There is a new type of token that is gaining popularity in the crypto space with the launch of coins backed by a specific amount of proof-of-work (PoW) hashrate. On January 6, 2021, Binance launched a new project called bitcoin standard hashrate token (BTCST), a coin that represents 0.1 terahash (TH / s). Additionally, the Poolin mining operation has also revealed a hashrate token called pBTC35A and each token represents 1 TH / s hashrate with predetermined SHA256 processing power.
Tokens backed by proof-of-work
The Bitcoin (BTC) network has seen the protocol’s hashrate increase significantly in recent weeks, despite the difficulty of mining networks being so high. There have also been significant numbers of mining installations added to the network in recent months and stock exchanges like Binance and Huobi have joined the mining battle.
With bitcoin mining showing significant upside potential, a number of crypto industry heavyweights have introduced tokens backed by PoW hashrate. Last week, Binance disclosed a new project called the bitcoin standard hashrate token (BTCST), a coin purported to be backed by 0.1 terahash (TH / s).
“BTCST is moving towards solving the problem of limited exit options by bringing exchange-grade liquidity to Bitcoin mining and secondary trading,” Binance announced on Wednesday. “BTCST will perform as a leveraged Bitcoin token with no liquidation risk. BTCST will create an efficient market for Bitcoin’s mining power in a manner similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin. “
The crypto exchange has added:
BTCST is backed by 0.1 TH / s of real Bitcoin mining power, which has historically been proven to be positively correlated with the performance of the digital gold, and therefore BTCST’s value is rising along with the current skyrocketing Bitcoin market.
Poolin launches the Mars project, Binance PoW Token Audited
However, Binance is not the only company willing to offer a PoW mining token, as the mining operation Poolin has introduced the Mars project. On January 11, 2021, Poolin tweeted, “Join the first Ethereum-based standardized hashrate protocol, earn wBTC and LP rewards. Infinite possibility when PoW mining comes in [an] Ethereum smart contract, ”the mining pool continued. Currently, Poolin is the fifth largest bitcoin pool with around 9.4% or 14 exahash per second (EH / s) today.
The ERC-20 token minted by Pool is called pBTC35A and the company says each coin is backed by the company’s PoW hashrate. “The protocol consists of pBTC35A tokens and [the] MARS sign, ‘from Poolin Announcement explains. “Each pBTC35A token represents 1TH / s hashrate with a predetermined power ratio, mining platforms would be in Poolin Superhashrate’s custody during its lifecycle. While the net profit on wBTC would be split by block. “
Poolin says the first batch will be “50,000 pBTC35A (approximately 50PH / s) tokens for Bitcoin (output with wBTC) mining in this protocol and physically locking more than 50PH / s machines.” Poolin notes that people can obtain the tokens through their own store ((Basic KYC required) or through the token’s Uniswap contract. The company has further detailed that Ethereum and other PoW mineable coins will also be made, but Poolin has no confirmed schedule.
According to Binance Launchpool, the PoW token (BTCST), the recently launched organization has also passed an audit of the blockchain security company Certik, and scored a “98 out of 100 in a security audit”. Users can bet BNB, BUSD and BTC in separate pools to farm BTCST tokens, Binance Launchpool also said.
“Compared to conventional cloud mining, BTCST portrays the decentralized spirit of blockchain, where all mining rewards are distributed by smart contracts that are onchain with full transparency,” said Alex Zhao, BTCST’s co-founder and CTO last week.
What do you think of the new tokens supported by PoW hashrate? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Binance Launchpool, Poolin,
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