According to CoinDesk, a financial product representing Bitcoin mining power can now be traded on the Arbitrum network with the launch of Lumerin, a hash power marketplace. The Lumerin Hashpower Marketplace enables Bitcoin miners to easily buy and sell capacity to interested peers and non-miners, allowing purchasers to increase their chances of earning bitcoin rewards without buying rapidly depreciating equipment. Trades are routed through smart contracts and specify hashrate amount, duration, and price.
Potential buyers can browse and select contracts that suit their needs, engaging in direct, trustless transactions and paying in real time as the contract is completed. For sellers, miners in low-electricity-cost areas can arbitrage below-average prices by selling hashrate contracts at market prices, keeping the difference. Hash power, or hashing power, is the power a computer or specialized hardware uses to run and solve different encryption algorithms that safeguard blockchains such as Bitcoin. Miners typically run massive hardware systems that use significant electricity to maintain the network, in return for bitcoin rewards. Some miners may have excess capacity that would otherwise lie vacant. Marketplaces like Lumerin offer the rights to this power to buyers, who get a portion of the bitcoin rewards. This model allows users to mine Bitcoin without the need for highly specialized knowledge, costly hardware outlays, or long-term commitment.
