Bitcoin mining firm Navier launched Reactor.xyz – a tokenized hashrate marketplace for retail users. The marketplace aims to provide users with greater control over their acquired hashrate, which they can then trade with each other in the form of ERC-721 tokens.
Reactor Uses ERC-721 Tokens as Representation of Hash Power Ownership
Digital currency miner Navier unveiled a marketplace allowing retail customers to buy and sell tokenized hashrate. The primary objective of the marketplace is to simplify bitcoin mining for retail users, while also making it more reliable, according to Navier CEO Josh Metnick.
The marketplace, called “Reactor,” aims to deliver “ownership of an asset, [and] ownership of a certain amount of hashrate that will mine for a certain amount of time,” Metnick said. He added that the marketplace is similar to cloud mining in some ways, though it provides users with even more control over their hash power through abilities such as letting them choose what mining pools to use.
Reactor differs from standard mining methods that retail users use without establishing their facilities. These include cloud crypto miners such as Bit Deer or Pionez, which have the mining rigs they use to rent out hashrate, or use a marketplace such as Compass Mining, which allows users to buy a physical mining machine and hosting services.
Navier says the two options carry a lot of issues and uncertainty, which the company wants to resolve. Through tokenization and sophisticated technology, Navier aims to guarantee redundancy across sites for any amount of hash power and provide 100% uptime. Reactor uses ERC-721 tokens to represent hash power ownership, which users can easily trade. Further, the hashrate sold stems from industrial-scale crypto miners, unlike Navier’s sites, such as cloud miners.
A Struggling Mining Industry
Based in Chicago, Illinois, Navier is a digital currency mining firm in North America. Over the past five years, the firm claims it has sourced, installed, and operated over 100MW of mining equipment used to mine cryptocurrencies. In 2019, the company signed the first contract to deploy mining rigs with a power generator with a more than 10,000 MWh capacity.
Navier’s unique marketplace comes in the wake of a difficult period for mining firms, which struggled to survive the harshest-ever crypto winter. In December, Core Scientific, one of the biggest bitcoin miners, filed for bankruptcy due to severe pressures amid the market downturn.
While the crypto winter has hit the broader crypto market, the mining sector has been particularly damaged due to depressed crypto prices, high energy costs, and a substantial amount of debt crypto miners have hanging over their heads. The start to this year was somewhat better for the industry, with bitcoin mining revenue in January rising 50% over 30 days, though it was still down 30% compared to the same month last year.
This article originally appeared on The Tokenist
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