BeinCrypto spoke to WB, the co-founder of the HashMix team. We discussed the increasing complexity of mining and how they are making NFTs of hash power.
The NFT boom is currently underway, but it is mostly focused on tokenizing collectible and art items. The HashMix team is looking to tokenize something more directly related to the crypto world – hash power.
To do this it implements several universal decentralized protocols so that users can trade with their hash power. This also includes lending and swapping. It wants to avoid oversold hash power, counteract a lack of liquidity and bring more flexibility to mining.
Much like bitcoin’s founder Satoshi Nakamoto, the team currently operates anonymously. This is partly due to some of the team living in China. However, they have said they may give up their anonymity in the future.
“Our core team members have experience with the various forms of blockchains, PR, marketing, mining. This is why we can make this great combination of mining power, NFT, and DeFi.”
Addressing mining issues
Crypto mining has no shortage of issues. These range from internal problems relating to liquidity to external image problems, like the recent backlash against its environmental impact.
“Mining has always been an important part of the cryptocurrency industry. And has a very long history, as long as bitcoin’s history itself. It’s also one of the most profitable industries in the ecosystem. So more and more people want to be part of it.”
“However, the crypto mining industry has been played by centralization and liquidity problems. Although cloud mining allows investors without expensive hardware to join mining, it also misses to provide liquidity and solves only a piece of the puzzle. So HashMix is designed to solve all these problems,” explains WB.
Traceability, liquidity, transparency
To respond to these issues, HashMix’s tokenization protocol converts mining power for any proof of work (POW) blockchains, such as ethereum or bitcoin, to NFTs.
“That brings us traceability, liquidity, transparency. This prevents the risk of overselling and fraud and effectively combines the different hash parts of different cryptocurrencies based only on very easy-to-use NFTs.“
“We create protocols for exchanges, trading, and lending. This enables everyone in our ecosystem, from miners to investors with hash rates to DeFi participants, to easily buy and sell hash power and access numerous financial options such as stake and liquidity reduction. For the first time, we are bringing hash power and real-world mining together using the HashMix protocol,” WB says.
Proofs of hash power
HashMix works by utilizing multi-signature, smart contract, and cross-chain technology to generate and submit proofs of specific hash power to the blockchain.
It is from these proofs that the NFT tokens are issued. As a result, hash power can circulate freely while ownership is ensured. However, these are still just plans. HashMix is still on its roadmap to a public platform.
“When the NFT market is fully up and running, miners can sell their NFTs for crypto or swap their NFTs to switch to other mining functions, while investors can buy the NFTs to get the mining rewards of the underlying hardware.”
In June, more NFT products for mining are expected to come onto the market so that trading and exchange functions are also possible.
“We will also introduce the decentralized incentive mechanisms that enable people to participate in the validation of the mining NFTs and earn HSM tokens as a reward so that the protocol can be maintained and operated decentrally.”
“In terms of incentives, miners, coin/token holders, and investors can join the HashMix ecosystem and find a way to earn rewards in HSM by lending and borrowing coins/tokens, trading hash power tokens, NFTs, and mining power bet and participate in liquidity. Early adopters and loyal users receive additional rewards,” WB says.
DeFi lending for miners
As part of their roadmap, HashMix also intend to introduce a lending function to the platform.
“We would like to become the most attractive filecoin lending platform so we can attract more mining powers and more users,” says WB.
Miners will be able to secure their filecoin mining service and borrow FIL from the platform.
“We want to attract early participants to the platform, as this offers an attractive return. After that, we will launch our first mining NFT product that same month,” says WB.
“Through this product, miners can tokenize their Filecoin storage mining performance and receive corresponding NFTs.”
“At this point, all mining power previously secured in the loan will be tokenized, and miners will be able to issue new mining power NFTs themselves. The users can receive and transmit the NFTs like other cryptos, use them as collateral on our platform and participate in DeFi options,” says WB.
While the platform is not yet public, these plans have yet to be tested on a large scale. How these interactions will play out for miners wanting to do a bit more with their hash power.