There is a new type of token that is growing in popularity in the crypto space with the introduction of coins backed by a certain amount of PoW (proof-of-work) hashrate. On January 6, 2021, Binance launched a new project called the Bitcoin Standard Hashhrate Token (BTCST), a coin that represents 0.1 Terahash (TH / s). In addition, the Poolin mining operation also revealed a hash token called pBTC35A, and each token represents 1 TH / s hash rate with given SHA256 processing power.
Tokens supported with proof-of-work
In the Bitcoin network (BTC), the hashrate of the protocol has increased significantly in the past few weeks, despite the difficulties involved in network mining. A significant number of mining equipment has also been added to the network in recent months, and exchanges such as Binance and Huobi have joined the mining battle.
With bitcoin mining showing significant upside potential, some heavyweights in the crypto industry have introduced tokens backed by PoW hashrate. Last week, Binance unveiled a new project called the Bitcoin Standard Hashhrate Token (BTCST), a coin that is reportedly backed by 0.1 Terahash (TH / s).
“BTCST is on its way to address the issue of limited exit options by bringing Exchange-quality liquidity to Bitcoin mining and secondary trading,” Binance announced last Wednesday. “BTCST will appear as a leveraged Bitcoin token with no liquidation risk. BTCST will create an efficient market for the mining power of Bitcoin, much like Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin. “
The crypto trading exchange added:
BTCST is backed by 0.1 TH / s of real bitcoin mining performance, which has historically been shown to be positively correlated with the performance of digital gold, and therefore the value of BTCST is rising along with the currently exploding Bitcoin market.
Poolin starts the Mars project, Binance PoW Token Audited
Binance isn’t the only company looking to offer a PoW mining token, however, as the Poolin mining operation has also launched the Mars project. On January 11, 2021, Poolin tweeted: “Join the first Ethereum-based standardized hashrate protocol and earn a reward for wBTC and LP. Infinite possibility when PoW mining kicks in [an] Ethereum Smart Contract, ”the mining pool continued. Currently, Poolin is the fifth largest Bitcoin pool, recording around 9.4% or 14 exahash per second (EH / s) today.
The ERC-20 token minted by Poolin is called pBTC35A, and the company claims that every coin is backed by the company’s PoW hashrate. “The protocol consists of pBTC35A tokens and [the] MARS token, ”explains Poolin’s announcement. “Each pBTC35A token represents a hashrate of 1TH / s with a given performance ratio. Mining equipment is in the care of Poolin Superhashrate during its life cycle. While the net profit would be distributed to wBTC per block. “
According to Poolin, the first batch will be “50,000 pBTC35A tokens (approx. 50 PH / s) for Bitcoin mining (output with wBTC) in this protocol and will physically lock more than 50 PH / s machines”. Poolin notes that individuals can obtain the tokens through the in-house shop ((Basic KYC required) or through the token’s Uniswap contract. The company further stated that Ethereum and other degradable PoW coins are also created, Poolin has however no confirmed schedule.
According to Binance Launchpool, the PoW token (BTCST), the recently launched organization also passed an audit by the blockchain security company Certik and received a “98 out of 100” rating in a security audit. According to Binance Launchpool, users can use BNB, BUSD and BTC in separate pools to manage BTCST tokens.
“Compared to conventional cloud mining, BTCST shows the decentralized spirit of the blockchain, with all mining rewards distribution being done through smart contracts that are completely transparent in the chain,” said Alex Zhao, co-founder and CTO of BTCST, last week .
What do you think of the new tokens supported by PoW hashrate? Let us know what you think on this matter in the comments section below.
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