Content
1. Preface
1.1 Current status and problems of mining
1.2 Opportunity
1.3 Our vision
2. About HashNest
2.1 Introduction to HashNest
2.2 Safety and stability
2.3 Multi-currency support
2.4 Imperishable computing power
2.5 Liquidity support
2.6 Multi-language support
2.7 Full client support
3. About Hash Token
3.1 Hash Token
3.2 Issuance and details of Hash Token
4. Payout plan
4.1 Rights and interests
4.2 Income distribution
5. Additional issuance of Hash Token
6. Termination and repo of Hash Token
7. Distribution node of Hash Token
8. Risk notification and Disclaimer of Liability
9. Conclusion
1. Preface
Blockchain
Blockchain is a decentralised distributed ledger that collectively maintains a reliable database technology through decentralisation. Because it is based on cryptography to concatenate and protect data, it is secure and has non-tampering features. Blockchain is considered to be “the next generation of disruptive innovation technology”. Its core advantage is to use decentralisation, data encryption, time stamping, distributed consensus and other means to build a new trust mechanism and efficient synergy mechanism, which will give birth to many new applications.
At present, the largest application of blockchain technology is cryptocurrency, among which Bitcoin is the most well-known. Satoshi Nakamoto, the founder of Bitcoin, designed a special mechanism to allow everyone to participate in getting Bitcoin by solving complex computational math problems on the Bitcoin network. Whoever solves the fastest and best, can get the corresponding bitcoin Reward (this is actually the process of mining and issuing Bitcoin). By solving computational math problems, Bitcoin miners make the Bitcoin payment network trustworthy and secure, by verifying its transaction information.
The role of mining in the blockchain, in general, mining is an important part of the blockchain ecology, not only solves the problem of who is going to deal with the data, but more importantly, it makes more and more people participating in the construction of the blockchain network, the more people involved, the more decentralised the entire blockchain.
1.1 Current status and problems of mining
With the explosive development of the bitcoin mining industry, the mining equipment competition has already started. The equipment for mining is constantly changing, and the computing power is getting bigger and bigger. From early morning CPU to current ASIC chip mining, the threshold to enter mining has gradually increased, making many people discouraged. According to BTC.com, in 2018, the total computing power of Bitcoin has reached 23 EH/s. Compared to 2010, this increase is more than 20 times. In 2019, the total computing power of Bitcoin has soared to 90.36 EH/s, and it is still growing. For cryptocurrencies, computing power is the total computing power of a unit that solves a block of complex computational math problems in a certain network under the network consumption. Regardless of how fast the computing power is growing, the blockchain's demand for this has never been saturated, but instead it expects greater computing power. As the computing power of the whole network continues to reach new high, the titan miners continue to increase the power barriers, and the threshold for smaller investors to participate in mining is getting higher and higher. This makes it more and more difficult for individuals with lower capital to participate in mining, and this is contrary to the decentralisation proposed by Nakamoto Satoshi, which is the spirit that everyone can participate.
With the surge in computing power, the mining industry has become synonymous with high-risk and asset heavy. Due to the ups and downs of the cryptocurrencies price, whenever the bear market comes, the decline in gross profit margin and net profit makes the capital return longer, and the risk gets even higher. Miners are faced with the problem of poor liquidity of the physical mining machine. Therefore, how to better resist the cold winter of a bear market and lessen the risk are some concerns of miners.
There are two main types of investors involved in mining. The first is miners who own mining machine, and the other is miners who purchase cloud computing power. For those who own mining machine, they are presented with the problems of docking the machine, daily operations and maintenance that made many entry investors discouraged. In recent years, cloud computing platforms have sprung up, but due to the irregular management and opacity of mining and cloud computing power, the entire industry is uneven and mixed. Some platforms are rather opaque, and the computing power received by the miners does not match the actual computing power. There are also some platforms that use the short-term leasing model. They do not fundamentally solve the problem of poor liquidity of the computing power. They only pass the risk of mining to the miners. As a result, the miners’ earnings and risk from mining do not balance, and they may end up bearing high risks; The benefits in such cases are relatively low.
