Cryptocurrency mining is a computational process that seeks to solve cryptographic problems. Mining is instrumental to the decentralized nature of non-premined tokenized assets and also ensures issuance of new coins into circulation. For blockchain built based on proof-of-work (PoW) consensus such as Bitcoin, Ethereum, Dash and others, mining is a must as it ensures validation of transactions and security of the network. For successfully mining a block, a miner is awarded a stipulated number of that crypto asset. The equipment required for crypto mining are often high-grade and specialized for the task due to the high amount of hash rate (computational power) required to decrypt block or mine. While in the very early times of cryptocurrency, classic CPUs (central processing units) could be used to profitably mine crypto, doing so today will amount to a total waste of time and resources because of the difficulty level of mining which has been raised and will still be raised on an ongoing basis.
Today, the mining industry is dominated by large mining firms with high-grade specialized mining rigs. The competition cannot be survived, in terms of economy of returns, by individual or small-scale miners because of the large capital intensive nature of the business. People are therefore turning to investing in these mining farms with the promise of sharing in the mining rewards accrued to the operations of the miner.
These mining service companies mostly pass liabilities on to their investors by conducting ICOs with amplified risks of loss of capital to the retail investor. For example, the mining company could cancel mining contracts in the event of unprofitable mining service without considering the investors. MinedBlock presents a mining solution different from existing ones.
MinedBlock plans to build a dedicated mining facility that will enhance profitability through a multi-pronged business approach. Firstly, MinedBlock is a registered limited liability company with the intent to raise funds needed to establish and run the mining facility optimally through a security token offering (STO) based on Polymath ST20 standard. The security tokens, MBTX, represent one preference share in MinedBlock Holding Limited. This implies that investors are investing in a real company.
Secondly, token holders are entitled to 75% of the revenue generated from the mining service. This dividends will be issued monthly and initially in ethereum tokens, with the option of distribution in other tokens mined by the company. Additionally, MinedBlock plans to mine multiple cryptocurrencies and switch over to the more economically rewarding token depending on the difficulty level and mining success rate. Finally, there is also strategy to diversify investment by considering the options of: belonging to an existing mining pool to maximize profit and running master nodes to create additional stream of income. These exemplify the commitment and multiprong approach of MinedBlock to running the mining service profitably.
The opportunities in blockchain are diverse. Cryptocurrency mining represents one of the major markets that can be leveraged to generate revenue. MinedBlock is set to not only lower the entry barrier into crypto mining but also provide a secure and reduced risk share-backed access.
For more information on MinedBlock: Website: https://www.minedblock.io/
Whitepaper: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
Bounty0x username: Mexite
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