thecoinrepublic.com
Qualified investors can now avail facilities for buying and selling tokenized hashrate in a new marketplace by Navier. North American Bitcoin mining hosting and services firm released a new platform called “Reactor.xyz” that is aimed at providing users added control over acquired hashrate, also enabling them to sell it ahead.
Navier provides extra features
Users will have ownership of an asset and a select amount of hashrate. These rates will mine for a certain amount of time only, says CEO Josh Metnick.
If a miner or investor is not interested in setting up their own mining facility, they are left with but two options. Either they can buy a physical machine and hosting services offered by companies like Compass Mining. Or they can also work with many cloud mining firms like Bitdeer of BitFuFu, as they own and operate mining machines, which they rent out hashrate for a pre-decided amount of time.
According to Metnick, the solution provided by their new platform “Reactor.xyz” is largely similar to cloud mining; the difference is that it provides users greater control over hash power and facilitates the choice of mining pools.
How Will It Work?
To represent the ownership of hash power, ERC-721 tokens will be used. Moreover, these tokens will also be easily traded among users. Also, this hashrate-on-sale comes from industrial-scale bitcoin miners, unlike other cloud mining firms. This could prove to be a cheaper alternative for already affected crypto miners. Most miners suffer from rising electricity rates, increasing mining difficulties and unstable coin rates.
Problems with the existing system
As per Navier, the two commonly used models come with lot of uncertainty. In the model provided by Compass mining, one has to trust the other firm for the delivery of the right working machines. Plus, they have to be shipped carefully and on time. Then there is the signing of the agreement for hosting, all this while hoping there is nothing dubious in the contract. Cloud mining firms offer a synthetic hashrate, and users have little control over them.
Over the years, it has been understood that mining rigs and colocation facilities do not have a robust business model. Most customer complaints are about the promised slow working machines and variable hash rates.
How will it benefit the mining industry?
Navier is trying to address the elephant in the room. They aim to use tokenization and technology to ensure redundancy across sites for a given amount of hash power. These methods are to target 100% uptime.
The mining industry has been facing heat from rising power prices and the increasing difficulty levels in the mining process. If Navier can deliver what they have promised, miners and investors can have options of extra control over hashrate. This facility should bring more users into the arena, thereby increasing the number of validators and thus decreasing the transaction time.