1.2 Opportunity
The issuance of Hash Token is based on the application of the blockchain technology in specific mining scenarios. Hash Token and the physical mining machine are anchored to each other one by one; all Hash Token will be on the chain, and the real-time computing power put through a third-party mining pool can be viewed and monitored at any time. By doing so, the miner, the mining pool and the distribution node are under strict surveillance. This mode of supervision has eliminated the occurrence of illegal and untrustworthy situations aforementioned such as false mining and overselling of computing power.
By converting computing power into a digital asset, a user of the Hash Token can expect trading to be carried out through platforms such as exchanges, which greatly increases the liquidity. In addition to the free secondary market, Hash Token can be freely traded in the market, whether it is the mining farms or a buyer of Hash Token, this is undoubtedly a fundamental solution to the liquidity problem.
In addition, by splitting the computing power of a whole mining machine, the investment entry threshold is greatly reduced, and more people can participate in and experience the fun of mining and sharing mining revenue. The operations and maintenance of Hash Token is similar to a cloud computing platform, so the technical concerns dealt by ordinary investors is eliminated, and the daily operation and maintenance troubles are also removed.
In countries with excessive power and energy, such as Russia, China and other places where waste water is unhandled or untreated, mining is a wonderful industry that can turn waste water into dollars without the guilt of pollution, and exporting bitcoin can increase the country's foreign exchange earnings. The entire ecosystem of mining such as chip design, mining machine manufacture, logistics, operations, technical maintenance, demand for power supply, etc., has created a large number of employment opportunities, increasing the income of local people and power stations, power grids.
1.3 Our vision
HashNest aims to create a transparent cloud computing environment where everyone can participate, everyone can be supervised, and everyone can benefit. To realise the true decentralisation of computing power, we will integrate our superior resources and work with industry-renowned mining suppliers, exchanges, mining pools and mines to achieve our vision and goals with technological innovation and proven products.
2. About HashNest
2.1 Introduction to HashNest
Founded in 2013, HashNest is the world's first comprehensive platform to provide mining machine management, mining machine hosting and cloud mining services. As the pioneer of cloud mining services, HashNest has been cultivating edge-cutting technical services and has fostered strong relationships with well-known mining machine brand suppliers, world-class mining pools, mining farms and exchanges. We adhere to mission of providing customers with high quality, stable and safe mining machine hosting services. After more than 6 years of hard work, HashNest is now very well received by users in this mining industry, with a good reputation and a stable user base. At present, the number of users of the HashNest has exceeded 400,000, and it is still growing in more than 170 countries around the world. As a product with a stable user base and market-tested products, HashNest has won a strategic investment from Bitmain in early 2019.
2.2 Safety and stability
HashNest is the longest-running cloud computing platform in the world. The stable, smooth and transparent system of HashNest allows users to trade safely and flexibly online, and to view computing power and daily income in real time, accurate to each block solved data, also eliminating the troubles of traditional mining operations and maintenance.
2.3 Multi-currency support
HashNest works with the industry's leading mining machine manufacturers to support cloud computing hosting by using the most advanced mining machines and cloud mining in different currencies. Our cloud mining services, which supports Bitcoin, Litecoin, Zcash and Dash, will also include more currencies in the future.
2.4 Imperishable computing power
The computing power of the HashNest is permanent and for lifetime. Unlike other cloud computing power platforms on the market, after purchasing the computing power, the user can continue to mine until the mining income cannot pay the electricity bill. The experience is as close as possible to the user's self purchase of a mining machine.
2.5 Liquidity support
The function of HashNest that is highly sought after is our computing power trading market. We are also the only cloud computing platform on the market that allows users to buy and sell computing power. After years of operations and accumulation, we already have a good operational basis, and then the secondary market will directly support the new Hash Token.
HashNest has abundant resources and numerous partners in the industry. Before the issuance of Hash Token, it has reached consensus with a number of domestic and foreign mining machine dealers, mining pools, mining farms, exchanges, and investment funds. Once Hash Token goes live, there will be a strong backing and exchange of these entities. The access provides sufficient liquidity for the platform and brings a good experience to users.
