marketplace
Lumerin enables a new way to mine Bitcoin from home without buying any hardware
Many Bitcoin enthusiasts want to take up mining, but the high entry costs and technical knowledge required are often impenetrable barriers that end up discouraging them.
Alternatives like tokenized hashrate or cloud mining might scratch their itch for a little while, but they fall short in a couple of respects.
- They don’t allow users/customers to mine, but rather send them a piece of the proceeds from mining.
- They require some level of trust, as the miners involved in the process are controlled by centralized entities.
Hashrate Contracts Vs. Cloud Mining: What Are The Fundamental Differences?
Pros and cons of two remote Bitcoin mining methods
Seeking to make mining more accessible while simultaneously upholding the decentralization ethos, the Lumerin Hashpower Marketplace enables remote, hardwareless mining in a direct, peer-to-peer manner.
Here’s how it works.
About the hashpower marketplace
The Lumerin Hashpower Marketplace is a decentralized application built on the Ethereum mainnet where miners and users can trade crypto mining compute power in a decentralized manner.
Miners can take advantage of Lumerin technology to create hashrate offers in the form of smart contracts, where they’ll define:
- Hashrate (TH/s provided).
- Duration (for how long they will provide that hashrate).
- Price (the amount the buyer will have to pay for that hashrate).
Once miners confirm the conditions, the contract will go live on the marketplace. There, buyers will be able to see and buy them.
By connecting with a web3 wallet such as MetaMask, buyers can acquire these hashrate contracts by depositing the payment on the contract’s terms and providing the pool details to point the hashrate.
The contract will then act as an escrow service, releasing the payment funds to the miner as they deliver the hashrate to the address provided by the buyer.
Decentralized, permissionless, automated
The Lumerin Hashpower Marketplace is designed to be consistent with the decentralization ethos.
Indeed, everyone with a web3 wallet and an Internet connection can use and interact with the marketplace, trading hashpower directly on a peer-to-peer basis.
All trades happening in the marketplace are performed through smart contracts, which automate the payout process and securely hold the users’ funds. Lumerin nodes, on the other hand, verify that the work of miners is valid before communicating with the smart contracts, “commanding” the release of funds.
Additionally, each contract created specifies the terms of the agreement and each transaction gets recorded in the blockchain, being accessible to everyone for complete transparency.
Why trade hashrate on the Lumerin Hashpower Marketplace
Besides the general advantages listed above, commoditized hashrate has many concrete benefits for either side of the trade.
- Predictability: The option to set a fixed price provides miners with consistency and regularity in earnings, which are uncommon in the mining industry.
- Hedging: That predictability in turn enables miners to hedge against unpredictable variables of mining, such as difficulty changes and payment variance.
- Management: The marketplace allows miners to set the terms of the trades, granting them a degree of authority over their hashrate that regular mining pools simply don’t offer.
- Independence: No contracts, fixed-term deals, or other inconvenient commitments required.
- Easy: Mine without worrying about equipment maintenance, cleaning, or repairs.
- Accessible: All you need is a web3 wallet and an internet connection. No financial or technical barriers as in regular mining.
- Control: True and authentic mining in a decentralized, remote manner. It’s not just receiving the rewards, it’s actually mining.
- Instant: Miners are running the machines and will reroute the hashrate as soon as you purchase their contracts. You only have to enter the pool address and that’s it!
Moreover, the Lumerin Hashpower Marketplace ensures security, protects users against counterparty risks, and provides a streamlined process to trade hashpower with just a few clicks, which are concrete benefits for all users, regardless of what end of the deal they’re in.
A new way into Bitcoin mining
With the Lumerin Hashpower Marketplace, miners can hedge against common risks of the mining industry, such as Bitcoin volatility, payment variance, and difficulty changes. The marketplace also enables them to take complete control of their product by allowing them to set the terms of the deal.
Additionally, by offering their hashpower on the open market, they can help onboard newcomers to the mining community by lowering the high financial and technical entry barriers that discourage them from getting started.
That said, the aim of the Lumerin Hashpower Marketplace is to provide a platform that benefits both buyers and sellers, enthusiasts and professionals This creates win-win opportunities that also benefit the network as a whole.
Indeed, the platform will allow enterprise-level mining operations to break down their hashrate, allowing for multiple decision makers to take control over it, further decentralizing the network at the hashrate control level.
We believe this will be a great step forward in the mining industry, enabling further revenue and hedging options for miners, but also allowing beginners to finally take part in the mining process.