Thinking Outside The Box: Cryptographic Proof of Hashrate
Long, a serial entrepreneur in the fields of Bitcoin, drones and manufacturing, explains that previously, many cloud-based mining services “got away with lots of bitcoin in the beginning because nobody demanded proof of what they were selling.”
He explains that Mintsy will circumvent all of the problems relating to the auditing that their accounting staff may have to deal with, since all of their hashrate information will be transparent.
Naysayers are given proof that the cloud mining company is not double-selling hashrates, instead running a 100 percent full reserve by having all of their information accessible on the blockchain. Long has been working with Bitcoin core developer Peter Todd to implement the cryptographic proof-of-hashrate for Mintsy. This feature is still in development with a planned release in mid- June.
Another feature that Mintsy will have is the ability for users to use the website’s service and rent out their rigs to other users for a fee, much like Betarigs.
In the meantime, users can limit their luck variance by allowing their customer base to “take their contract and point it to any pool.” When users don’t put all of their eggs in one basket, the choice in picking their mining pools is “not only transparent, it’s more efficient since your [one] pool is not lucky all the time.”
But is Cloud Mining still profitable?
It’s no surprise that conventional mining is not as easy as it used to be.
“If your electricity bill is very high, then there is no way you can make money mining even with the most advanced of chips,” explains Marshall. To him, cloud mining not only helps those who don’t have access to cheap power, but also provides new users with a way to ease into mining for a very small fee. The company’s smallest contract costs a little under $20, and users can always trade contracts on the Mintsy marketplace.
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