2.6 Multi-language support
HashNest 2.0 version now supports more than 10 languages including Simplified Chinese, Traditional Chinese, English, Russian, Japanese, German, French, Spanish, Italian, Thai, Malay, and Indonesian to create a world-class blockchain platform by clearing language barriers
2.7 Full client support
HashNest provides support for all-platform clients, including the following:
- Web and Web mobile/responsive clients
- Android clients
- iOS clients
3. What is Hash Token
3.1 Hash Token
Hash Token issued by HashNest, with its total amount equaling to real computing power generated by the mining machine in our mining farms and displayed in the third-party mining pool, is tagged to the computing power one by one. And it can be increased based on the number of mining machines added. Hash Token is based on the decentralised blockchain digital assets issued by Ethereum, which is based on the ERC 20 standard token of the Ethereum blockchain.
3.2 Issuance and details of Hash Token
3.2.1 Issuance of Hash Token
There will be different Hash Token types, with each type differentiated based on the brand, model, computing power and power consumption of the mining machine. The unit is TH/s, and the Hash Token is one to one anchored to the actual computing power. Hence, 1 Hash Token is a computing power of 1TH/s.
3.2.2 Hash Token description
The Hash Token types issued as of November 11, 2019 is as follows:
Name: SHA256-BTC 55W
Issuer: www.hashnest.com
Type: Hash Token
Unit: THS
Power consumption: 55W/THS
Mining currency: BTC
Contract term: Perpetual contract
SYMBOL: BTC55W
Contract address: 0xb2B528413288a2Ae024907Fc654793ebdB3DF537
Power status query page: https://www.hashnest.com/public/hash_token/btc55w
Name: SHA256-BTC 40W
Issuer: www.hashnest.com
Type: Hash Token
Unit: THS
Power consumption: 40W/THS
Mining currency: BTC
Contract term: Perpetual contract
SYMBOL: BTC45W
Contract address:
Power status query page:
4. Hash Token Distribution
4.1 Rights
Issuer: HashNest has the ownership of the physical mining machines, the rights to distribute mining income and the rights to define Hash Token.
Node distribution: Through the third-party node entrusted and certified by the HashNest, it is responsible for the underwriting of the token, responsible for the custody of the token holder, and ensuring the safe storage of the token. It is obliged to distribute the income to the token holder. It does not actually own the ownership of the physical mining machines and token. Enjoy the benefits of the underwriting service fee, and the service fee shall be borne by the issuer.
Token holder: The holder of the token enjoys the complete income distribution right and transfer right of the token, and does not actually own the ownership of the mining machines.
4.2 Income distribution
4.2.1 Income distribution rules
Taking the average daily mining income given by the mining pool, and after deducting the daily electricity (maintenance) fees, the mining handling fees (on demand) and (any) repair fund, the income amount is distributed according to the holder's number of Hash Token. The distribution of mining income, electricity and repair funds are settled every day at 3am (UTC+0).
4.2.2 Income distribution method
According to the actual situation, HashNest will choose the distribution method of the computing power put through the mining pools, which are usually PPLNS, PPS, PPS+ and so on. The income distribution time is based on the daily settlement time of the mining pool.
PPLNS (Pay Pre Last N Shares)
1. PPLNS (Pay Per Last N Share) refers to the calculation of mining income based on the contribution of the mining machine to solving the block.
2. When the mining pool solves 1 new block and reaches 6 network confirmations, the mining pool will transmit the block information and revenue to HashNest. According to the time when the solved block data is received, HashNest allocates mining income according to the ratio of the computing power owned by each user at the current time to the total computing power of the type of mining machine.
3. The time when HashNest receives the solved block information may be affected by the network confirmation delay, network failure, website maintenance, program failure, etc., resulting in delay in the revenue distribution time. If there is a transfer of computing power during this period, the owner of the computing power enjoys the income at the time point.
Calculation formula: PPLNS income = based on the profit/explosive total power of each block * the calculated power value of the user
PPLNS_Payout=(Pay_Per_Block/THS)X Hash_Amount
PPS (Pay Per Share)
1. PPS (Pay Per Share) refers to the mining income calculation according to the computing power submitted by the mining machine in the mining pool and the current network difficulty. After deducting the mining pool handling fees, it is the income for the miners.
