• Home
  • Blockchain
  • Arbitrum Facilitates Peer-to-Peer Trading of Bitcoin Mining Power Among Users

Arbitrum Facilitates Peer-to-Peer Trading of Bitcoin Mining Power Among Users

Sep 27, 2023 at 11:55 am

Bitcoin miners now possess the ability to efficiently trade their hashing power with interested parties. These transactions are conducted through the utilization of smart contracts, delineating specific details about the hashrate, encompassing its quantity, duration, and corresponding price.

A recent advancement within the Arbitrum network, named the Lumerin Hashpower Marketplace, empowers Bitcoin miners to seamlessly engage in the buying and selling of capacity, catering not only to fellow miners but also to non-mining individuals. This pioneering platform extends an opportunity to purchasers to augment their potential for earning bitcoin rewards, all without the necessity of investing in swiftly depreciating equipment. Transactions are executed through smart contracts, guaranteeing transparency throughout the process, and payments are settled in real-time upon the completion of the contract.

For sellers, especially miners located in regions with low electricity costs, this platform introduces the prospect of arbitrage by vending hashrate contracts at prevailing market prices, enabling them to pocket the difference.

Comprehending Hash Power

Hash power, also recognized as hashing power, signifies the computational capacity of a computer or specialized hardware to execute and resolve diverse encryption algorithms that serve as the protective barrier for blockchains like Bitcoin. Miners, who possess and operate extensive hardware systems, consume a notable quantity of electricity in order to sustain the network, ultimately reaping bitcoin (BTC) rewards in return.

Nevertheless, certain miners may find themselves with an excess capacity that would otherwise remain unused. Marketplaces such as Lumerin provide an avenue to vend this surplus power to interested buyers, who in turn receive a portion of the bitcoin rewards.

This model effectively allows users to partake in Bitcoin mining devoid of the necessity for specialized expertise, substantial investments in hardware, or enduring long-term commitments.

You might also like: Upbit-Powered Surge: ImmutableX's IMX Token Rockets 35% in Volume Rally

Related News

Sign up for daily crypto news in your inbox

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.