If you get to know that you can get the work done (mining) in less than $500, which one would you go for? Any smart miner would opt for the second option. The second option is called a mining contract. Now, these crypto contracts for mining would obviously offer a lesser scale of reward but looking at the huge cost savings, the second option is certainly worth it. Check out more about crypto mining at Multibank.io.
So, what are good contracts for mining? Well, the post below will discuss in detail about these contracts- but prior to that let’s have a few words about the concept of crypto mining.
Exclusive to PoW blockchains, crypto mining is a process by which a blockchain verifies its new blocks before adding the fresh one to the existing blockchain. A lot of people confuse the mining process with “minting” or creation of new cryptos but that’s just a part of the mining activity.
A blockchain network follows a consensus mechanism to ensure a complete verification of every new block that will be added to its chain. Blockchain platforms that run on PoW consensus mechanisms, say Bitcoin, follow the “mining” operation for verification. Miners who help the blockchain networks with the mining process, get rewarded with new coins. And, that’s how new cryptos from the blockchain come to circulation.
As part of the crypto mining process, participant miners have to solve complex mathematical equations to find the right hash. The first one to arrive at the right guess will be awarded with new coins by the blockchain.
Problem with current mining system
In the initial days of mining, it was easy to participate in mining with simple computers. But, the popularity of mining led to more competition in that scene that eventually resulted in more complicated mathematical equations for miners. And a simple PC is unable to provide the mammoth volume of computing power you need for computing today. Thus, these days you have dedicated mining rigs, the ASIC rigs. While the ASIC rigs are especially designed for mining and assure successful mining experience, these devices are extremely expensive. Not only that, these devices consume huge amounts of electricity for operation.
As a result, most of the solo miners are unable to afford ASIC mining rigs. And that has led the way for huge conglomerates to capture the crypto mining scene big time, leaving very little room for solo miners. In other words, the contemporary crypto mining process features an extremely uneven playing field.
When a blockchain network gets popular, it often faces network congestion with too many miners vying for the reward. Increasing the number of miners leads to a surge in difficulty rating (for mathematical equations) as well to prevent faster offering of rewards. The high competition, as mentioned above, leads to the need of investing in even more powerful mining rigs – that are otherwise unaffordable for many solo miners.
Crypto mining contracts offer help
The crypto contracts for mining aim to resolve the problem mentioned above to some extent.
So, what is a crypto mining contract? Well, in this case, the miner signs a deal or an agreement with a crypto mining company to avail the mining service. It’s the mining company that owns and maintains the mining hardware that will work on behalf of the miner (upon payment). The miner here will simply need to pay for hashpower and nothing else. The mining company will obviously charge a nominal fee as commission for executing the mining task on behalf of the miner.
Mining contract plans
The crypto contracts for mining generally cone with various pricing plans to choose from, as per your budget and needs. On an average, you will have plans starting from just $499. In regard to hashpower, you might get around 12.50 MH/s with crypto contracts starting from $499. Higher range plans can even go up to $3,999+ and these plans will offer more hashpower than basic plans. The high-price plans will offer a much higher hashpower, around 125 MH/s. The mining contract companies will generally charge a one-time fee. You won’t even have to take care of maintenance fees.
Benefits of opting for crypto mining contracts
There is a host of benefits of signing up for crypto contracts for mining.
The crypto contracts for mining offers solo miners a more affordable way to participate in crypto mining and explore opportunities to earn rewards. If you sign crypto contracts, there is no need to waste money on-
- Buying pricey mining hardware
- Developing an infrastructure to install and operate the mining rig
- Maintenance costs
- Repair costs
No burden on energy bills
Mining is a high energy-intensive process. If you install mining rigs independently, your energy bills would probably shoot up to the moon. The crypto contracts for mining will save you from such high-end energy bills.
No excess heat and noise
A mining hardware setup generates excessive heat and noise. The crypto contracts for mining will save you from all these unwanted hassles as here someone else will take care of the mining hardware setup and operation on your part.
If you opt for crypto contracts for mining, you can start the mining process the moment you finalize the agreement. But, things won’t be this smooth if you want your independent mining setup. After you place an order for the mining hardware, you will have to wait for a certain period of time to get it shipped and installed in your mining zone.
Various pricing plans
The crypto contracts for mining come with various pricing plans so that there is something for every budget.
You have quite a bunch of crypto mining companies today that are ready to share their server and mining rewards with willing miners against a nominal fee. But, not all such companies can be equally trustworthy. Thus, always look for a mining company that carries a solid track record in the crypto contracts scene. The company must also assure state-of-the-art mining rigs and 100% uptime.