2. The theoretical return per P/S per day (PPS/T/Day) according to the formula is 1*10^9*86400*Current Block Reward/current network difficulty/2^32 at the time of allocation, according to the user's computing power.
3. When the mining pool solves a new block and reaches 6 network confirmations, the mine pool will transmit the block information and revenue to HashNest. HashNest will allocate income at the time when the block information is received, and the time spent in the current block (Duration Time), the ratio of the 24-hour period multiplied by the theoretical gain per TH of the calculation power per day multiplied by the number of user calculations for the user's calculation of the time.
Calculation formula: PPS income = daily theoretical income per T * actual explosion time spent / 24 hours * user power
PPS_Payout=(PPS/T/Day)*(DurationTime )/24Hours * Hash_Amount
PPS+
1. PPS+ is a combination of PPS and PPLNS models, that is, the Coinbase reward for the solved block is PPS settlement according to the number of solved blocks in the mining pool theory, and the miners obtained from the actual solved blocks of the mining pool/transaction fee according to the mining pool. The fee is settled in accordance with PPLNS.
2. The settlement method divides the transaction fee to the miners, so the transaction fee is high if the income is high; the transaction fee is low if the income is low.
4.2.3 Electricity (maintenance) fees
1. HashNest electrical cost is US$0.075 per kWh, standard across all mining machines. According to the calculation of the power consumption of the mining machines, the daily electricity cost per T calculation is calculated.
Daily electricity cost per T calculation = power consumption (KW / H) X 24 hours X 0.075USD / KWH
2. The electricity fee is charged at the same time as the income distribution, and is based on the prevailing exchange rate of the US dollar against the bitcoin from Coinbase, Bitstamp, Bittrex, Bitfinexon platforms. It is deducted from the total daily income of the user after the currency exchange.
3. The calculation formula is: the daily maintenance fee per T computing power X the number of Hash Token currently owned by the user.
4. If the user has insufficient balance to pay the electricity bill, the system will deduct the arrears from the next income distribution.
5. Settlement happens every day at 3am (UTC+0).
For example, the power consumption of a mining machine is 55W/THS, and the electricity cost per kWh is 0.075 US dollars. Hence, the daily electricity cost per TH is $0.099. The fees are deducted from the income based on the real-time exchange rate at the time the income is paid to you.
4.2.4 Repair fund
In the daily operations of mining machine, faults, aging, scrapping, etc. will occur, which will result in a decline in computing power. A corresponding repair funds are needed to supplement the computing power.
1. Source of repair fund: When the daily income is settled, 5% of the total mining revenue is allocated to the repair fund to ensure the stable and sound operations of Hash Token.
2. Use of repair fees: Due to the normal fluctuations in computing power, when the fluctuation range is between +/- 5%, we regard them as normal fluctuations and will not use of the fund. When the anchored mining machine is faulty, depleted, scrapped, etc., and then computing power is reduced by more than 5%, the repair is fund will be used to supplement the mining machine of the same specifications, to make up for the missing computing power, and to ensure the computing power value is back to normal range.
5. Additional issuance of Hash Token
5.1 When the new batch of mining machine is put on the shelves, the one-to-one anchoring will be carried out according to the actual computing power available. The number of additional issuances depends on the batch size.
5.2 The issuance of the Hash Token will be issued at the same time, at all distribution nodes.
6. Termination and repo of Hash Token
6.1 When the income of Hash Token is lower than the electricity fees, HashNest will suspend the income distribution. When the mining revenue reverts to higher than the electricity fees, the income will be restored. If the income for 10 consecutive days cannot be paid for electricity and other expenses, HashNest will permanently terminate the income distribution of Hash Token, and then the mining machines will be halted for good (Termination).
6.2 HashNest will repurchase Hash Token from users based on the prevailing depreciated value of the second-hand mining machine, after deducting the loss of the mining machine and the residual value of the logistics costs. Repurchase (Repo) is officially carried out by HashNest and the repurchase period is subject to the announcement by HashNest. Once the repurchase period is over, HashNest is not obligated to perform the repurchase.
