Cryptocurrency mining platform NiceHash has launched the first solo crypto mining hashpower exchange product where solo miners can rent computing power from other miners to mine PoW cryptocurrencies , in attempts to stimulate declining mining profitability, as the crypto winter and rising energy costs weigh on the industry.
NiceHash’s new “Catch The Block” is the first service available that will allow miners to purchase “solo mining packages” where they can rent and use other crypto miners’ computing power (hashpower) to mine their own Proof-of-Work (POW) cryptocurrencies. .
Like a “a whole new form of solo mining”, NiceHash’s new service is based on a package-like concept, where solo miners can rent hashing power from other miners for a set period of time (by purchasing “tickets”) to attempt to mine coins and to “validate” a block. If they do, they get the block reward (i.e. 6.25 Bitcoins = $120,000).
NiceHash’s new service is a two-pronged approach to trying to increase the profitability of mining across the industry, given the plummeting profitability levels of crypto mining; solo miners will be able to use other miners’ rigs to mine coins (no use and cost of their own computing power), and experienced miners with large rigs will receive payment via purchased tickets to subsidize their energy costs and earn more than they would. by them selves.
Last week’s Ethereum (ETH) meltdown and falling coin prices in the crypto market (also known as crypto winter) saw the profitability of daily GPU mining s collapse completely.
Less than a third of ETH hash power migrated to PoW chains after The Merge. About $5 billion The value of mining hardware has been displaced by the change, forcing ETH miners to look for new coin mining opportunities on other low-profit PoW chains. Laborless ETH miners using GPUs have jumped to other PoW coin networks such as Ravencoin (RVN), Flux (FLUX), and Ethereum Classic (ETC), or switched to ASIC mining on Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC).
With new over-demand to mine alternative coins, new coin difficulties have increased, leading to lower returns and dividing the reward among more miners. Additionally, as energy prices rise worldwide (up to 70% in some parts of the world), crypto miners are finding that the cost of running their GPU hardware outweighs the reward, because the probability and profitability are currently very low. With the flood of ETH hash rates wiping out the rewards available to miners on PoW chains, many crypto miners are being forced to abandon and abandon their expensive mining rigs amid a race for profits.
As the first solo mining concept of its kind, NiceHash’s new Catch The Block product aims to immediately rectify the profitability problem of crypto mining. The BTC paid by the solo miner to purchase the mining package goes to the other miner who provides the hashing power, which will help subsidize the other miner’s electricity costs when mining new coins.
Likewise, Catch the Block will create profit for solo miners where they usually cannot. If lone miners are currently trying to mine themselves with their own equipment, the cost of their hardware often far outweighs the reward, as the probability is very low.
How Catch The Block will work:
A solo miner will buy a Solo Mining package (a ticket) and then wait to see, renting the hash power of other miners, if he has successfully mined a block of cryptocurrency. If they do, they will get the block reward.
3 different types of packages will be available:
Each of these packages has 3 sizes (price tiers) that solo miners can select from – and the duration and probability of each is slightly different, ranging from 1 hour to 4 hours. Solo miners will be able to click on each package and see which coin will be mined, along with the package price, probability (odds), and estimated reward.
NiceHash has always been supporting “the little guy” since day one. We appreciate the vision to make cryptocurrency easy and accessible to everyone, and most importantly to support the mining community. Love us or hate us, NiceHash has been the backbone of much of the mining industry, especially the GPU mining scene, and many companies that are bigger than us today were born out of success. NiceHash’s model of bringing mining to everyday people. Many people were earning a living from mining with their GPUs, and then Ethereum decided to turn off that income for millions of miners overnight. When challenges like this arise we want to provide as many alternatives as possible for miners, and Catch the Block is exactly that, it allows anyone to find a block and get the reward and is very easy to get started . All paid bitcoin bundles go directly to the miners on the other side, which benefits both hashpower buyers and sellers.
Martin Skorjanc, CEO of NiceHash
As it stands, NiceHash has become the only crypto mining provider in the world to offer this single-player mining process. They hope to support everyday crypto miners and prevent them from deciding to exit the mining industry altogether, due to declining profit margins.
NiceHash’s new solo mining service will be available for miners from 2:00 PM CEST on Friday, September 23 – for more information, visit: https://www.nicehash.com/solo-mining