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Bithority miner_side scenario

cryptopanter edited this page May 23, 2021 · 2 revisions

Bithority miner-side scenario:

  1. Miner-1 generates computational power of 1000 Th/s (This part is related to Hashrate Check unit)

  2. It has operation cost of x $ per month

  3. The farm owner wants to take finance or loan with 100% margin to cover up monthly costs without selling his produced Bitcoin

  4. So he mines "b" amount of Bitcoin with cost of "b-cost" $ and he can put in sale the regarded hashrate for the price of double that cost! (b-price) = 2*(b-cost) It's like he put b/2 amount of minted Btc in his pocket and sell the other half for some price to that of his total cost of generated b amount. Therefore, he has saved some Bitcoin amount as well as he has paid the total cost!

  5. to make sure that the claimed miner is a real miner all the payments happen after he sent the Bitcoin to customers...And then miner payment will be automatically initiated to his address by Bithority contract.

  6. let's say the rented hashrate sale is a 1-year contract, then the customer pays for it (This is related to Sales Market unit) and the given amount will be locked in Bithority contract and released installment by installment after each miner's payment... So the fund won't be given to miner at once but in several installments. However, that fund is already secured for him throughout the total contract time, say 1 year! And whatever price Bitcoin gets, the confirmed fund is still there (fixed in $) and safe! (this part is related to Penalty Logic unit) .. In this way, the raised fund (from selling hashrate) is only suitable for real miners with set up and running facility, so other fake parties or individuals will stay away from it.

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