6.3 After the warranty period, if there is a large number of faults, aging and scrapping miners, and we finish the total maintenance fund to supplement miners, the mining payout is still insufficient to pay the electricity fee, HashNest reserve the right to terminate the contract in advance and carry out liquidation.
7. Distribution node of Hash Token
7.1 Distribution node for Hash Token subscription and transactions
The third-party platform entrusted and certified by HashNest is used as the distribution node of Hash Token, and is responsible for the underwriting, trading and income distribution. And accept the supervision of all distribution nodes.
All income distributions are on the chain, which can be queried online and is fully disclosed.
7.2 Official Certification Distribution Node Details:
BitKan https://bitkan.com/en/
8. Risk notifications and disclaimers
Disclaimer
This document is only used to convey the purpose of the information and does not constitute an opinion on the trading of Hash Token. Any similar offer or levy will be made under a trusted clause and with the applicable securities laws and other relevant laws, and the above information or analysis does not constitute investment decisions or specific recommendations. This document does not constitute any investment advice, investment intention or instructed investment in the form of securities. This document is not intended to be an understanding or offer of any purchase or sale, or any invitation to buy or sell any form of securities, nor is it a contract or commitment of any kind.
Risk Notifications
HashNest clearly indicates that the users clearly understand the risk of using HashNest services. Once the user participates, he or she understands and accepts the risk of HashNest services, and is willing to personally bear all the corresponding results or consequences.
HashNest clearly states that it will not be responsible for any direct or indirect losses caused from participating in HashNest services, including:
1. Policy and legal risks: As the current policy and legal supervision of digital currency are not mature, its value may not be protected by law/regulation, and its actions may be terminated as violation of laws or policies.
2. Cryptocurrency risk: The value of any cryptocurrency holder and any number of any cryptocurrency may lose some or all of its value at any time; for all losses due to the reduced (or even zero) value of the cryptocurrency by the user at its own risk, HashNest does not assume any responsibility.
3. System maintenance risk: HashNest will perform system shutdown maintenance or upgrade from time to time. We cannot guarantee that the services provided are continuous and uninterrupted.
4. Market risk: due to the difficulty of mining and/or changes in other mining parameters/attributes, the market price fluctuation of cryptocurrency (legal currency versus cryptocurrency exchange rate), the value of the outdated and slow-moving mining machines, and the value of cryptocurrency , resulting in investment losses, HashNest does not assume any responsibility and compensation obligations.
5. Force majeure and accident risk: Force majeure events such as natural disasters, digital currency market crisis, war, or changes in national policies that cannot be foreseen, cannot be avoided, or cannot be overcome, or viruses, Trojans, malicious programs, network congestion, system instability , system or equipment failure, communication failure, power failure, data transmission, data anomaly, market transaction stop, third-party service problems or government actions, etc., may result in the termination of computing power, user investment income reduction and even the principal Loss, HashNest does not assume any responsibility.
6, Because of the economic losses caused by user trading operations
7. Any errors, omissions or inaccuracies arising from personal understanding;
8. Loss caused by various blockchain assets of the individual transaction and any resulting behavior.
The Standard Hash Token is a token of HashNest. Hash Token is not an investment. We can't guarantee that Hash Token will increase in value, and in some cases, there may be a decline in value. Those who do not use their Hash Token correctly may lose the right to use, and may even lose their computing power. It is not a kind of ownership or control. Controlling Hash Token does not represent ownership of HashNest or HashNest’s applications. Hash Token does not grant any individual any participation, control, or any right to make decisions about HashNest.
9. Conclusion
In summary, the health and vigorous development of the blockchain industry has arrived. We are willing to accelerate the application of blockchain technology in the field of our cultivation and promote the internationalisation and standardisation of this field. By integrating the high-quality resources of the whole chain, it aims to lower the investment threshold, standardise the operations of cloud computing platform, reduce the intermediate links, and drive all parties in the chain to make the whole ecology develop healthily and sustainably.
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